The movements of stocks of textile and garment enterprises have been in a downward trend since the beginning of 2022. For example, the share price of MSH of Song Hong Garment since the beginning of the year has decreased by 37% to 33,100 VND/share; STK of Century Yarn decreased 16% to 40,000 VND/share; TNG of TNG Commercial Investment decreased 46% to 16,000 VND/share; GIL of Binh Thanh Import-Export JSC decreased by 56% to 27,900 VND/share;…
Among enterprises, TNG has announced preliminary business results for August and the first 8 months of the year. Accordingly, August's revenue reached VND 697 billion, up 21% over the same period last year and 3% higher than the monthly plan. Profit after tax in August reached VND 37.6 billion, up 31% over the same period last year. Accumulated in the first 8 months, revenue and profit after tax reached VND 4,705 billion and VND 204 billion, respectively, up 33% and 44% over the same period last year.
According to the business results report of textile enterprises in the first 6 months of this year, MSH achieved a revenue of VND 2,736 billion, up 27% over the same period, while profit after tax decreased by 22% to VND 168.846 billion. Explaining this result, MSH said that in the first 6 months of 2022, the company put the Song Hong Nghia Hung Garment area into production, so it increased revenue for the company, and at the same time increased input costs led to revenue. up 27% but profits down 22%.
With STK, the consolidated revenue in the first 6 months reached VND 1,171 billion, up 8.65% over the same period, profit after tax reached VND 147 billion, up 4.55%.
For TCM, Q2 profit after tax decreased by 15% over the same period due to higher cost of raw materials and input fuel costs compared to the same period last year. This cost made the cost of goods sold in the second quarter of 2022 increase by 1% compared to the first quarter of 2022. Moreover, TCM said that due to exchange rate fluctuations, financial expenses in the second quarter were also increased by 2% over the same period.
According to data from the General Department of Customs, in the first eight months of 2022, Vietnam's textile and garment export turnover reached $31.3 billion, up 16.4% over the same period.
In which, garment export turnover reached 24.3 billion USD (up 24.6%) and yarn export turnover reached 3.5 billion USD (down 5%).
Exports to the US reached 12.9 billion USD, up 22.5% over the same period and accounting for 41% of total export turnover. In August 2022, garment exports reached $3.7 billion, up 53% over the same period.
In the third quarter of 2022, some companies such as TNG Investment and Trading JSC (TNG) and Thanh Cong Textile and Garment Joint Stock Company (TCM) still received a large number of orders for delivery for the festive season.
However, the picture in the fourth quarter of 2022 is not very bright for the textile and garment industry when the prospect of orders for the fourth quarter and first six months of 2023 is not very positive, due to inflation concerns and low inventory levels. customer's high.
In the first half of September 2022, textile and garment exports reached $1.2 billion, down 48% compared to the first half of August 2022, indicating a significant slowdown in orders.
Some domestic manufacturers said that the number of orders in the fourth quarter of 2022 was 25-50% lower than in the second quarter of 2022 due to high inventories in import markets. The impact will be more severe for those businesses with customers mainly in the US and EU.
Exports to Japan and South Korea also tend to decrease, but to a much lesser extent. TCM has export revenue to Japan and Korea accounting for 40% of total revenue. Therefore, TCM and enterprises such as Song Hong Garment (MSH) and Binh Thanh Import-Export Joint Stock Company (GIL) can record a lower decrease in revenue than companies that are more focused on the US and EU markets.
The recent drop in cotton and polyester yarn prices has impacted fabric costs. Companies forecast fabric costs will start to fall in the fourth quarter of 2022 as demand has not yet recovered.
Besides, although most textile companies record their revenue in USD, many of their expenses are also denominated in USD, such as material costs, logistics costs and interest expenses. . As a result, in the second quarter of 2022, many companies saw a significant increase in realized and unrealized exchange rate losses, resulting in financial loss, due to the USD/VND exchange rate falling 2% in the quarter. .
As the sales outlook becomes bleak, while the USD/VND exchange rate is forecasted to continue to decline in the second half of 2022, this will continue to negatively affect business results of businesses, especially especially enterprises with high cost in USD such as Century Yarn JSC (STK), Thanh Cong Textile and Garment (TCM), and TNG.
Hien Anh
https://infonet.vietnamnet.vn/kho-khan-bua-vay-cac-doanh-nghiep-det-may-gia-co-phieu-giam-manh-5002198.html
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