Shenwan Hongyuan Securities·2025-05-11 14:15Investment Rating - The textile and apparel industry is rated positively, with a strong performance observed in the sector compared to the overall market [1][4]. Core Insights - The textile and apparel sector outperformed the market, with the SW textile and apparel index rising by 3.5% from May 6 to May 9, surpassing the SW All A index by 1.2 percentage points [1][4]. - Recent industry data indicates a 3.4% year-on-year increase in retail sales for clothing, shoes, and textiles, totaling 386.9 billion yuan from January to March [1][32]. - Exports of textiles and apparel reached 90.5 billion USD from January to April, marking a 1.1% year-on-year increase, with textile yarns and fabrics seeing a 4% rise [1][32]. - Cotton prices have shown slight increases, with the national cotton price B index at 14,121 yuan per ton, up 0.1% [1][37]. Summary by Sections Market Performance - The textile and apparel sector showed strong performance, with the SW textile and apparel index increasing by 3.5%, outperforming the SW All A index by 1.2 percentage points [1][4]. - The SW clothing and home textile index rose by 2.7%, while the SW textile manufacturing index increased by 5.4% [1][4]. Industry Data - Retail sales for clothing, shoes, and textiles totaled 386.9 billion yuan from January to March, reflecting a 3.4% year-on-year growth [1][32]. - Textile and apparel exports amounted to 90.5 billion USD from January to April, with a 1.1% year-on-year increase [1][32]. - In April, textile and apparel exports reached 24.2 billion USD, a 1.5% increase year-on-year [1][32]. Cotton Prices - As of May 9, the national cotton price B index was reported at 14,121 yuan per ton, with a weekly increase of 0.1% [1][37]. - The Zhengzhou cotton main contract was at 12,950 yuan per ton, up 1.6% for the week [1][37]. - International cotton prices showed mixed trends, with the M index at 75 cents per pound, up 0.3%, while the ICE No. 2 cotton main contract fell by 2.4% [1][37]. Investment Recommendations - The report suggests focusing on high-quality textile manufacturing companies due to positive signals from recent US-China trade talks, which may catalyze a rebound in the sector [3][9]. - Recommended stocks include Anta Sports, TBO, Bosideng, and 361 for the sports and outdoor segment, as well as Luolai Life, Mercury Home Textile, and Senma Clothing for home textiles and children's wear [3][9].