Textile & Garment – Note – Nonrated – A bumpy road ahead for the industry
The total revenue growth momentum of listed garment companies was maintained in 3Q22 when posting 27.0% compared to 25.8% in 2Q22. the earnings growth pace spiked from 22.6%% yoy in 2Q22 to 59.0% yoy in 3Q22 thanks to the low base effect as the Southern region was in a lockdown period in 3Q21. Whereas, listed yarn makers witnessed decent growth figures in 3Q22. Specifically, the revenue growth pace in 3Q22 was 16.7% yoy compared to only 5.5% yoy in 2Q22. Net profit growth of yarn companies also jumped to 12.7% yoy in 3Q22 from 1.2% yoy in 2Q22.