GOLDEN SUN SECURITIES·2026-02-01 09:05Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel industry, including Li Ning, Anta Sports, Shenzhou International, and others [9][21][29]. Core Insights - The textile and apparel industry is experiencing a low overall fund holding ratio, with a total market value of approximately 9.76 billion yuan at the end of Q4 2025, slightly down from 10.31 billion yuan at the end of Q3 2025. However, the proportion of heavy holdings increased from 0.13% to 0.25% [1][12]. - The report highlights the resilience of the sports footwear and apparel sector, predicting it will outperform the broader apparel market in the long term. Companies like Li Ning and Anta Sports are expected to manage inventory effectively and benefit from upcoming marketing initiatives [2][17]. - The report emphasizes the healthy inventory levels in the industry, anticipating that stable replenishment from downstream will lead to increased orders for upstream manufacturers [3][18]. - The report suggests focusing on quality stocks with stable growth or potential for performance reversal, particularly in the brand apparel segment, where companies like HLA and Luolai Living are highlighted for their growth prospects [4][19]. Summary by Sections Fund Position Analysis - The textile and apparel sector's fund holding ratio remains low, with significant increases in holdings across sub-sectors such as home textiles, textile manufacturing, and accessories [1][12][15]. Market Performance - The textile and apparel sector underperformed compared to the CSI 300 index, with declines noted in both textile manufacturing and brand apparel segments [24][25]. Key Company Recommendations - Li Ning is recommended due to its expected brand strength during the Olympic cycle, with projected profits of 2.74 billion yuan in 2025 and a growth forecast for 2026 [2][17]. - Anta Sports is highlighted for its strong operational capabilities, with expected profits of 13.2 billion yuan in 2025 and growth in 2026 [2][17]. - Shenzhou International is recommended for its cost-effectiveness and positive customer trends, with a projected PE ratio of 11 times for 2026 [3][18]. - HLA is expected to see stable profit growth, with a projected PE ratio of 12 times for 2026 [4][19].