Analysis on semi-annual reports of listed home textile enterprises

In late Aug, several home textile listed companies released their semi-annual reports for 2023. The data analysis is as follows:

Compared to May this year, out of the six companies, three experienced an increase in market value, while three saw a decrease. Among them, Sunvim had the largest absolute increase in market value, with an increase of 164 million yuan, or 4.5%. Truelove had the highest relative increase, reaching 7.3%. Luolai had the largest total market value, reaching 9.113 billion yuan, but also experienced the biggest decrease, with a contraction of 19.4%. Mercury remained relatively stable, and also had the highest earnings per share at 0.64yuan. Fuanna and Mendale both saw a decrease in market value, with contractions of 6.1% and 9.4% respectively.

Currently, the total market value of the six listed home textile companies was 29.339 billion yuan, which was a decrease of 2.5 billion yuan or 7.85% compared to the previous financial report of 31.839 billion yuan on May 5th.

During the reporting period, Luolai achieved a revenue of 2.456 billion yuan and a net profit of 258 million yuan, with year-on-year growth rates of 3.12% and 23.76% respectively. Its revenue and net profit scale rank among the top in the industry. However, Sunvim has been experiencing continuous growth in revenue since the outbreak of the pandemic, with a revenue of 2.616 billion yuan in the first half of this year, ranking first.

In terms of growth rate, Mercury ranked high in terms of total operating revenue and operating profit. During the reporting period, it achieved operating revenue of approximately 1.796 billion yuan, with a year-on-year increase of 9.37%. The net profit attributable to shareholders of the listed company was approximately 135 million yuan, with a year-on-year increase of 66.75%. In addition, Mendale's Net profits deducting non-recurring profit and loss fell significantly by 478 million yuan in 2022, with a year-on-year decline of 199%. However, it turned losses into gains in the first half of this year, so the net profits deducting non-recurring profit and loss growth rate shown in the chart was significant.

In terms of inventory, accumulated inventory of home textile brands in the first half of this year increased. In June, the combined inventory of the six companies reached 1,022 days, which was an increase of 155 days compared to Dec 2022 (907 days), but lower than June 2022 (1,061 days).