Investment Rating - The report assigns an investment rating of "A" for the textile and apparel industry for the fiscal year 2025/2026 [2]. Core Insights - The textile and apparel sector has experienced a decline of 3.2% year-to-date, underperforming the CSI 300 index by 1.9 percentage points, ranking 23rd among 31 industries [5][6]. - The performance of individual stocks has varied, with notable gains in companies diversifying into emerging technology sectors and those benefiting from moderate raw material price increases [5]. - In the U.S. market, the textile and apparel sector has seen a decline of 10.7%, with only a few companies like Under Armour and Tapestry showing positive growth [9][10]. Summary by Sections Year-to-Date Performance - The SW textile and apparel index has decreased by 3.2%, while the SW apparel and home textiles and SW textile manufacturing indices have dropped by 2.0% and 5.9%, respectively [5][7]. - In the Hong Kong market, the SW textile and apparel index fell by 3.7%, with the apparel and home textiles and textile manufacturing indices down by 2.3% and 4.9% [7][8]. Stock Performance - Top-performing stocks include Harsen Co. (+46.4%), Jujie Microfiber (+23.8%), and Tanshan Road (+20.4%) in the mainland market, while Tianhong International Group (+48.5%) and Li Ning (+14.8%) led in Hong Kong [5][7]. Retail Sales Growth - In January-February 2026, China's textile and apparel retail sales grew by 10.4%, significantly outpacing the overall retail sales growth of 2.8%, ranking 4th among 16 major industries [14][15]. Export Trends - For 2025, China's textile and apparel exports are projected to grow by 0.5% and decline by 5.0%, respectively, while Vietnam's textile and apparel exports are expected to increase by 9.3% and 5.4% [18][19]. Cotton Prices - As of March 19, 2026, cotton prices have increased by 7.5% for 3128B cotton, 5.3% for ICE 2 cotton, and 6.8% for the Cotlook A index since the beginning of the year [20][21]. Supply Chain Dynamics - The report highlights that the manufacturing landscape is shifting towards multi-origin sourcing, with stricter traceability across the supply chain, which may impact order cycles and production capabilities [39][40].