Investment Rating - The report suggests a positive investment outlook for the textile and apparel industry, focusing on resilient brands and manufacturing companies with performance elasticity [1]. Core Insights - The textile and apparel sector has shown stable growth in retail consumption, with a notable increase in apparel sales, while textile manufacturing exports have displayed a mixed performance [2][4]. - The report highlights the importance of brand strength and market trends, particularly in the sportswear and outdoor segments, which are expected to perform well [3][46]. - The impact of international trade policies, particularly U.S. tariffs, continues to be a significant factor affecting the textile manufacturing sector [4]. Summary by Sections Section 1: Market Review - Retail sales in April 2025 showed a year-on-year growth of 5.1%, with apparel and footwear sales increasing by 2.2% [2][12]. - Textile exports from China decreased by 0.5% year-on-year in April 2025, underperforming compared to Vietnam and Bangladesh, which saw growth rates of 18.15% [2][15]. Section 2: Brand Apparel - The sportswear segment is highlighted for its resilience, with outdoor brands experiencing high demand. Key companies to watch include Anta Sports and Nike [3][46]. - Discount retail formats are rapidly emerging due to consumer demand for value, with companies like Hailan Home benefiting from this trend [3][46]. - Policies such as childcare subsidies are expected to stimulate consumption, benefiting companies like Luolai Life and Mercury Home Textiles [3][46]. Section 3: Textile Manufacturing - The report emphasizes the need to focus on companies with performance elasticity, recommending firms like Crystal International and Zhejiang Natural [4]. - The textile manufacturing sector is experiencing a shift towards increased market concentration, with leading companies such as Huayi Group and Shenzhou International being favored [4]. - The overall demand outlook remains cautious, with brands maintaining a conservative stance on consumer spending [4][19]. Section 4: Stock Performance - As of May 30, 2025, the A-share textile and apparel sector saw a slight increase of 1.87%, while the H-share sector rose by 8.7% [39]. - The report identifies top-performing stocks in both A-share and H-share markets, highlighting significant variances in performance among individual companies [35][39]. Section 5: Company Focus - Anta Sports is noted for its strong brand momentum and expansion into outdoor segments, with plans to increase international revenue [57]. - The report also highlights Tmall's potential for recovery due to improved inventory turnover and a focus on Nike brand sales [60].

Core Viewpoint - The company is optimistic about the growth potential of its medical business across three channels by 2025, driven by strong performance in both domestic and overseas markets [1][4]. Group 1: Medical Business Growth - The company's medical business is expected to achieve quality growth across three main channels by 2025, with a strong focus on overseas markets where it has 34 years of experience [1][4]. - The domestic hospital business has begun to yield results from previous investments in channel development, product adjustments, and talent acquisition, with core products like surgical combination packs performing well [1][4]. - The C-end consumer medical sector is anticipated to grow significantly due to rising health awareness and consumption upgrades among consumers [1][2]. Group 2: C-End Business Development - The C-end business is showing rapid growth, supported by the company's strong brand image and a wide member base, with over 17 million fans as of March 31, 2025 [2][4]. - The company has expanded its product line from masks to various categories, including nasal care and functional wet wipes, enhancing its market position through increased brand investment [2][4]. - The company plans to accelerate its capabilities in the C-end sector to capture new market opportunities and respond to changing consumer demands [2][4]. Group 3: Profitability Outlook - The overall profitability of the company's two main businesses is expected to improve steadily, with the medical business projected to have an operating profit margin of 7.6% in 2024 [2][4]. - The cotton era brand is experiencing rising consumer recognition and improved product structure, leading to a favorable outlook for gross margins [2][4]. - The marketing investments are becoming more precise, and the management expense ratio is expected to decline, contributing to continued profitability growth in the consumer goods sector [2][4]. Group 4: Market Trends - The cotton soft towel market is experiencing growth, with the industry scale reaching a hundred billion level, indicating significant market potential [3][4]. - The company has developed an integrated business plan for cotton soft towels, focusing on product, marketing, and channel development to maintain its leading position [3][4]. - The company aims to enhance brand awareness and market influence through continuous brand building and product innovation, ensuring the use of 100% high-quality cotton [3].

