纺织服饰：内销尚待拐点，出口稳中续升

Investment Rating - The textile and apparel industry maintains a "Hold" recommendation [4] Core Views - Domestic sales are under pressure, while exports continue to rise steadily. The overall domestic sales revenue fluctuated within expectations in Q3, with profits declining more than expected. The sports apparel sector performed better than the industry average [1][10] - Leading manufacturers showed stable performance in Q3, with a significant recovery in overseas orders following a destocking phase in 2023. Major footwear manufacturer Huali Group reported a 18.50% year-on-year revenue increase in Q3 [1][10] Summary by Sections Industry Q3 Review - Domestic sales are still seeking a turning point, with overall revenue under pressure and profits declining more than expected. The casual wear segment saw a significant drop in profit margins due to decreased foot traffic and increased fixed costs. Mid-to-high-end menswear showed resilience, with a smaller decline compared to other segments [1][10] - The textile manufacturing sector maintained robust growth, with major companies benefiting from high-quality clients and international production capacity [1][10] Market Performance - The textile and apparel industry saw a 5.35% increase in stock prices during the week of November 4 to November 8, with the textile manufacturing sub-sector rising by 4.05% and the apparel and home textile sub-sector increasing by 7.11% [2] Raw Material Price Changes - Cotton prices have decreased, with the China Cotton Price Index at 15,338 CNY/ton, down 50 CNY/ton from the previous week and down 1,124 CNY/ton since the beginning of the year [2] Investment Recommendations - The report is optimistic about terminal consumption recovering in Q4 2024, supported by high-density policy implementation. It suggests focusing on quality leading companies with valuation recovery potential and stable dividend rates, such as Hailan Home, Bi Yin Le Fen, and Bosideng [2]