China Customs Express data shows that in the first quarter of 2021, my country’s textile and apparel exports amounted to US$65.11 billion, a year-on-year increase of 44%, compared with the same period in 2019. An increase of 15.6%, with an average annual growth of 7.5% in the two years.
But the editor discovered an incredible problem:
The export market has been so hot this year , fire, fire, but market feedback still shows us that it is miserable, miserable, miserable! On one side is the hot foreign trade situation, on the other side is the pessimistic textile and apparel market situation. Which one is wrong and which one is right? Who is deceiving whom? Who is eating the profits of the textile and apparel market?
2% of the profits are shared by 89.58% of the companies
98% of the money Where have they all gone? They earned it!
Most of the annual reports of listed companies have been released recently. Statistics show that 192 listed companies in the Shanghai and Shenzhen stock exchanges mainly engaged in textile and apparel achieved a total net profit of 75.422 billion in 2020. Yuan, a year-on-year increase of 20.01% compared with the previous year, and the growth rate increased by 4.32 percentage points compared with the previous year. Among them: 89 companies achieved year-on-year net profit growth, accounting for 46.35% (a decrease of 0.24 percentage points from the previous year).
There are 20 companies with net profits exceeding 1 billion yuan in 2020 (accounting for 10.42%). Hengli Petrochemical (600346.SH), Rongsheng Petrochemical (002493.SZ) and Youngor (600177.SH) ranked among the top three with net profits of 13.495 billion yuan, 13.372 billion yuan and 7.207 billion yuan respectively. The list of 20 listed textile companies with net profits exceeding 1 billion in 2020 is as follows:
The statistics in the above table show that Hengli Petrochemical, Rongsheng Petrochemical, Youngor, Zhejiang Longsheng, Wenjian Medical, Oriental Yuhong, Sinoma Technology, Heilan Zhijia and other 20 leading large companies with a net profit of more than 1 billion in 2020 performed very well. The average net profit growth rate reached 51.61% year-on-year, and the profit accounted for 98.33% of the total annual net profit of the entire listed textile company. Among them, the chemical fiber manufacturing industry is the largest, with 6 companies, accounting for 50.95%; the industrial textile industry has 5 companies, accounting for 17.44%; and the clothing manufacturing industry has 3 companies, accounting for 13.75%.
The remaining less than 2% of profits are shared by small and medium-sized listed textile companies, which account for 89.58%.
It can also be seen that although 2020 was affected by unfavorable factors such as the Sino-US trade game and the new crown epidemic, the leading large enterprises in the industry relied on their own capital scale to , technological innovation capabilities, market and brand influence, government support and other favorable conditions, the average annual revenue growth exceeded 50%. At the same time, against the background of steady revenue growth of leading enterprises in these industries, many small and medium-sized enterprises are likely to encounter difficulties and unsatisfactory performance.
Leading companies are looking at the right time to complete the project
For small factories and downstream Manufacturers’ market harvest
And this situation appears in all aspects of the entire textile industry chain.
In the first quarter ending March 31, 2021, 96 listed textile and apparel companies in Shanghai and Shenzhen stock exchanges achieved operating income of 65.124 billion yuan, attributed to the parent company The net profit was 5.470 billion yuan. There is no doubt that leading manufacturers such as Heilan House, Youngor, Huali Group, Semir Clothing and Blum Oriental are still among the best.
According to statistics, the first-quarter performance of many leading polyester listed companies was Not a bad performance. Among the 26 listed companies that disclosed their first quarter reports this year, 20 companies saw a year-on-year increase in net profit, 17 of which had an increase of more than 100%; 4 companies turned losses into profits year-on-year; only 2 companies suffered losses. Suzhou Longjie, Hengtian Hailong, Youcai Resources, and Xinfengming ranked among the top four in net profit growth, reaching 4339.77%, 2221.07%, 1060.63%, and 749.93% respectively.
Benefiting from the cyclical nature of the industry, chemical fiber companies have relied on the rise in volume and price of their main products to drive significant growth in performance.
