<Asia> Sri Lanka, Bangladesh textile supply chain transfer orders Southbound garment factories are expected to benefit
 

The economic crisis in Sri Lanka and the fire in the container yard in Bangladesh have caused the supply chain of the local garment industry to turn to Vietnam, Indonesia and other places. Juyang (1477), Mingwangshi (4432), and Guanxing-KY (4439) were affected by uncertain factors such as inflation and the Russian-Ukrainian war, which disrupted their fourth-quarter operations, and are expected to grow steadily due to the increase in transfer orders.

 

Domestic garment OEMs pointed out that in Sri Lanka, Bangladesh and other places, the production of local garment factories was not smooth due to accidents recently, and orders were transferred to other countries in Southeast Asia.

 

Juyang, whose consolidated revenue hit a record high in the same period in May, has confirmed orders for the third quarter so far. The revenue from June to September will increase month by month, and the overall revenue growth in the third quarter is no problem.

 

Juyang pointed out that the orders for the fourth quarter have not been fully confirmed, and the follow-up needs to observe the changes in oil prices and inventories. However, there are problems on the supply side in Sri Lanka, Bangladesh and other places, resulting in poor production in local factories, and orders are transferred to other countries in Southeast Asia. Under the trend of Evergrande being the largest supplier, the operating performance of Juyangdi Four Seasons may be better than originally expected.

 

The staple fiber fabric factory Guanxing has finalized orders in the first half of the year. In the second half of the year, under the influence of inflation and the Russian-Ukrainian war, the increase in customer inventories has yet to be digested, and the momentum of ordering has slowed down. However, the transfer of orders in Bangladesh and other places is expected. Under the increase, Guanxing expects that the operation in the third and fourth quarters should help to increase the momentum.

 

In addition, Guanxing has built a new production line in Vietnam and increased its production capacity in Cambodia. It is expected that products will be released in the second half of the year, which will also benefit the steady growth of operations in the second half of the year.

 

The main production bases are in Viet Nam, China, Myanmar and Laos. The products include swimming trunks, shorts, jackets, trousers, etc. The market believes that the transfer of ready-to-wear items in Sri Lanka and Bangladesh should benefit Mwangs. more than other garment factories.

 

Affected by Vietnam’s congested port, orders were deferred, and Mingwangshi’s operations will be at a loss in 2021; however, the main production base in Vietnam has been unsealed, production lines have resumed work, and with the normal shipment of deferred orders, operations since 2022 have returned to normal. , the cumulative revenue from January to April was 473 million yuan, an annual growth of 18.57%. The EPS in the first quarter was 0.61 yuan, which has turned a loss into a profit.

 

The visibility of orders in hand has reached the third quarter. Mingwang has increased the original order volume and is expected to transfer orders. The market expects that the growth rate of revenue and profit in 2022 will be double digits.