Industry as a whole: Main business growth rate is steady and profitability has rebounded
The 2015 annual reports of listed companies in the textile and apparel sector and the first quarter of 2016 have been disclosed. On the whole, due to factors such as rising labor costs, long-term appreciation of the RMB, and competition from low-priced products such as Vietnam and Bangladesh, the overall business environment of the industry is not very good Optimistic; listed companies actively adjust product structure and improve terminal marketing strategies, and the industry's main business growth rate is basically stable; in the context of the decline in the price of cotton-based raw materials, the efficiency improvement driven by mechanization, and the continuous improvement of product structure, the overall gross profit margin of the industry stable.
The main business growth rate is stable, and the outdoor products sub-industry growth rate is among the top
In 2015, the textile and apparel industry achieved a main business of 190.416 billion yuan, a year-on-year increase of 5.49%; in the first quarter of 2016, it achieved a main business of 47.09 billion yuan, a year-on-year increase of 9.28%. The overall performance of the outdoor products industry in the sub-industry is relatively outstanding, and the main business growth rate ranks first in each sub-industry, followed by E-commerce industry。
The gross profit margin is basically stable, and the sales expense ratio remains high
In 2015, the overall gross profit margin of the textile and apparel industry was 26.58%, a year-on-year increase of 1.4 percentage points; in the first quarter of 2016, the gross profit margin was 27.91%, a year-on-year increase of 0.68 percentage points. The gross profit margin of the industry has been basically stable since the significant increase in the fourth quarter of 2014; the sales expense ratio remained at a relatively high level during the same period.
Decline in profitability, and obvious differentiation in sub-industry performance
In 2015, the textile and apparel industry achieved a net profit of 12.812 billion yuan attributable to shareholders of listed companies, a year-on-year decrease of 1.89%; terminal demand was not good, the overall profitability of the industry declined, the performance of various sub-industry divergences, and the profitability of the e-commerce industry improved significantly. Profits of other sub-sectors have declined to varying degrees.
The scale of accounts receivable and inventory has increased, and cash flow has grown steadily
In 2015, the overall accounts receivable scale of the textile and apparel industry was 103.07 billion yuan, an increase of 18.78% year-on-year. The main reason was the expansion of revenue during the same period and the increased support of listed companies to downstream customers; the overall inventory scale of the industry during the same period was 256.604 billion yuan. , An increase of 10.43% year-on-year. The net cash flow has grown steadily.
Maintain the industry's "optimistic" rating
Chinese branded apparel has entered the buyer's market, and most of the branded apparel companies' business models that adapt to the seller's market cannot adapt to the current competitive environment of the buyer's market, and the competition among branded apparel companies has become increasingly fierce. The competition of international brands and the diversion of e-commerce channels have intensified the competition in the various sub-sectors of brand apparel. The competitive advantages of enterprises have become more obvious, and the market share has gradually expanded. In addition, on the basis of doing a good job in the main business, the enterprise will graft the new economy, carry out transformation and upgrade, and enhance the competitiveness of the enterprise. We maintain the previous investment logic, the strong brand apparel company Hengqiang, in the near future we focus on recommending: Semir apparel, Hailan Home, Luolai Home Textiles, Hangmin shares and Duohuai. Risk warning: the risk of raw material price fluctuations; systemic risk.
