Shenwan Hongyuan Securities·2025-06-02 09:43Investment Rating - The report maintains a "Positive" outlook on the textile and apparel industry, particularly highlighting the recovery in brand sales and the potential for export growth due to easing tariff pressures [1]. Core Insights - The textile and apparel sector outperformed the market, with the SW textile and apparel index rising by 1.6% from May 26 to May 30, 2025, surpassing the SW All A index by 1.7 percentage points [3]. - Recent industry data indicates a retail sales total of 493.9 billion yuan for clothing, shoes, and textiles from January to April 2025, reflecting a year-on-year growth of 3.1% [29]. - Exports of textiles and apparel reached 90.5 billion USD in the same period, marking a 1.1% increase year-on-year, with textile yarns and fabrics seeing a 4% rise [29]. - The report emphasizes the structural investment opportunities arising from the recent U.S. trade court ruling against unilateral tariffs, which may lead to a significant recovery in export expectations for Chinese manufacturers [7][8]. Summary by Sections Market Performance - The textile and apparel sector showed strong performance compared to the market, with notable gains in specific stocks such as Annil and Jinfa Labi, which rose by 20.1% and 12.2% respectively [3][6]. Industry Data - Retail sales in the clothing, shoes, and textiles category totaled 493.9 billion yuan from January to April 2025, with a year-on-year increase of 3.1% [26]. - Textile and apparel exports amounted to 90.5 billion USD, with a 1.1% year-on-year increase, while April exports alone reached 24.2 billion USD, up 1.5% [29]. Tariff and Trade Developments - The U.S. International Trade Court ruled against the legality of tariffs imposed under the International Emergency Economic Powers Act, indicating a potential easing of trade barriers for the textile sector [7]. - The report suggests that the recent U.S.-China trade discussions have led to a recovery in export orders, particularly for textile manufacturers, creating new investment opportunities [8]. Consumer Trends - The 618 shopping festival saw a surge in sales for outdoor sports brands, with FILA leading in multiple categories, indicating a positive trend in consumer demand for sports apparel [10]. - The report highlights the importance of domestic consumption recovery as a key driver for the industry in 2025, with a focus on quality domestic brands [12].