Market Overview - In October, the A-share textile and apparel sector outperformed the broader market, with textile manufacturing performing better than branded apparel. Since November, the sector has continued to show strong performance, with branded apparel increasing by 3.4% and textile manufacturing by 2.9% [1][12] - The Hong Kong textile and apparel index fell by 4.9% in October but has since turned positive in November [1][19] Brand Apparel Insights - Retail sales of clothing in September grew by 4.7% year-on-year, with a month-on-month increase of 1.6 percentage points [1][21] - E-commerce showed strong performance in October, with all categories experiencing month-on-month growth. Outdoor apparel led year-on-year growth, with sportswear, outdoor wear, leisure wear, home textiles, and personal care products showing growth rates of 0%, +19%, 0%, +1%, and +2% respectively [1][21] - Leading brands in sportswear included Lululemon (+88%), Asics (+47%), and Descente (+35%). In outdoor brands, Kailas (+55%), Berghaus (+41%), and Camel (+39%) showed strong growth. In leisure wear, Dazzle (+93%), Li Ning (+85%), and Xuezhongfei (+49%) experienced rapid growth [1][21] Textile Manufacturing Insights - On a macro level, the textile export growth in October was impacted by high base effects from the previous year, with Vietnam's textile exports declining by 1.0% year-on-year and China's textile exports down by 9.1% [1][21] - Cotton prices showed slight increases in October (+0.7%) while wool prices decreased significantly (-20.9% month-on-month) [1][21] - On a micro level, Taiwanese companies reported mixed revenue performances in October, but outlooks remain optimistic. Companies like Ju Hong expect revenue recovery in Q4, while Wei Hong has strong demand driven by the upcoming World Cup [1][21] Investment Recommendations - Focus on textile manufacturing rebound and consumer innovation opportunities. The fourth-quarter orders in textile manufacturing are expected to recover, suggesting a potential turnaround for companies facing difficulties [3][6] - Key companies to watch include Shenzhou International, which benefits from tariff reductions and Nike's recovery, and Huayi Group, which is seeing continuous improvement in profitability [6][7] Key Company Performance Predictions - Shenzhou International: Maintain "Outperform" rating with an estimated EPS of 4.37 in 2025 and 4.96 in 2026 [7] - Huayi Group: Maintain "Outperform" rating with an estimated EPS of 2.85 in 2025 and 3.48 in 2026 [7] - Kai Run Co.: Maintain "Outperform" rating with an estimated EPS of 1.52 in 2025 and 1.78 in 2026 [7] - New Australia Co.: Maintain "Outperform" rating with an estimated EPS of 0.63 in 2025 and 0.71 in 2026 [7]

Market Overview - In October, the A-share textile and apparel sector outperformed the broader market, with textile manufacturing performing better than branded apparel. Since November, the sector has continued to show strong performance, with branded apparel increasing by 3.4% and textile manufacturing by 2.9% [1][12] - The Hong Kong textile and apparel index fell by 4.9% in October but has since turned positive in November [1][19] Brand Apparel Insights - Retail sales of clothing in September grew by 4.7% year-on-year, with a month-on-month increase of 1.6 percentage points [1][21] - E-commerce showed strong performance in October, with all categories experiencing month-on-month growth. Outdoor apparel led year-on-year growth, with sportswear, outdoor wear, leisure wear, home textiles, and personal care products showing growth rates of 0%, 19%, 0%, 1%, and 2% respectively [1][21] - Leading brands in sportswear included Lululemon (88%), Asics (47%), and Descente (35%). In outdoor brands, Kailas (55%), Berghaus (41%), and Camel (39%) showed strong growth [1][21] Textile Manufacturing Insights - On a macro level, the textile export growth in October was negatively impacted by high base effects from the previous year, with Vietnam's textile exports declining by 1.0% year-on-year and China's textile exports down by 9.1% [1][21] - Cotton prices showed slight increases in October, while wool prices decreased significantly, down 20.9% month-on-month and 6.8% year-on-year [1][21] - Taiwanese companies in the textile sector are optimistic about future revenue, with several companies expecting a recovery in orders and revenue in the fourth quarter [1][6] Investment Recommendations - Focus on textile manufacturing rebound and consumer innovation opportunities. The fourth quarter is expected to see a recovery in orders, with diminishing tariff impacts and stabilizing order placements [3][6] - Key companies to watch include Shenzhou International, Huayi Group, and Kai Run Co., which are expected to benefit from improved order visibility and market demand [3][6][7] - In branded apparel, the report recommends focusing on high-end segments and brands in the sports and outdoor categories, highlighting Anta Sports, Li Ning, and Tebu International as key players [3][6]

