Is there good profit of 12 Chinese listed apparel companies in H1 2023?

After the adjustment of epidemic prevention policies at the end of 2022, apparel companies generally have high hopes for a significant recovery this year. How has the profitability of those listed companies improved in H1 of 2023? Is it consistent with expectations? This article selects 12 major companies as samples, providing a glimpse of the situation.

HLA had the highest operating income in H1 of 2023 of about 11.199 billion yuan, a year-on-year increase of 17.7%. Youngor and Semir ranked second and third, with operating incomes of 5.872 billion yuan and 5.56 billion yuan respectively, a year-on-year decrease of 38.5% and 1.4%. GRN and Meters/bonwe ranked last, with approximately 715 million yuan and 558 million yuan respectively, a year-on-year increase of 9.8% and a decrease of 22.8%.

In terms of revenue growth rate, 7 companies experienced year-on-year growth, while 5 companies, including Younor, Semir, Peacebird, Hodo, and Meters/bonwe, experienced a year-on-year decrease. Youngor had the largest decrease, followed by Meters/bonwe.

Youngor had the highest net profit of 2.065 billion yuan, a year-on-year decrease of about 34%. HLA and Semir ranked second and third, with net profits of 1.679 billion yuan and 516 million yuan respectively, a year-on-year increase of 31.6% and about 393.9%. Meters/bonwe and GRN ranked last, with 10.2639 million yuan and -18.1446 million yuan respectively. Among them, GRN had a negative net profit, while the remaining 11 companies were all positive.

In terms of non-recurring net profit (net profit excluding non-recurring gains and losses), Youngor had the highest value of 1.939 billion yuan, a year-on-year decrease of about 35.1%. HLA and Semir ranked second and third of 1.663 billion yuan and 480 million yuan respectively, a year-on-year increase of 31.3% and 1818.2%. Meters/bonwe and GRN ranked last of -24.0914 million yuan and -29.226 million yuan respectively.

Among the 12 companies, GRN had a net loss in H1 of the year, while the other 11 companies all achieved profitability. In terms of non-deductible net profit, GRN and Meters/bonwe were in deficit, while the other 10 companies all achieved profit.

In terms of gross profit margin, Ellassay ranked first at 67.49%, followed by SAINT ANGELO and Joeone at second and third place with 65.53% and 63.68% respectively. GRN ranked last with a gross profit margin of about 19.51%.

In terms of net profit margin, Youngor ranked first at 36.76%, followed by SAINT ANGELO and HLA at second and third place with 17.07% and 14.81% respectively. GRN ranked last with a net profit margin of about -2.93%.

In H1 of the year, the average gross profit margin of the 12 companies was about 50%, and the average net profit margin was around 10%.

In terms of inventory turnover days, Youngor ranked first with 1134.93 days, followed by Meters/bonwe and Ellassay with 352.32 days and 299.85 days respectively. Hodo had the lowest turnover days of 44.84 days. Generally, a lower turnover days means a lower inventory occupancy rate and stronger product liquidity.

In terms of the asset-liability ratio (total liabilities/total assets x 100%), Meters/bonwe had the highest ratio of 91.67%, followed by HLA and Youngor at second and third place with 53.42% and 51.78% respectively. Ellassay had the lowest debt ratio of 31.92%. Generally, a lower asset-liability ratio indicates stronger debt-paying ability, but it is not always better to have a lower ratio. A high or low debt ratio may not be optimal for a company, with 40% to 60% being the standard range most favorable for business development.

In conclusion, based on the main operating indicators, most of the 12 listed companies had good operational development in H1 of 2023. Except for the high asset-liability ratio of Meters/bonwe, the remaining 11 companies were within a relatively reasonable range. GRN and Meters/bonwe had a deficit in non-deductible net profit, while the other 10 companies achieved profitability, with most of them showing a significant year-on-year growth and a clear trend of stable improvement.