Listed Textile Companies Report Gains in Q3

With the major listed companies releasing their third quarterly report of 2010, the performance of listed textile companies are also starting to appear. Although those companies have suffered from RMB appreciation and soaring cotton price, most of them maintaine good gains.

Some companies even report 10%~30% reveune gains in Q3, including FUANNA, Luolai Home Textile, Mendale Home Textile, Meters Bonwe, Laofengxiang, Toroad, Saturday and Weixing Group. Manufacturing related companies generally have better performance than estimated. Brand related companies keep stable growth. Home textile companies witness quick extension. While clothes companies gain profits from domestic sales.

Different sections in textile industry have different performance. Clothes companies feature with consumption upgrading and brand added-value, such as septwolves, Hongdou and Baoxiniao. Of which, septwolves report 1.578 billion yuan reveune in first nine months, rising 8.37% from the same period last year. The profit was 180 million yuan, rising 35.9%. And the sales reveune and net profit grew 4.86% and 47.87% respectively in third quarter. The recent brand campaign and sales channel extension are major reasons for this rapid growth. Septwolves anticipate a 20%~40% growth in profit this year.

It is anaylzed that the upstream industries, like chemical fiber industyr make profit through neutralizing the cost rising with higher sales prices and active domestic market consumption. In the cotton textile related companies, Henan Xinye Textile ranks No. 1 in profit growth. Xinye reports that its sales reveune in third quarter is 607 million yuan, rising 23.35% year over year. From Jan. to Sep., its gross income is 1.67 bilion yuan, rising 28.74%; with net profit 63.94 million yuan, rising 232.95%. The main reasons for profit soaring are bigger sales volume and higher prices. Xinye anticipates its net profit might gain 1.8 to 2 times from last year.

source:CTEI