The textile and clothing industry is picking up quickly when the peak season comes

On October 16, textile and clothing concept stocks were active. By the end of the day, the leading shares had risen by the limit, and Hasen shares and Kute Smart had risen by more than 5%.

According to the statistics of the General Administration of Customs, China's textile and clothing exports in September reached 26.2 billion US dollars, a year-on-year decrease of 4.8% (0.8% year-on-year increase in RMB), further narrowing the decline by 3.6 percentage points, and the market was significantly warmer than in previous months. The agency said that the performance of textile and clothing enterprises is expected to improve as the overseas destocking comes to an end and the four quarter sales peak season is superimposed.

Prosperity index rises

On October 16, Special Step International announced that its retail sales (including online and offline channels) recorded double-digit year-on-year growth in the third quarter, and the channel inventory turnover was four and a half months to five months.

On October 12, Anta Sports announced that in the third quarter, the retail amount of Anta brand products under the company realized positive growth compared with the same period in 2022; The retail sales of FILA brand products recorded a positive growth of 10% - 20% over the same period in 2022, and the retail sales of other brand products recorded a positive growth of 45% - 50% over the same period in 2022.

The prosperity monitoring results of the circulation branch of the China Textile Industry Federation show that the prosperity index of the textile and clothing professional market rose in September. The prosperity index of managers of the national textile and clothing professional market was 53.87, up 2.31 percentage points from August; The business climate index of professional market was 52.67, up 2.37 percentage points from August.

In terms of exports, in the first three quarters of this year, China's textile and clothing exports totaled 223.15 billion US dollars, a year-on-year decrease of 9.5% (3.5% in RMB). Among them, textile exports reached USD 101.92 billion, down 10.3% year on year (4.2% in RMB); Garment exports reached US $121.23 billion, down 8.8% year on year (2.8% in RMB).

Overseas destocking is coming to an end

Industry insiders said that at present, the overseas destocking progress is good, and the fourth quarter is the peak sales season of the industry, and the performance of textile and clothing enterprises is expected to improve.

Huali Group is engaged in the development, design, production and sales of sports shoes. It is the world's leading professional manufacturer of sports shoes. Its sports leisure brands include Nike, Converse, Vans, Puma, Under Armour, etc. The company said that from the current order situation of the company, the de stocking of many sports brands is nearing the end, and the order of some brands has improved.

Guangfa Securities Research Report shows that China's textile manufacturing enterprises are mainly engaged in export business. In the first three quarters of 2023, except for a few sub industries such as wool, which have a high degree of popularity, other sub industries are mostly affected by downstream overseas brand customers who reduce orders or delay orders, and the expected performance is under pressure. The performance of relevant listed companies is expected to improve with the smooth de stocking of overseas brands.

According to the research report of China Merchants Securities, the demand of clothing market in Europe and the United States in the third quarter of 2023 is significantly better than that in the first half of the year. The leading clothing brands' sales performance and stock removal progress are good. It is expected that the pace and scale of subsequent orders will gradually recover. Everbright Securities believes that the sales growth rate of textile and clothing enterprises in the fourth quarter of this year is worth looking forward to as the fourth quarter sales peak season, superimposed on the low base in the fourth quarter of last year.

key word: Textile clothing Prosperity index Specialized market stock