GOLDEN SUN SECURITIES·2026-02-23 10:45Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel sector, including Li Ning, Anta Sports, Shenzhou International, and Huayi Group, among others [5][10][31]. Core Insights - The textile and apparel industry is experiencing a steady growth in exports from Southeast Asian countries, particularly Vietnam, which continues to outperform China in this regard [2][21]. - The report anticipates a recovery in orders for apparel manufacturing companies in 2026, with an expectation of improved profitability quality compared to previous periods [1][22]. - The sportswear segment is expected to show resilience and long-term growth potential, with companies like Li Ning and Anta Sports being highlighted for their strong inventory management and marketing strategies [3][28]. Summary by Sections Weekly Topic - Several apparel manufacturers reported their January 2026 revenue, with Feng Tai Enterprises, Ruo Hong, and Yu Yuan Group showing year-on-year changes of -1.8%, +7.6%, and +0.6% respectively [1][13][14]. - The overall performance of apparel manufacturing shipments is expected to be flat in Q4 2025, with short-term profit margins under pressure due to order fluctuations [1][22]. Industry Export Performance - In 2025, China's apparel and accessories export value is projected to be $151.2 billion, down 5.0% year-on-year, while textile yarns and fabrics are expected to see a slight increase of 0.5% [2][21]. - Vietnam's textile exports in January 2026 reached $3.25 billion, up 8.3% year-on-year, and footwear exports were $2.05 billion, up 7.8% [2][21]. Company Recommendations - Li Ning is recommended due to its anticipated brand strength during the Olympic cycle, with expected net profit growth of 5.8% in 2026 [3][28]. - Anta Sports is highlighted for its excellent operational capabilities, with a projected net profit increase of 6.4% in 2026 [3][28]. - Shenzhou International is recommended for its cost-effective valuation and expected stable growth in revenue and profit in 2026 [30][31]. Inventory and Order Trends - The industry inventory is considered healthy, with expectations for steady improvement in downstream orders [30]. - Key brands are expected to see a recovery in orders, with some brands outperforming market expectations [22][24]. Market Dynamics - The report notes that brand clients are expected to adopt a more flexible ordering rhythm due to cautious economic outlooks, which may lead to differentiated performance among brands [22][27]. - The overall competitive landscape is expected to optimize in the medium to long term, benefiting integrated and internationalized manufacturers [27].