Market Overview - In October, the A-share textile and apparel sector outperformed the broader market, with textile manufacturing performing better than branded apparel. Since November, the sector has continued to show strong performance, with branded apparel increasing by 3.4% and textile manufacturing by 2.9% [1][12] - The Hong Kong textile and apparel index fell by 4.9% in October but has since turned positive in November [1][19] Brand Apparel Insights - Retail sales of clothing in September grew by 4.7% year-on-year, with a month-on-month increase of 1.6 percentage points [1][21] - E-commerce showed strong performance in October, with all categories experiencing month-on-month growth. Outdoor apparel led year-on-year growth, with sportswear, outdoor wear, leisure wear, home textiles, and personal care products growing by 0%, 19%, 0%, 1%, and 2% respectively [1][21] - Leading brands in sportswear included Lululemon (88%), Asics (47%), and Descente (35%). In outdoor brands, Kailas (55%), Berghaus (41%), and Camel (39%) showed strong growth. In leisure wear, brands like Dazzle (93%), Li Ning (85%), and Snow Flying (49%) experienced rapid growth [1][21] Textile Manufacturing Insights - On a macro level, the textile export growth in October was impacted by high base effects from the previous year, with Vietnam's textile exports declining by 1.0% year-on-year and China's textile exports down by 9.1% [1][21] - Cotton prices showed slight increases and decreases in October, with domestic cotton prices up by 0.7% and imported cotton prices down by 0.9%. Wool prices decreased significantly, down 20.9% month-on-month and 6.8% year-on-year [1][21] - On a micro level, Taiwanese companies showed varied revenue performance in October, with optimistic future outlooks. Companies like Ju Hong and Wei Hong reported strong order visibility and expected revenue recovery in the upcoming quarters [1][21] Investment Recommendations - Focus on textile manufacturing rebound and consumer innovation opportunities. The fourth quarter is expected to see order recovery, with diminishing tariff impacts and stabilizing order placements [3][6] - Key companies to watch include Shenzhou International, which benefits from tariff reductions and Nike's recovery, and Huayi Group, which is seeing continuous improvement in profitability [6][7]

Core Viewpoint - The Hong Kong stock market has seen a significant increase in the share prices of sportswear and footwear manufacturing companies, indicating positive market sentiment towards this sector [1] Company Performance - Crystal International (02232.HK) has experienced a rise of 8.81%, reaching a price of 7.29 HKD [1] - Shenzhou International (02313.HK) has seen an increase of 5.1%, with its share price at 71.15 HKD [1]

Core Viewpoint - The sports footwear and apparel manufacturing sector is experiencing a positive outlook, with potential recovery in downstream demand and benefits for leading companies if Nike's performance rebounds in the fiscal year 2026 [1] Group 1: Market Performance - Crystal International (02232) shares increased by 8.81%, reaching HKD 7.29, while Shenzhou International (02313) shares rose by 5.1%, reaching HKD 71.15 [1] Group 2: Industry Outlook - Short-term recovery in downstream demand for the sports footwear and apparel manufacturing industry is anticipated, with strong competitiveness among leading companies and an expanding customer base [1] - The long-term market potential for the sports footwear and apparel industry is significant, with high industry prosperity and steady growth expected in future performance [1] Group 3: Export Challenges - In October, China's textile and apparel export value was USD 22.3 billion, a year-on-year decline of 13%, with textile and apparel exports at USD 11.3 billion and USD 11 billion, respectively, reflecting declines of 9% and 16% [1] - The recent announcement by the U.S. to cancel additional tariffs on China may lead to gradual recovery in the export chain, positively impacting the sports manufacturing and non-woven fabric sectors [1]

