To support the fight against the epidemic, many garment enterprises with production conditions have been transformed into production lines, production masks and protective clothing. Affected by this, recently, a number of "cross-border medicine" clothing enterprises share prices are rising.
In February 10th, 002154.SZ announced a daily limit of 3.12 yuan, an increase of 9.86%, which has been trading 1 times in recent years. According to the evening announcement in February 9th, the news bird has transformed the production line into the production of the isolation garment, and actively applied for the record of medical device production. At present, the controlling shareholder of Shanghai Bao bird Clothing Co., Ltd. (hereinafter referred to as "Shanghai Bao bird") has obtained the "first class medical device record voucher" and "the first class medical device production record voucher", the production of the first batch of isolation clothing has been delivered.
"After understanding the needs of the Shanghai Commission, the company first responds to the establishment of a working group on isolating clothing, and the first batch of 60 workers rushed to the post to transform the garment production line into a non medical disposable isolation garment production line." The official responsible for bird adornment said that it took two days to rebuild the production line. At the same time, preparations for sample inspection were carried out, with an estimated daily output of more than 3000 sets.
Medical protective clothing is in short supply, and all kinds of garment enterprises have changed their production.
At present, protective clothing enterprises have gradually resumed work to increase production capacity, but the protective clothing of front-line medical personnel is still in short supply. Cao Guangjing, vice governor of Hubei, pointed out that in February 7th, the minimum demand for protective clothing in Hubei was 59 thousand and 400 sets, with a total supply of 48 thousand and 500 sets, and a gap of 11 thousand.
In order to alleviate the shortage of protective clothing, all kinds of clothing and textile enterprises are turning to protective clothing production, including red beans, three guns, Ordos, Li Lang, mercury home textiles, and many other policies have been put forward. For example, in the policy of "benefit enterprises" issued by Yancheng City and Suqian of Jiangsu, the enterprises that are temporarily transferring production protection products in epidemic prevention and control work in related industries such as garment production shall be given 15% subsidy for upgrading and transformation. In addition, government departments also issued relevant preferential tax policies.
In February 6th, men's clothing enterprise red bean shares issued a notice, once again said that the company will be in the "Jiangsu emergency medical supplies protective clothing, mask emergency production and use of approval documents" after the production of disposable protective clothing for medical purposes. The products will be subject to the unified allocation of the government and not to be sold externally.
Hong Kong Group expects that the production of medical protective clothing after mass production is about 60 thousand units / month, and the sales revenue involved is about 12 million yuan / month. Compared with the 2 billion 483 million yuan of operating income in 2018, this part of the income is relatively small. Red beans said that the main purpose of the business is to fulfill the social responsibility of listed companies and support the government's epidemic prevention and control work.
The industry believes that the red bean shares involved in the concept of a new virus protection, and therefore the market is optimistic about the emergence of a transaction. It is understood that, on February 4th, 5 and 6, the closing price of red bean shares rose for 20% consecutive days in three consecutive trading days. According to the relevant provisions of the Shanghai stock exchange rules, it is a situation of abnormal fluctuations in stock trading. As of February 6th, the static P / E ratio of red beans reached 60.93 times, which was significantly higher than the industry P / E ratio.
In January 31st, the Shanghai home textile company received an announcement from the letter Committee of the city of Hong Kong. It urgently changed 10 protective clothing production lines and put them into production. In February 2nd, the protective clothing was successfully tested and tested by professional agencies. The 3 day was formally put into operation. The daily average production capacity is 1000 sets, and the maximum daily output is expected to reach 2000 sets. Li Laibin, chairman of the home textiles company of mercury, said that the raw materials needed for production were adjusted by the government, and the protective clothing produced by the government was also allocated by the government.
On the two day of February 4th -6, the total share price of the mercury home textile rose by more than 22%. YOUNGOR also rose sharply. Since 4, YOUNGOR's closing price has been closed for three consecutive days on the annual line (250 day moving average). In January 27th, YOUNGOR has said that the group's R & D team is working hard to develop new respirators for virus prevention and will be put into production immediately after successful R & D.
In addition, some clothing enterprises deploy skilled workers from the production line to help medical enterprises produce protective products. For example, Shandong Ruyi group sent the backbone of textile technology in January 31st to support the production of protective clothing for kinder medical equipment company.
Conversion is not profitable, and the industry is speeding up.
Industry experts believe that for clothing and textile enterprises, conversion has limited effect on improving overall performance. But in the long run, with the increase of public safety consciousness, the demand for masks and other materials is increasing. Investors should also be cautious. The rise in the share price of protective clothing and respirators is actually a herding effect, which does not exclude some enterprises from wasting heat.
From the estimated sales volume of red bean stock protection clothing, the proportion of the company's total revenue is small, which has little impact on the performance. In addition, a number of garment enterprises responsible person responded to the reporters mentioned that during the epidemic, masks and protective clothing were in response to the national call, not for profit consideration.
Jiangsu sunshine, a branded brand enterprise, said that the company is now producing general protective clothing, which can be used for police patrols and high-speed port inspection. The products will be allocated by the government and not sold externally.
On the other hand, affected by the epidemic, most garment enterprises are facing severe business pressure when they close their stores and suspend business. It is reported that spring is the peak season for brand clothing sales, and sales usually reach -2 at the end of January at the end of January. During the epidemic period, the offline sales can not be normal, which will cause the enterprises to bear heavy losses.
Prior to that, Nike said in its closing shop statement that its operation in China will be "materially affected", and the earnings report released in March will cover the relevant data. Another clothing brand, Levi 's, also shut down half of the Chinese stores. The company's chief financial officer, Harmit Singh, Levi Strauss, admitted that Levi' s had about 3% of its sales every year from China, and its performance in the short term will be affected.
The key Road Sports Consulting Co., Ltd. CEO Zhang Qing said that the current flow of personnel is relatively stagnant, clothing enterprises will undoubtedly become a huge inventory pressure, which will test whether the enterprise can establish an effective quick response mechanism. Many front-line brands have built up a fast reverse system, which will not store a lot of materials, and the inventory loss of flexible enterprises will be smaller, but losses are inevitable.
Dongxing Securities pointed out that, unlike the SARS period in 2003, the domestic apparel online sales accounted for nearly 1/3. In the short run, clothing consumption will be under pressure. But in the long run, the industry will enter the stock market. The risk of small and medium-sized enterprises will be greater and the advantages of leading enterprises will be obvious. The epidemic will accelerate the industry reshuffle.
Source: blue whale producer: Jiang Jiao