Benefiting from the return of orders, textile stock Wang Ruhong’s revenue in July was 2.733 billion yuan, an annual increase of 22% and a monthly increase of 42.5%, setting a new high for this year’s revenue and setting a record for the second time in history.
Ruhong announced on August 7, 2020, that its revenue in July was 2.733 billion yuan, a significant increase of 42.5% compared with June and an increase of 22% compared with the same period in 2019, creating a new revenue this year. At the same time, it wrote The second highest in history, slightly lower than the highest in history, revenue of 2.743 billion yuan in December last year.
After various countries lifted their lockdown, demand for sports and outdoor apparel increased, prompting customers to return orders that had previously been canceled. Overall, Ruhong believes that the bottom has passed and the performance in the second half of the year is expected to improve month by month. Ruhong was invited to attend a legal meeting on the 10th, and Chairman Hong Zhenhai will further explain the operating outlook for the second half of the year.
Ruhong’s revenue in the second quarter was 5.464 billion yuan, with net profit after tax of 710 million yuan, and earnings per share of 2.59 yuan. The cumulative net profit after tax in the first half of the year was 1.406 billion yuan, with earnings per share of 5.13 yuan.
Foreign investors are optimistic that Ruhong has received urgent orders, and orders have continued to grow. They have also begun to take orders from small supply chains and Korean factories. Benefiting from increased demand, improved production capacity utilization, outsourcing ratios, and enlarged economies of scale, this year Gross profit margin is expected to increase quarter by quarter in the second half of the year.
Japanese foreign investors raised the target price of Ruhong from 360 yuan to 382 yuan, and Asian foreign investors raised it to 430 yuan. However, European foreign investors were bearish and only gave a target price of 240 yuan. </p
