Domestic color spinning leading enterprises - Bailong Oriental Co., Ltd. (hereinafter referred to as "Bailong Oriental") Recently disclosed that the 2021 performance pre-increasing announcement, during the reporting period, it is expected to achieve net profit attributable to shareholders of listed companies to 1330 million yuan. 1. 1.66 billion yuan to 1024 million yuan compared to 366 million yuan in the same period last year, an increase of 263% to 280% year-on-year.

Bailong Oriental explanation said that the company's pre-increase is mainly due to the comprehensive impact of factors such as the overall capacity of the company in the reporting period to the level of the epidemic, the increase in capacity utilization, increased orders, main business profit growth.

Industry insiders also believe that global epidemic brings overseas orders to flow into + raw materials, and promote high growth in most textile manufacturing leads. Side-resembled independent production capacity expansion is limited to overlapping overseas orders, and it is expected to benefit in the short term.

In Huaxi Securities Analyst Tang Shuang, the growth of Bailong Oriental performance is mainly from capacity utilization recovery super expectations and in the fourth quarter price. In view, during the reporting period, Bailong Oriental Net Profit increased by several factors. One is that the energy utilization rate is greatly improved in 2021. It is expected that the capacity utilization rate is around 88% in 2021, including the quarter The third quarter is affected by the Vietnamese epidemic drop to 70%, but the fourth quarter has returned to 90 +%; the second is that the price of cotton prices and product structure improves product price, estimation, 2021 Bai Longdong sales / The unit price increased by 10% / 20%, respectively; the third is that low-cost cotton stocks and improvement of product structure can be improved, and the annual gross profit margin is expected to be around 22.5%.

Since the market, the market is also said that the mid-resection of the production capacity expansion is limited to overlay overseas orders for continuous reflow, and it is expected to benefit in the short term. The Zheshang Securities Researcher Mary said that since the third quarter of 2021, my country's textile and clothing exports have continued to continue to grow at the high-speed growth, compared with the second quarter, my country's textiles, and clothing exports continued to increase in Q3. On the one hand, it is benefited from my country's excellent epidemic prevention work and the recovery of overseas demand, and on the other hand, it also benefits from the continued expansion and technological innovation of my country's export leading enterprises.

Long-term perspective, after the epidemic, overseas brands have continuously improved the stability requirements of the supply chain, and the single cost and quality factors will turn to more other factors (the integrity of the industrial chain, the external dependence, industry chain recovery ability, society Responsibility, employee life, etc.). At the same time, the geographical diversity of suppliers will become mainstream. Mary believes that China's leading suppliers have accumulated that after nearly 20 years of global layout experience, it has completely dispersed the ability to further disperse the supply chain layout. At the same time, China's leading management efficiency, continuous automation / digital upgrade, can also take into account production costs while supply chain dispersion.

Bailong East has also said that the production and operation of Vietnamese factory has returned to normal, and the capacity utilization rate is 90%. With the continuous improvement rate of New Crown vaccine in Vietnam, according to Vietnam's domestic epidemic prevention and control policies, by 2022 Vietnam will open people's flow, it is expected that overseas epidemic will not have a major impact on Vietnamese factories.

As of the first textile network, the Bailong Dongfang closed 7.46 yuan / share, 7.03%, the market value of 1119 billion yuan.