Group 1: Market Performance - Major indices experienced a rebound on June 4, with the Shanghai Composite Index rising by 0.42%, the Shenzhen Component Index by 0.87%, and the ChiNext Index by 1.11% [2] - Over 3,700 stocks in the Shanghai and Shenzhen markets saw gains, with a total trading volume of approximately 1.15 trillion yuan [2] Group 2: Beauty and Personal Care Sector - The beauty and personal care sector showed strong performance, with companies like Haoyue Care rising by 10% and Jinbo Biological by 7.36% [2] - A report from China Merchants Securities indicated that the cosmetics sector will continue to see performance differentiation in 2024 and Q1 2025, with leading domestic brands benefiting from competitive pricing and differentiated products [2] Group 3: AI and CPO Technology - Companies involved in AI and CPO technology saw significant gains, with Taicheng Light rising by 14.88% and Xinyi Sheng by over 7% [2][3] - Yole's report predicts that the CPO market will grow from $46 million in 2024 to $8.1 billion by 2030, with a compound annual growth rate of 137% [3] Group 4: Beer Industry - The beer sector also showed strength, with companies like Pinwo Food rising by 12.84% and Huichuan Beer by over 7% [3] - Analysts noted that the beer industry is in the late stage of capital expenditure, with potential for increased dividend payouts from state-owned enterprises [3] Group 5: Battery and Solid-State Battery Sector - The battery and solid-state battery sectors were active, with Keheng Co. rising by 20% and Nord Co. by 10% [4] - Solid-state batteries are expected to start vehicle verification by 2027 and achieve mass production by 2030, with projected shipments exceeding 65 GWh by that year [4] Group 6: Declining Sectors - The logistics and airport shipping sectors faced declines, with companies like China Eastern Airlines and Shentong Express experiencing downturns [5]

Summary of the Conference Call for稳健医疗 Company Overview - **Company Name**: 稳健医疗 (Steady Medical) - **Business Segments**: The company operates in two main segments: consumer products (52% of revenue) and medical supplies (48% of revenue) as of Q1 2025. The consumer products segment contributes approximately 60% to the overall operating profit margin [2][3]. Financial Performance - **Revenue Growth**: From 2013 to 2019, the company achieved a revenue growth rate of 24%, primarily driven by the consumer products segment. In Q1 2025, both medical supplies and consumer products segments returned to double-digit growth [2][5]. - **Profitability**: The company expects a 50% year-on-year increase in net profit attributable to the parent company in 2025, with the medical segment projected to grow by approximately 38% [4][19]. Market Dynamics - **Market Size**: The market for wet and dry cotton wipes is valued at over 10 billion yuan, with an expected growth rate of about 7%. The sanitary napkin market is around 100 billion yuan, with a projected retail price increase of about 3% in the coming years [2][6]. - **Market Share**: 全棉时代 (Cotton Era) holds over 15% market share in the facial towel category, while the overall market share of the company exceeds 20%, maintaining the leading position in this category [2][6]. Product Performance - **Core Products**: The core products, including dry and wet cotton wipes and sanitary napkins, have shown significant growth. The sanitary napkin brand, 奈斯公主 (Nice Princess), experienced over 70% year-on-year revenue growth in Q1 2025 [2][7][11]. - **Innovation**: The company introduced a hanging cotton wipe product, which significantly boosted market performance despite being a minor innovation [10]. Consumer Education and Brand Strategy - **Consumer Education**: The company emphasizes consumer education to enhance awareness of the quality and safety of cotton products, which has led to a recovery in double-digit growth for dry and wet cotton wipes [8][9]. - **Brand Positioning**: As a pioneer in the market, the company has established a strong brand identity, leveraging its unique product offerings and consumer education to differentiate itself from competitors [9][20]. Sales Channels - **Channel Distribution**: The consumer products segment has a channel distribution of approximately 60% online and 40% offline. The online sales have been particularly strong on platforms like Douyin [12][13]. - **Store Expansion**: The company operates 487 stores, with plans to open about 50 new stores annually while adjusting the store structure to improve performance [14]. Competitive Landscape - **Market Competition**: The low-value medical consumables market is highly competitive, with domestic brands primarily competing in the low-end market. The company aims to leverage its international presence and product quality to maintain a competitive edge [15][16]. Future Outlook - **Growth Projections**: The company anticipates strong growth in the consumer products segment, with cotton wipes expected to grow by 25% to 30% and sanitary napkins by over 50% in 2025 [18]. - **Net Profit Forecast**: The projected net profit for 2025 is 1.04 billion yuan, with continued growth expected in subsequent years [19]. - **Valuation**: The company's stock is currently valued at a PE ratio of approximately 30 times for 2025, which is considered reasonable given its diversified business model and strong product drivers [21]. Conclusion - **Investment Rating**: The company is viewed positively, with expectations of continued growth and a strong market position, leading to an optimistic outlook for future performance [22].