Core Viewpoint - The sports footwear and apparel manufacturing sector is experiencing a positive trend, with key companies like Crystal International and Shenzhou International seeing significant stock price increases due to anticipated recovery in downstream demand and potential benefits from Nike's performance reversal in FY2026 [1] Industry Summary - Short-term outlook for the sports footwear and apparel manufacturing industry indicates a gradual recovery in downstream demand, with leading companies expected to benefit from improved performance in the supply chain [1] - The industry has a large market space and high prosperity, with strong competitiveness among leading companies, enhanced penetration rates among existing customers, and continuous expansion of new customers and production capacity [1] Company Summary - Crystal International (02232) saw an increase of 8.81%, reaching HKD 7.29, while Shenzhou International (02313) rose by 5.1%, reaching HKD 71.15 [1] - The textile and apparel export value from China in October was USD 22.3 billion, a year-on-year decline of 13%, with specific declines in textile and apparel exports of USD 11.3 billion and USD 11 billion, respectively [1] - The recent announcement by the U.S. to cancel the 10% tariff on fentanyl imports from China and suspend the 24% reciprocal tariff for a year is expected to positively impact the export chain, leading to a gradual recovery [1]

Investment Rating - The report maintains a recommendation for the industry, indicating a stable outlook for textile manufacturing and a positive trend for gold and jewelry sectors [3]. Core Insights - Textile manufacturing is expected to gradually improve due to stable overseas demand and low inventory levels, despite short-term production efficiency issues and order delays from existing clients [7][11]. - Brand apparel is facing pressure due to weak domestic consumption, with only a few companies showing positive performance through strong product and channel strategies [7][38]. - The gold and jewelry sector is experiencing high growth driven by low base effects, rising gold prices, and product structure upgrades, with leading brands showing significant revenue growth [7][49]. Summary by Sections Textile Manufacturing - Overseas demand remains stable, with low inventory levels in the U.S. indicating a healthy supply chain [12]. - Major global brands like NIKE are seeing recovery after two years of channel optimization, with orders expected to improve as major sporting events approach in 2026 [11][18]. - Key companies to watch include Shenzhou International, Yuyuan Group, and others with Southeast Asian production capabilities [34]. Brand Apparel - The performance of brand apparel companies is generally under pressure, with most reporting low single-digit revenue growth and declining profits [38]. - Notable exceptions include Mercury Home Textiles and Luolai, which reported significant revenue and profit increases due to product expansion and multi-channel strategies [38]. - Companies like Mercury Home Textiles and Li Ning are recommended for their positive brand momentum and strategic changes [48]. Gold and Jewelry - The gold and jewelry sector saw a 11.5% increase in retail sales in the first three quarters of 2025, driven by rising gold prices and product upgrades [49]. - Leading brands such as Chao Hong Ji and Man Ka Long reported substantial revenue growth, with Chao Hong Ji's revenue increasing by nearly 50% in Q3 2025 [54]. - Investment recommendations focus on brands with strong market positioning and ongoing product and channel upgrades, such as Chow Tai Fook and Chao Hong Ji [67].

Group 1 - The US stock market experienced declines on November 7, 2025, with the Dow Jones falling by 0.8%, the S&P 500 down by 1.1%, and the Nasdaq decreasing by 1.9% [3] - The Golden Dragon Index, which reflects the performance of Chinese concept stocks, remained stable with a slight drop of less than 0.1% [3] Group 2 - The Hong Kong and mainland Chinese stock markets showed strong performance, with the A-share market rising for the second consecutive trading day. The Shanghai Composite Index increased by nearly 1% to close at 4,007 points, while the Shenzhen Component Index rose by 1.7% to 13,452 points, with total trading volume exceeding 2 trillion RMB [4] - The Hang Seng Index opened high, gaining 126 points and surpassing the 26,000-point mark, eventually closing up 550 points or 2.12% at 26,485 points. The Tech Index saw an increase of 2.7%, closing at 5,944 points, with total trading volume around 235 billion HKD [4] - Among the constituent stocks, China Hongqiao (01378.HK) performed the best with a nearly 10% increase, while SMIC (00981.HK) saw a rise of over 7.3%. Other tech stocks like Alibaba (09988.HK) and JD.com (09618.HK) also experienced gains of over 4% and 3.3%, respectively [4] - Only four constituent stocks declined, with Shenzhou (02313.HK) dropping nearly 2%, and others like Tingyi (00322.HK), New Oriental (09901.HK), and Galaxy Entertainment (00027.HK) falling by 1.4%, 0.9%, and 0.36% respectively [4] Group 3 - Following the recent surge, the Hang Seng Index stabilized above the 26,000-point level and remained above the 10-day and 20-day moving averages. However, trading volume did not increase, and the index approached resistance near 26,500 points, suggesting that without further positive news, the market may struggle to maintain levels above this point [5]

