HEILAN HOME(SH:600398) Shenwan Hongyuan Securities·2025-07-06 10:43Investment Rating - The report maintains a positive outlook on the textile and apparel industry, indicating a "Buy" rating for the sector [2]. Core Insights - The textile and apparel sector outperformed the market, with the SW textile and apparel index rising by 1.4% from June 30 to July 4, 2025, surpassing the SW All A index by 0.2 percentage points [5]. - Recent industry data shows that from January to May 2025, the total retail sales of clothing, shoes, hats, and textiles reached 613.8 billion yuan, reflecting a year-on-year growth of 3.3% [31]. - The report highlights a new trade framework agreement between the U.S. and Vietnam, which includes a significant reduction in tariffs on Vietnamese goods, potentially benefiting manufacturers with integrated supply chains [11]. - The ISPO Shanghai 2025 outdoor sports exhibition showcased over 600 outdoor sports brands from nearly 30 countries, emphasizing trends in product innovation and sustainability [13]. - The report suggests that domestic demand recovery is a key investment theme for 2025, with a focus on quality domestic brands and their potential for growth [16]. Summary by Sections Industry Performance - The textile and apparel sector showed strong performance, with the SW textile and apparel index increasing by 1.4% during the specified period, while the SW apparel home textile index remained flat [5]. - The report notes that the textile manufacturing index rose by 1.0%, slightly underperforming the SW All A index [5]. Recent Developments - The U.S. announced a new trade agreement with Vietnam, reducing tariffs on Vietnamese goods from 46% to 20%, which is expected to positively impact manufacturers with local supply chains [11]. - The ISPO Shanghai 2025 exhibition highlighted five core product directions: wool technology, sustainable innovation, fluorine-free revolution, lightweight design, and sports fashion [13]. Market Data - From January to May 2025, China's textile and apparel exports totaled 116.67 billion USD, a year-on-year increase of 1.0%, with textile yarns and fabrics seeing a 2.5% increase [31]. - Cotton prices in China rose to 15,090 yuan per ton, reflecting a 0.6% increase, while international cotton prices showed a slight decline [32]. Investment Recommendations - The report recommends focusing on high-quality domestic brands and suggests specific companies for investment, including Anta Sports, Bosideng, and HLA [16].