Market Overview - The Shanghai Composite Index closed at 3363.48 points, above the five-day moving average, with an increase of 0.48% [1] - The total trading volume of A-shares reached 763.885 billion yuan [1] Stock Performance - A total of 929 A-shares broke through the five-day moving average today [1] - Stocks with significant deviation rates include: - Laisai Laser (21.79%) - Kangliyuan (11.86%) - Mankalon (10.78%) [1] Top Stocks by Deviation Rate - Laisai Laser (871263): - Today's change: +30.00% - Turnover rate: 38.87% - Five-day moving average: 19.53 yuan - Latest price: 23.79 yuan - Deviation rate: 21.79% [1] - Kangliyuan (301287): - Today's change: +17.32% - Turnover rate: 32.85% - Five-day moving average: 35.00 yuan - Latest price: 39.15 yuan - Deviation rate: 11.86% [1] - Mankalon (300945): - Today's change: +19.98% - Turnover rate: 18.47% - Five-day moving average: 22.66 yuan - Latest price: 25.10 yuan - Deviation rate: 10.78% [1] Additional Notable Stocks - Beitaini (300957): - Today's change: +11.83% - Turnover rate: 4.22% - Five-day moving average: 45.58 yuan - Latest price: 49.44 yuan - Deviation rate: 8.48% [1] - Jiuling Technology (873305): - Today's change: +10.00% - Turnover rate: 13.81% - Five-day moving average: 42.79 yuan - Latest price: 46.20 yuan - Deviation rate: 7.98% [1]

Group 1: Medical Business Growth - The three main channels of the medical business are expected to achieve quality growth in 2025, with overseas business maintaining stable growth despite some tariff uncertainties [1][2] - Domestic hospital business is entering a harvest period due to prior investments in channel construction and product adjustments, with core products like surgical combination packs performing strongly [1][2] Group 2: C-end Business Development - The C-end business is experiencing rapid growth, supported by a strong brand image and a wide member base, with over 17 million fans as of March 31, 2025 [3] - The company plans to accelerate capability building in the C-end market to capture new opportunities, expanding its product line beyond masks to include nasal care, medical personal care, and functional wipes [3] Group 3: Mergers and Acquisitions Strategy - The core principle of the company's investment and acquisition strategy is to align with its overall strategic goal of creating a "one-stop solution for global medical consumables" [4] - The acquisition of GRI in September 2024 has strengthened the company's overseas capacity and local operational capabilities, marking a significant step towards globalization [4] Group 4: Cotton Soft Towel Market - The cotton soft towel market is growing, with the industry scale reaching over 10 billion, indicating vast market potential [5] - The company has developed an integrated business plan for cotton soft towels, focusing on consumer education and product innovation to enhance market share [5] Group 5: Profitability Trends - The overall profitability of the two main businesses is expected to improve steadily in 2025, with the medical business's operating profit margin projected to increase from 7.6% in 2024 [6] - The cotton soft towel brand is seeing rising consumer recognition and improved product structure, leading to a favorable outlook for gross margins [6] Group 6: Recent Marketing Activities - The company has launched various marketing activities to enhance brand awareness, including a traceability system for cotton soft towels and collaborations with media for promotional content [7] - Notable marketing events include a factory visit by experts and a live interaction with brand ambassadors to engage consumers [7]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4][9]. Core Views - The company is gradually returning to normal operations, with a strong confidence signal from the equity incentive plan launched in 2024, and an upward brand trajectory expected in 2025 [2][4]. - The company has established itself as a leading player in the medical and consumer health sectors, with significant growth potential in both segments [2][4]. Summary by Sections Company Overview - The company, established in 1991, has become a leading brand in the medical and consumer health sectors in China, with two main brands: "Winner" and "Purcotton" [2][16]. - The business covers various fields including wound care, infection protection, personal care, family care, maternal and infant care, and home textiles [2][16]. Consumer Products Segment - The "Purcotton" brand leverages its strong medical background to create a comprehensive range of cotton-based products, targeting family consumption across various scenarios [3][44]. - Key products include cotton soft towels and sanitary napkins, with the former showing a market capacity of over 100 billion and a growth rate of 38.6% in Q1 2025 [3][44]. - The sanitary napkin market is valued at over 100 billion, with a remarkable growth of 73.5% in Q1 2025, driven by quality improvements and effective marketing strategies [3][57]. Medical Supplies Segment - The medical supplies segment has shown resilience, with a 12% growth in internal revenue since the second half of 2024, excluding GRI [3][4]. - In Q1 2025, the medical supplies segment's exports grew by 84.1%, indicating strong international demand, particularly in Europe and Japan [3][4]. - The company is enhancing its local production and operational capabilities in the U.S. following the completion of the GRI acquisition, which is expected to reduce risks in expanding overseas [3][4]. Financial Forecast and Investment Recommendations - The company is projected to achieve net profits of 10.4 billion, 12.4 billion, and 14.7 billion from 2025 to 2027, with year-on-year growth rates of 50.1%, 19.0%, and 18.8% respectively [4][11]. - The current stock price corresponds to a PE ratio of 27X for 2025, slightly below the average of comparable companies, indicating a favorable investment opportunity [4][11].

