The Growth Of Export Volume Declined, And The Differentiation Pattern Of Spinning And Weaving Industry Appeared.

2015

Domestic and foreign demand continued to slump, and external demand recovered in the first quarter of 2016.

The total retail sales of GDP and consumer goods in China continue to decline for 10 years.

In the first quarter of 2016, the total retail sales of consumer goods grew by only 9.7%, up 0.4 percentage points from 2015.

From the macro demand of production enterprises, the growth rate of export volume of textile and clothing products in 2015 showed a negative growth in 2015 against the background of the negative growth of the export volume for the first time in many years. In March 2016, foreign exports began to pick up.

On the other hand, China's cotton price has basically stabilized in the downward trend, and the difference between domestic and foreign cotton prices is also gradually narrowing.

In the context of the depressed demand for the environment, garment listed companies are accelerating differentiation and concentrating on a few leading brands.

The total operating revenue of the listed companies increased by 10.8% over the past 15 years, and the net profit increased by 8.3% over the same period. However, if we remove the two big white horse leaders from Hai Lan and Semir, the total revenue of the listed companies will increase by 1.6% over the 15 years, and the net profit of the listed companies will be reduced by 37.1%.

The similar pattern was basically maintained in the first quarter of 16.

Other sub sectors of brand listed companies are affected by the prosperity of their respective industries.

Including footwear and home textiles listed companies in 15 and 16 years, the Q1 performance was depressed by the downturn in demand, while the sports and underwear sub industry listed companies benefited from the demand of the fine molecular industry, and maintained a good growth momentum in 15 years and 16 years Q1.

In the context of production enterprises, with the slowdown in the growth of export volume, the industry also has a pattern of differentiation.

In the context of the decline in export growth and the steady downward trend in cotton prices, the performance of the cotton textile listed companies began to rise steadily.

The operating income of the listed companies increased by 3.6% compared with the same period last year, and net profit increased by 5.2% compared with the same period last year. While other enterprises, including wool spinning, dyeing and printing (at the same time being influenced by environmental policy tightening), and the income of Listed Companies in the excipient industry showed a slowdown.

Although other textile and apparel companies have begun to expand their second main businesses, some textile and garment businesses are in normal operation.

In 2015, the operating income of the listed companies increased by 1.9% compared with the same period last year, and net profit fell by 7.5% compared with the same period last year. Its textile and apparel business is still at a steady state.

16 year industry strategy: valuations and performance growth do not match, and opportunities are focused on new trends in industry change.

Notable targets include: focus on well-known IP peripherals and free cash flow realisations, the location of Antarctic business providers, the Huafu color spun that is involved in the industrial Internet and the flexible supply chain platform, as well as the Semir industry as the industry leader actively adjusts to meet the new trend.