Brand Domestic Marketing Channels And Technology Are Maturing

In the first half of 08 years, 58 listed companies of textile and apparel completed their business income of 42 billion 621 million yuan, an increase of 13.12% over the same period last year, and realized a total profit of 4 billion 829 million yuan and a net profit of 2 billion 674 million yuan, up 26.74% and 36.40% respectively over the same period last year.

Income tax adjustment is the main reason for higher net profit growth.

..58 company's consolidated gross profit margin was 20.76%, an increase of 2.5 percentage points compared with the same period last year, and the net assets yield rose from 4.47% to 4.99%, and its profitability was higher than that of the same period last year.

Textile and garment companies are very different.

Driven by the rise of domestic consumption, the 22 garment companies completed sales revenue of 19 billion 63 million yuan in the first half of the year, an increase of 36% over the same period last year, while the sales revenue of 36 textile companies was 23 billion 558 million yuan, down 0.44% from the same period last year.

The average period cost rate of 58 companies was 13.10%, an increase of 0.13 percentage points over the same period last year.

In the three expenses, sales and management expenses increased by 15.17% and 3.35% respectively, and the financial cost increased rapidly, up 39.66% compared to the same period last year, indicating that the financial burden of enterprises increased.

36 companies in the textile industry invested 201 million yuan in the first half of the year, down 30.95% from the same period last year. The investment income of 22 clothing companies was 1 billion 467 million yuan, up 1.29% over the same period last year. After deducting YOUNGOR, the other garment listed companies achieved a total investment income of 151 million yuan, down 16.11% from the same period last year.

The 12 key companies that covered the first half of the year completed sales revenue of 169.12 yuan 1, accounting for 39.68% of the sales revenue of 58 companies; net profit of 2 billion 943 million yuan, accounting for 84.01%; the year-on-year growth rate of revenue and profit was 43.86%, 53.57%, 30.74 and 43.86% points higher than the average level of 58 companies.

The average gross profit margin of key companies is 34.04%, and net assets yield is 9.83%, up 3.06 and 1.3 percentage points respectively.

Compared with the average level of 58 companies, the gross profit margin and return on equity of key companies were 13.28 and 4.84 percentage points higher respectively.

We will continue to look at the domestic clothing companies with brand and channel at the terminal of the industrial chain, and the leading companies that have obvious technological advantages to maintain the "overweight" rating of the seven wolves, Weixing shares, Lu Tai A and Mei Bang garments.

(1.) summary of interim financial data of textile and apparel listed companies, 1.1., revenue growth has been steadily increasing and profitability has improved. In the first half of 08 years, 58 listed companies of textile and apparel realized operating income of 42 billion 621 million yuan, an increase of 13.12% over the same period last year, and realized a total profit of 4 billion 829 million yuan and net profit of 2 billion 674 million yuan, up 26.74% and 36.40% respectively over the same period.

From 08 to January 1st, the corporate income tax rate dropped from 33% to 25%, which is the main reason why the net profit growth rate is higher than the total profit growth rate.

In the first half of the year, the consolidated gross profit margin of 58 companies was 20.76%, an increase of 2.5 percentage points compared with the same period last year, and the net assets yield increased from 4.47% to 4.99%, and the profitability was higher than that of the same period last year.

The 1.2. sub industry is very different. The situation of textile and clothing companies is very different.

Driven by the rise of domestic consumption, the 22 garment companies completed sales revenue of 19 billion 63 million yuan in the first half of the year, up 36% compared to the same period last year. The sales revenue of 36 textile companies was 23 billion 558 million yuan, down 0.44% from the same period last year.

From the point of view of profitability, the gross profit margin of clothing companies increased from 26.82% to 30.75%, and the gross margin of textile companies dropped from 13.20% to 12.67%.

The gross margin gap between the two industries has widened further to 18.08 percentage points.

Despite the statistical data, the total profit of 36 textile companies still increased by 29.05%, but the increment was mostly contributed by non operating income.

In the first half of this year, the net income of 36 companies was 235 million yuan, an increase of 139 million yuan over the same period last year. After deducting the operating balance, the profit growth rate dropped to 12.25%.

1.3. increased the financial burden and reduced investment income. The average cost of the 58 companies in the first half of the year was 13.10%, an increase of 0.13 percentage points over the same period last year.

In the three expenses, sales and management expenses increased by 15.17% and 3.35% respectively compared with that of the previous year. The increase of financial expenses reached 39.66% over the same period last year, indicating that the financial burden of enterprises increased.

The first reason is that the implementation of tight monetary policy has made the cost of corporate financing rise. The two is that the accelerated appreciation of RMB brings a large amount of exchange losses to export oriented enterprises.

Owing to the deep adjustment of capital market, the financial assets held by listed companies have been shrunk to varying degrees.

On the profit statement, 36 companies in the textile industry invested 201 million yuan in the first half of the year, down 30.95% from the same period last year, and the investment income of clothing companies was 1 billion 467 million yuan, up 1.29% over the same period last year.