Summary of the Conference Call for稳健医疗 Company Overview - **Company**: 稳健医疗 (Steady Medical) - **Industry**: Medical and Consumer Products Key Points Financial Performance - In 2024, the company has recovered from the pandemic impact, achieving positive quarterly revenue growth and improving profitability, with continued growth in Q1 2025 [2][3] - The company set revenue growth targets of 13% to 18% for its medical and consumer segments through an equity incentive plan, boosting market confidence [2][3] Medical Segment - The medical segment has improved profitability through product structure adjustments, inventory management, and talent incentives, although it has not yet returned to pre-pandemic levels [2][4][5] - High-margin products like advanced dressings and health personal care items are gaining a larger share of the medical business [4] - The medical business has significant growth potential across various channels, including hospitals, OTC, and e-commerce [4][9] Consumer Segment - The consumer segment focuses on strategic categories such as cotton soft towels, sanitary napkins, newborn clothing, and adult personal wear, with cotton soft towels and sanitary napkins showing strong growth potential [2][5][8] - The company has shifted from a multi-SKU strategy to a focused strategy, enhancing brand recognition and reducing price competition [5] - The sanitary napkin market has shown limited impact from the 315 public opinion incident, with e-commerce data recovering [6][7] Market Potential - The cotton soft towel market is projected to exceed 10 billion yuan, with a growth rate of approximately 20% annually, while the sanitary napkin market is estimated between 30 billion to 40 billion yuan [8] - The company plans to leverage successful products for brand iteration and expand into new markets through user management and private domain operations [8] Long-term Outlook - Both the medical and consumer segments are expected to have significant growth potential, with the company positioned as a viable investment target despite short-term fluctuations due to the pandemic [9][10] - The company aims to continue its equity incentive goals and capitalize on the growth opportunities in both segments [10]

Core Insights - The core message emphasizes the importance of trust in consumer products, particularly through the transparent manufacturing process and real-life endorsements from brand ambassadors [1][2][3] Group 1: Brand Engagement and Trust - The brand ambassadors, including Olympic champion Guo Jingjing and host Chen Weihong, visited the cotton towel production facility, highlighting the rigorous quality control and hygiene standards in place [2] - Guo Jingjing expressed that the strict production controls enhance consumer confidence in product safety, while Chen Weihong praised the company's commitment to environmental responsibility [2] - Zhao Liying, as the global ambassador for the brand, participated in a live-stream event to share her personal experiences with the products, reinforcing the message of comfort, health, and environmental consciousness [3] Group 2: Product Quality and Innovation - The brand's philosophy, "medical care close to life, cotton care for health," drives its commitment to extending medical product standards to everyday consumer goods [4] - Continuous innovation in product development is evident through the proprietary Cotton Tech fabric technology, which offers various benefits such as softness, breathability, and antibacterial properties [4] Group 3: Long-term Commitment to Quality - The company's consistent focus on quality control, production optimization, and responsiveness to consumer feedback establishes a reliable product choice for consumers [5] - The engagement of brand ambassadors is seen as a natural outcome of years of professional accumulation and trust-building efforts [5] Group 4: Future Vision - The company aims to connect with users through professional manufacturing and authentic communication, balancing technology, product quality, and brand messaging [6] - There is a commitment to collaborate with more partners to promote a lifestyle that values quality and understanding, extending beyond mere products [6]

Trading Information Summary - On May 23, 2025, the stock price of Steady Medical (300888) closed at 48.88 yuan, down 1.21%, with a turnover rate of 2.18% and a trading volume of 38,300 shares, resulting in a transaction amount of 189 million yuan [1] - The fund flow on the same day indicated that the main funds had a net outflow of 11.97 million yuan, while speculative funds had a net outflow of 17.44 million yuan, and retail investors had a net inflow of 29.41 million yuan [1][3] Company Announcement Summary - Steady Medical announced its 2024 annual equity distribution plan, which was approved at the shareholders' meeting on May 21, 2025. The company will distribute a cash dividend of 2.50 yuan (including tax) for every 10 shares, totaling 145.58 million yuan [1] - The record date for the distribution is set for May 29, 2025, and the ex-dividend date is May 30, 2025. The cash dividends for A-share shareholders will be distributed by China Securities Shenzhen Branch, while some dividends will be distributed directly by the company [1] - The adjusted minimum selling price for shares is set at 48.90 yuan per share, and the grant price for the restricted stock incentive plan is adjusted to 15.14 yuan per share [1]