Is China's textile industry turning point going?

According to the latest statistics, in the third quarter, China's 44 textile manufacturing enterprises realized 17 net profit attributable to shareholders of the parent company as compared with the same period of last year. A total of 55 A-share listed companies in the textile industry and apparel industry of Shenyin Wanguo State disclosed a forecast for the third quarter, and there are 28 textile and apparel companies with a year-on-year increase in net profit, accounting for 57.14%. In addition, another 25 companies reported bad performance.

“Although the PMI for the domestic textile industry remained below 50 for the entire third quarter, and there has been no significant improvement, taking into account the lower base of the same period last year and the inventory of high-priced raw materials of manufacturing companies gradually digesting, the same year-on-year comparison of textile manufacturing will be held in the second half of the year. Slightly better than the first half of the year.” Orient Securities analyst analysts said that the current decline in the performance of listed companies in the textile manufacturing industry in the third quarter narrowed slightly, although the growth rate of earnings and earnings of listed companies in the apparel industry was generally not as good as in the first half of the year. The growth rate of net profit is still expected to be higher than the revenue growth rate.

After interviewing a number of companies, it was learned that in the past year, the difficulties in the market and diplomacy, the sales of the textile industry has gradually declined, and inventory pressure has, to a certain extent, constrained the development of the company.

“The average inventory of enterprises in the textile manufacturing industry is declining. The data shows that the cycle of destocking by enterprises is nearing completion.” Some organizations pointed out when reviewing the third quarter report of the manufacturing industry that the destocking of the textile manufacturing industry is coming to an end and will enter Recovery phase.

"The main task now is to handle inventory, inventory pressure has seriously affected the profitability of enterprises and the power of reproduction." Wenzhou, a textile company official said after attending the exhibition, with the recovery of sales in the recent period, the pressure of business inventory is Slow down.

"The data shows that the inflection point of China's textile manufacturing industry has arrived and that the end of the year will usher in a wave of warming in the textile industry," said the relevant analyst.

Although a number of agencies and media have put forward the view that the textile industry has bottomed out, some stakeholders have expressed different opinions.

In an interview, the manager of an international cooperation department stated: “With the continuous increase in the cost of Chinese domestic textile production, China’s textile manufacturing industry is facing a full range of industrial upgrading and structural adjustment, and the production of textiles is bound to shift from the southeast coastal areas to production costs. In the lower middle and western regions or other countries, this shift has only just begun at the current stage and will inevitably go through a long and painful process. At the same time, in addition to the cost of production, there are many unfavorable factors that affect the expansion of the scale of textile production. China's textile manufacturing industry not only has no turning point, but also continues to shrink.

"I am standing on the overall situation of the industry to analyze." The staff member believes that many agencies believe that the inflection point has already arrived. This is only a short-term analysis. In the long-term, apart from its many bad news, the renminbi appreciation and other external factors. It is also important.

Whether the inflection point of China's textile industry will come in the near future is inconclusive, but the outlook for China's textile industry is still worth looking forward to.

“Although the current situation in China's textile export orders is facing difficulties, the home textile industry still has a lot of room for growth. The Chinese national textile industry is showing stronger and stronger players, and the weaker players will be phased out of integration.” Yang Zhaohua, president of the Home Textiles Industry Association, said in an interview recently that companies need to make more money in this market and rely more on intelligence. As consumers' consumption habits change, textile companies must also accelerate the transformation of traditional sales channels. If textile companies still only stay in direct sales and franchising modes, it will be very difficult to occupy the market.

“Our inspection shows that from January to June of this year, China's online sales of textile products increased by 216%. This increase is very alarming.” Yang Zhaohua believes that, obviously, online sales must cause home textile enterprises to attach great importance. Over the past two years, the growth in online sales of home textile products has been the fastest, indicating that the online sales prospects are very broad.