Among them, YOUNGOR only sold 1 billion 187 million yuan in CITIC Securities, and after deducting YOUNGOR, the other companies achieved a total investment income of 151 million yuan, down 16.11% compared to the same period last year.

The decline in investment returns is undoubtedly a "worse thing" for businesses that are already struggling.

(2.) the key companies' Interim performance is 2.1.. The performance of key companies is far above the average level of industry. The 12 listed companies that we focus on are the leading enterprises in various sub sectors. In the first half of the year, 12 companies completed sales revenue of 169.12 yuan, 1, accounting for 39.68% of the sales revenue of 58 companies; net profit of 2 billion 943 million yuan, accounting for 84.01%; the year-on-year growth rate of income and profit was 43.86%, 53.57%, higher than the average level of the plate and 43.86% percentage points.

The average gross profit margin of key companies is 34.04%, and net assets yield is 9.83%, up 3.06 and 1.3 percentage points respectively.

Compared with the average level of the plate, the gross profit margin and return on equity of key companies are 13.28 and 4.84 percentage points higher respectively.

2.2. profitability: the downstream is obviously better than the upstream and downstream clothing companies. The profitability of the company is significantly better than that of the upstream textile companies.

Among them, the top four enterprises with profit margins, the birds, Ordos, YOUNGOR and the seven wolves have their own clothing brands and sales channels, reflecting the brand and channel's role in enhancing the added value of products.

On the other hand, the cost of terminal selling enterprises is relatively high. The rate of first rate of the gross profit rate is 33.54%, which is the highest among 12 enterprises.

In the background of the downturn in the upstream industry, A, a leading subsidiary of the sub industry, has achieved profitability through technological innovation, with the gross profit margin of 29.51% and 29.04% respectively, much higher than that of other industries in the same industry.

In addition, Lu Tai A also showed excellent management ability. The 8.59% period cost rate was the lowest among the key companies, and the net assets yield was 11.30%, ranking second.

2.3. growth: domestic garment enterprises are growing at a high speed, and the growth rate of export enterprises is decreasing.

The first quarter revenue growth of the seven wolves and the wedding birds were 151.61% and 81.82% respectively, the highest among the key companies. The Ordos, YOUNGOR, Zhonghe and other companies had acquired mergers or assets reorganization in the past year, and the income growth was faster than the other factors because of the combined factors.

The export oriented companies such as URI, A and so on are affected by the appreciation of the local currency and the decline of external demand, and the income growth rate is relatively low.

The shares of Hong Kong group were stripped of listed companies because of their poor profitability. The income dropped by 19.62% over the same period last year.

As the cost of raw materials and labor increased rapidly, the profit growth rate of the key companies in the first half of the year was mostly lower than that of the revenue growth. Among them, the total profit of 4 companies, such as Feng Zhu textile, Xun Xing shares, Hong Kong shares and Fu Shi shares, had a negative growth compared to the same period last year.

It is worth noting that Feng Zhu textile announced a huge loss of investment in stocks and funds, which is one of the important reasons for its year-on-year decline in profits.

In the current capital market downturn, companies with more financial assets still need to be cautious.

2.4. business efficiency: the sub industry difference is obvious. The key companies have different operating efficiency because of their different operating characteristics.

The seven wolves use franchising as the main business mode, and their casual wear products are updated rapidly with the seasons. Therefore, accounts receivable turnover rate and inventory turnover rate are relatively high. While the birds in the same clothing industry have a higher proportion of self-employed shops, the sales of their clothing products are slower than those of casual wear, and accounts receivable turnover and inventory turnover are also lower.

The stock of YOUNGOR and Hong Kong shares is larger than that of real estate business, and inventory turnover is only 0.35 and 0.28, ranking the last two in all key companies.

2.5. debt paying ability: there is no risk of debt repayment. Some companies have a higher debt ratio because of larger investment in new projects (or real estate business).

Companies with a debt ratio of more than 60% have YOUNGOR, Hong Kong Group shares and shares and the highest share and asset liability ratio is 65.76%.

The lower liquidity ratio and quick ratio are those of Lu Tai and A, which are mainly caused by short-term liabilities.

The above companies have better credit and no solvency risk.

Recently, the IPO and refinancing companies in the capital market have shown strong solvency due to the fact that the funds have not yet been used and the cash is abundant.

Such as Shandong Ruyi, good news birds, seven wolves, Weixing shares and so on.

However, from another angle, we can see that financial leverage has not been fully utilized. 3. investment recommendations, through statistical analysis of the interim financial data of textile and apparel listed companies, found that the performance of key companies we covered is far better than the overall level of the plate.

Among them, seven wolves, Lu Tai A, Weixing share financial indicators ranked in the forefront of key companies, and our recommended ratings coincide.

We continue to look forward to the domestic sales clothing companies with brand and channel at the terminal of the industrial chain, as well as the leading companies with obvious technological advantages.

To maintain the "overweight" rating of seven wolves, Weixing shares, Lu Tai A and American bond clothing.