Weiqiao Textile (02698) Net Profit Increased By 276.1% In The First Half Of The Year, Greatly Exceeding The Performance Forecast Level

Weiqiao textile (02698) released the mid-term performance announcement of 2021 on August 13. During the reporting period, the company's revenue reached 7.498 billion yuan, an increase of 38.1% over the same period last year. The gross profit increased by 114.6% over the same period last year to about 880 million yuan, mainly due to the significant increase in the gross profit and gross profit margin of textile sales in the first half of the year. The gross profit of textile business reached 542 million yuan. At the same time, the power business continued to maintain a stable profit. Compared with the same period last year, the company's net profit increased by 276.1% to about 583 million yuan. The earnings per share was 0.49 yuan.

Affected by the gradual recovery of domestic and foreign textile demand and consumption. The sales volume and sales price of cotton textile products of the company increased significantly year on year. During the reporting period, the revenue of textile business was about RMB 5.518 billion, up 53.6% year on year.

Power business continued to maintain stable operation. During the reporting period, the power and steam revenue was about 1.980 billion yuan, an increase of about 7.8% compared with the same period last year.

Looking forward to the second half of the year, the management is optimistic about the situation of the textile industry. With the replenishment demand of domestic brands and the continuous recovery of overseas demand, it is expected that orders will continue to improve in the second half of the year. The group will strengthen industrial upgrading innovation and green development, increase investment in intelligent and automation technology transformation, and actively promote the research and development of new technologies, new materials and new products.

Under the background of obvious recovery of textile industry, the competitive advantage of leading enterprises in the industry will be further highlighted. The company has good fundamentals and low valuation, which is expected to bring excessive returns to investors.