东兴轻纺：内销延续复苏，国补继续推进

Investment Rating - The industry investment rating is "Positive" [5] Core Viewpoints - The home furnishing sector continues to recover, supported by national subsidies, while exports face pressure. Domestic real estate sales are on a downward trend, with May construction data down 22.0% year-on-year, suppressing natural demand for home furnishings. However, May retail sales for home furnishings increased by 25.6% year-on-year, driven by national subsidies [10][11] - In the textile and apparel sector, there is a slow recovery in domestic sales, with May retail sales of consumer goods increasing by 6.4% year-on-year, exceeding expectations. The apparel and home textile industry is expected to benefit from favorable policies, with a focus on quality brands like HLA and Fuanna [12] Summary by Sections Home Furnishing - National subsidies continue to support home furnishing demand, despite a decline in real estate sales. In May, the sales area of commercial housing decreased by 5.5% year-on-year, and sales revenue fell by 6.8% year-on-year. The overall support from national subsidies helps stabilize demand, with key companies showing low P/E ratios and high dividend willingness, making them attractive for investment [10][11] - Exports of home furnishings are declining, with May export values down 9.4% year-on-year. The adjustment of tariffs may accelerate the transfer of overseas production capacities for export companies, affecting domestic export data. The U.S. retail inventory levels are high, leading to a decrease in purchasing intentions [11] Textile and Apparel - The textile and apparel sector is experiencing a slow recovery in domestic sales, with May retail sales of clothing and accessories increasing by 4.0% year-on-year. The industry is expected to benefit from policy support, with a focus on quality brands such as Anta and Li Ning. Domestic brands are accelerating their group and international expansion [12] - Textile exports from January to May increased by 2.5% year-on-year, while clothing exports slightly decreased by 0.5%. The export growth rate has slowed due to tariff impacts from the U.S. [12]