12 Chinese listed apparel companies achieve profits in the first quarter

Various industries have ushered in a moderate recovery momentum after suffering from the impact of the COVID-19 for three years. The performance of listed apparel companies in the first quarter also improved significantly and we have selected 12 major companies as samples.

The operating income of HLA is the highest in the first quarter, about 5.682 billion yuan, a year-on-year increase of 9%. Youngor and Semir rank second and third places, with operating income of 3.266 billion yuan and 3.002 billion yuan respectively, a year-on-year decrease of 56% and 9.3%. GRN and Meters/bonwe ranks the last, about 494 million yuan and 407 million yuan, a year-on-year increase of 33.8% and a decrease of 13.4% respectively.

The revenue growth of Youngor, Semir, Peacebird and Meters/bonwe declines year-on-year, and Youngor sees the largest decline, mainly due to the impact of the real estate development cycle. The revenue and net profit of real estate sector falls by 77.77% and 91.55% respectively.

The net profit of Youngor is the highest, about 867 million yuan, a year-on-year decrease of about 59%, HLA and Semir rank second and third, with net profit of 803 million yuan and 311 million yuan, a year-on-year increase of 11.1 %, around 48.9% respectively. Hodo and GRN rank last in net profit, with 31.4577 million yuan and 7.8373 million yuan respectively. In terms of net profit growth, only Youngor declines year-on-year, and the remaining 11 companies all achieved positive growth.

In terms of net profit after deduction of non-recurring gains and losses, Youngor is the highest, about 806 million yuan, a year-on-year decrease of about 60.9%, which is followed by HLA and Semir, about 791 million yuan and 292 million yuan, an increase of 9% and 57.8% year-on-year. Meters/bonwe and GRN rank last, with 20.8614 million yuan and 5.3959 million yuan respectively. Judging from the growth rate, Youngor, Joeone and Ellassay declines year-on-year, and the remaining 9 companies achieve positive growth.

According to the net profit and net profit after deduction of non-recurring gains and losses, all 12 companies are profitable without losses in the first quarter. Among them, the net profit after deduction of non-recurring gains and losses of Lancy and Meters/bonwe turns from negative in the first quarter of last year to positive in the first quarter of this year.

From the perspective of sales gross profit margin, SAINT ANGELO ranks the top place at about 66.07%, while Ellassay and Joeone rank second and third at 65.51% and 60.53% respectively. GRN follows with gross profit margin of 18.36%.

In terms of sales net profit margin, Youngor ranks first at about 28.39%, SAINT ANGELO and HLA rank second and third at 20.14% and 13.98% respectively, which is followed by GRN at about 1.12%. Most companies achieve significant growth momentum.

Youngor's inventory turnover days rank first, about 989.01 days, Ellassay and Meters/bonwe rank second and third, respectively 286.9 days and 254.6 days. Hongdou is the lowest, about 37.7 days. Generally speaking, the lower the inventory turnover days, the lower the capital occupation rate of the inventory and the stronger the product liquidity.

In terms of debt to assets ratio (total debt/total assets*100%), Meters/bonwe is the highest at 91.75%. HLA and Youngor rank second and third, respectively 51.98% and 50.23%. SAINT ANGELO has the lowest debt ratio, about 28.89%. Generally speaking, the lower the debt to assets ratio, the stronger the solvency, but too high or too low debt ratio may not be optimal for an enterprise, and it is the most beneficial standard for enterprise development to control at 40-60%.

The overall operation and development of the 12 listed apparel companies in the first quarter of this year is good. Among them, Youngor is affected by the real estate cycle, but the overall situation of the other companies has improved. In the first quarter, except for the slight decline in the sales net profit margin of Youngor and Hodo, other companies general have seen growth. In the first quarter, all the 12 companies have achieved profits, without loss-making.