In terms of polyester filament, the leading company Xinfengming released its first quarter report for 2021 after the market closed on April 26. The company achieved business in the first three months of this year. Revenue was 10.817 billion yuan, a year-on-year increase of 113.57%; net profit attributable to shareholders of listed companies was 497 million yuan, a year-on-year increase of 749.93%. The company’s main products are polyester filament and polyester staple fiber. The average price of filament in the first quarter of this year increased by 22% compared with the fourth quarter of last year, and its profitability is considerable.
In addition, many listed companies with advantages in the entire oil refining-chemical fiber industry chain have considerable “money” prospects. Rongsheng Petrochemical disclosed its first quarter report. In the first three months of this year, the company achieved operating income of 34.581 billion yuan, a year-on-year increase of 64.26%; net profit attributable to shareholders of listed companies was 2.622 billion yuan, a year-on-year increase of 113.86%. Hengli Petrochemical achieved operating income of 53.23 billion yuan in the first quarter, a year-on-year increase of 78.8%; net profit attributable to the parent company was 4.11 billion yuan, a year-on-year increase of 91.8%. Oriental Shenghong expects to achieve a net profit attributable to shareholders of listed companies of 500 million to 660 million yuan in the first three months of this year, an increase of 153.79% to 235% over the same period last year.
Statistics on supporting upstream equipment of major listed companies in the polyester industry:
At present, domestic leading polyester companies have many supporting facilitiesThe upstream raw materials realize the industrial structure of “one drop of oil, two threads”. In the whole industrial chain of polyester new materials, the middle and lower reaches are laid out with “large-scale equipment, large-scale production capacity, structural integration, advanced technology, green The high-quality and efficient production capacity structure characterized by “environmental protection and complete supporting facilities” achieves a unique balanced and coordinated development of the entire industry chain from large-scale refining to PX, PTA, and polyester (PET) production capacity. Integrated development improves the company’s comprehensive operational advantages. , while strengthening profitability, it also enhances the ability to withstand the risks of operating fluctuations.
From January to March 2021, the efficiency of the chemical fiber industry has continued to rebound. Chemical fiber enterprises above designated size achieved operating income of 215.3 billion yuan, a year-on-year increase of 48.5%; total profits were 13.7 billion yuan, a year-on-year increase of 688.5%; operating income profit margin was 6.34%, an increase of 3.04 percentage points from the end of 2020. But looking at other small and medium-sized chemical fiber companies, the moodiness of the domestic textile market in recent years has really left them clueless. What’s even more frightening is that despite unstable demand, volatile prices, and high costs, chemical fiber factories are still desperately increasing their production capacity. The market shares of the top five companies in the polyester yarn industry in the next two years. Almost all of the new production capacity in the next two years will come from these industry leaders. In the next two years, the polyester yarn industry will add a total of 7.77 million tons of production capacity. The top five manufacturers in the industry alone will contribute 6.4 million tons of additional production capacity. Leading companies are seizing the right opportunity to complete the market harvest of small factories and downstream manufacturers!
As industry concentration increases, leading companies that occupy top resources will undoubtedly have an advantage. This is a reshuffle period for the chemical fiber industry. It is also a painful road for industrial transformation and upgrading. It is also a life-or-death disaster for small and medium-sized chemical fiber companies.
Leading companies have more standardized management, introduce more advanced equipment, invest more in research and development, and have huge capital support… They have a head start in this arms race.
In addition, the “Tencent Board” and “Alibaba Board” in the Internet industry have slowly been copied into the textile market, and some leading companies control textile production capacity and resources. , will form large interest groups. From then on, small and medium-sized enterprises must choose to join in these sectors, otherwise it will be difficult to have market space. Those small chemical fiber companies with low production efficiency and weak competitiveness are in danger of being swallowed up by “big fish”. Therefore, for small and medium-sized chemical fiber companies, they must follow the general trend of industrial transformation and upgrading and quickly enhance the core competitiveness of the company. is the key.
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