Investment Rating - The report maintains an "Accumulate" rating for the textile and apparel industry [6] Core Insights - The textile and apparel industry is experiencing a weak recovery, with the jewelry sector showing better growth compared to clothing [14] - The domestic sportswear market is expected to maintain long-term growth resilience despite short-term fluctuations in offline sales [1] - The report highlights the importance of inventory management and the impact of promotional events on sales performance [1][2][26] Summary by Sections 1. Sports Footwear and Apparel - The sports footwear and apparel sector showed weaker performance in Q3 2025 compared to Q2 but still outperformed the overall apparel market [1] - Offline sales for domestic sports brands remain weak, while e-commerce channels are performing better [1] - Inventory levels for domestic sports brands increased in Q3 due to preparations for the National Day holiday and Double Eleven sales [1] - Adidas reported a 6% year-on-year revenue growth in Greater China for Q3 2025, while Nike's sales in the region declined [1][18] 2. Brand Apparel - The brand apparel sector showed improvement in Q3 2025, with revenue and net profit growth of 3.1% and 23.2% respectively, driven by a low base effect [2] - The home textile segment benefited from product updates, while the fashion apparel category faced weak demand due to low consumer confidence [2] - The report anticipates continued reasonable expense management and stable profit growth for some companies in Q4 2025 [2] 3. Textile Manufacturing - Revenue for key textile manufacturing companies remained relatively stable, with a slight decline in net profit [3] - Companies with different customer structures showed varied performance, with some like Huayi Group achieving a 7% revenue growth by expanding their client base [3] - The report suggests that as inventory levels normalize, there may be a recovery in orders from upstream manufacturing companies [3] 4. Gold and Jewelry - The gold and jewelry sector experienced performance differentiation, with retail sales of gold and silver jewelry increasing by 11.5% year-on-year in the first nine months of 2025 [4] - Companies with fewer stores or a direct sales model reported excellent revenue growth, with some like Chao Hong Ji and Man Ka Long achieving revenue increases of 28.3% and 29.3% respectively [4] - The report recommends focusing on companies with strong product and channel capabilities in the jewelry sector [4] 5. Investment Recommendations - The report recommends several companies based on their performance and market positioning, including Shenzhou International, Anta Sports, Li Ning, and Chow Tai Fook, highlighting their respective PE ratios for 2025 [4][9]

Core Viewpoint - Southbound funds have reduced their holdings in Shenzhou International (02313.HK) by 391,400 shares on November 4, indicating a trend of net selling over recent trading days [1] Group 1: Shareholding Changes - In the last five trading days, southbound funds have reduced their holdings for five days, with a total net reduction of 2,226,400 shares [1] - Over the past 20 trading days, there were 11 days of net increases in holdings, totaling 2,111,200 shares [1] - As of now, southbound funds hold 96,183,800 shares of Shenzhou International, accounting for 6.39% of the company's total issued ordinary shares [1] Group 2: Trading Data - On November 4, 2025, the total number of shares held was 96,183,800, with a decrease of 391,400 shares, representing a change of -0.41% [2] - On November 3, 2025, the total number of shares held was 96,575,200, with a decrease of 514,700 shares, representing a change of -0.53% [2] - On October 31, 2025, the total number of shares held was 97,089,900, with a decrease of 1,084,700 shares, representing a change of -1.10% [2] Group 3: Company Overview - Shenzhou International Group Holdings Limited primarily engages in the production and sale of knitted apparel products [2] - The company's main business involves manufacturing knitted products through a combination of OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) services [2] - The product categories include sportswear, casual wear, underwear, and other knitted products, with operations in both domestic and international markets [2]