Shenwan Hongyuan Securities·2025-05-25 12:38Investment Rating - The report maintains a "Positive" outlook on the textile and apparel industry, highlighting potential recovery and growth opportunities in the sector [2]. Core Insights - The textile and apparel sector has shown resilience, with the SW textile and apparel index outperforming the SW All A index by 0.6 percentage points during the week of May 19-23, despite a slight decline of 0.1% [4]. - Recent data indicates a 3.1% year-on-year increase in retail sales for clothing, shoes, and textiles in the first four months of 2025, amounting to 493.9 billion yuan [23]. - Exports of textiles and apparel reached 90.5 billion USD in the first four months, reflecting a 1.1% year-on-year increase, with textile yarns and fabrics seeing a 4% rise [27]. - The report emphasizes the importance of domestic demand recovery as a key investment theme for 2025, particularly in light of changing international trade dynamics [12]. Summary by Sections Industry Performance - The textile and apparel sector outperformed the market, with the SW textile and apparel index down 0.1%, while the SW All A index fell by 0.7% [4]. - The SW apparel and home textiles index decreased by 1.3%, and the SW textile manufacturing index fell by 2.7%, both underperforming the SW All A index [4]. Recent Industry Data - Retail sales for clothing, shoes, and textiles totaled 493.9 billion yuan from January to April, marking a 3.1% increase year-on-year [23]. - Textile and apparel exports amounted to 90.5 billion USD in the first four months, with a 1.1% increase year-on-year; April exports alone were 24.2 billion USD, up 1.5% [27]. Market Outlook - The report notes that the recent U.S.-China trade discussions have led to a recovery in shipments from Chinese textile companies to the U.S., although this is primarily a restoration of previously paused orders rather than a significant increase in new orders [9]. - Short-term opportunities are identified in companies that can quickly respond to the "export rush" due to tariff relief, with recommendations for firms like Weixing and Xin'ao [9][10]. - Long-term growth is expected for major manufacturers like Huayi and Shenzhou, which have established independent supply chains less affected by tariffs [10]. Company Highlights - Amer Sports reported a strong Q1 performance with revenues of 1.473 billion USD, a 23% increase year-on-year, and a net profit increase of 196% [11]. - The report suggests that domestic demand improvement is crucial for 2025, with a focus on new outdoor activities, new business models, and supportive policies [12][13].