Group 1 - The company has established a joint venture with RZHL, each holding 50% equity, to enhance its presence in the European steel cord market and respond to international supply chain demands [1] - The joint venture will serve as the investment entity for the company's European steel cord production base project, with Zhao Yue appointed as the project leader responsible for due diligence [1] - The project aims to increase market share in Europe and extend to the Middle East and Africa, mitigating risks from policy changes and shipping [1] Group 2 - The newly established Super New Materials Company will focus on the research and development of micro fibers and micro ropes, particularly in the robotics core components sector [2] - The company aims to leverage its expertise in metal materials to explore downstream applications and investment opportunities in the "Super New Materials+" ecosystem [2] - The initiative is part of the company's strategy to innovate and transform its business, positioning itself as a leading supplier of premium steel cords and a platform for super new materials [2]

Investment Rating - The industry rating is "Recommended" [5] Core Insights - On reported record net sales of 749 million Swiss Francs for FY25Q2, a 32% increase (currency neutral +38%), exceeding market expectations, driven by strong DTC performance and growth in the Asia-Pacific region [2][18] - Gross margin improved by 1.6 percentage points to 61.5%, benefiting from a higher DTC share, reduced shipping costs, and a weaker dollar [2][18] - The company incurred a net loss of 41 million Swiss Francs, with a net profit margin declining from 5.4% to -5.5%, primarily due to a 140 million Swiss Franc foreign exchange loss [2][18] - Revenue growth by region: EMEA +42.92%, Americas +16.84%, Asia-Pacific +101.35% [2][18] - DTC revenue increased by 54.3% to 310 million Swiss Francs, with DTC share rising to a historical high of 41.1% [2][18] - The company raised its FY25 revenue growth guidance to 31% (previously 28%) and adjusted gross margin guidance to 60.5%-61% [2][18] Summary by Sections Company Performance - Yu Yuan Group reported H1 2025 revenue of 406 million USD, a 1.1% increase, but net profit decreased by 7.2% [3][19] - 361 Degrees reported H1 2025 revenue of 580 million CNY, an 11% increase, with net profit rising by 8.6% [3][19] - Li Ning reported H1 2025 revenue of 173 million CNY, a 7.9% increase, but net profit fell by 13.4% [4][20] - Bailing Dongfang reported H1 2025 revenue of 359.1 million CNY, a 9.99% decrease, but net profit increased by 67.53% [4][21] Market Trends - The textile and apparel sector underperformed, with the SW textile and apparel index down 1%, lagging behind the Shanghai Composite Index by 2.7% [24] - Cotton prices in China increased by 1.43% this week, with the 3128B index at 15,214 CNY/ton [8][38] - The textile and apparel export for January to July 2025 grew by 0.53%, totaling 170.74 billion USD [55] Consumer Insights - Online sales data from Taobao and Tmall showed improvements in July 2025 for sports and leisure apparel, with notable growth from brands like Baoxini [22][22] - The overall retail sales in China for January to July 2025 increased by 4.8%, with online retail sales growing by 9.2% [22][25]

Core Viewpoint - Xiamen Tungsten (600549.SH) is actively promoting the application of tungsten wire in robotic tendon-related fields, highlighting its excellent fatigue resistance and tensile strength, which are crucial for high-precision movements in surgical robots [1] Company Summary - The company has indicated that tungsten wire is utilized in the production of micro-mechanical cables for surgical robots, ensuring high precision without compromising strength [1] - Xiamen Tungsten is focusing on expanding the use of tungsten wire in the robotics sector, particularly in applications related to tendon strings [1]

Group 1 - Jian Sheng Group reported H1 2025 revenue, net profit attributable to shareholders, net profit excluding non-recurring items, and operating cash flow of 1.17 billion, 142 million, 136 million, and 252 million yuan respectively, with year-on-year growth of 0.19%, -14.46%, -15.84%, and 146.96% [1] - The decline in net profit is attributed to fluctuating tariffs, a weak market, and overstaffing, compounded by increased management expenses due to new executive hires [1] - In Q2 2025, revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 610 million, 82 million, and 75 million yuan respectively, with year-on-year declines of 1.52%, 2.23%, and 8.39% [1] Group 2 - Under Armour reported FY2026 Q1 revenue, operating profit, and net loss of 113.4 million, 3 million, and -3 million USD respectively, with year-on-year changes of -4.2%, a turnaround to profit, and a 99.1% increase in losses [2] - By product category, revenue from apparel, footwear, and accessories was 74.7 million, 26.6 million, and 10 million USD respectively, with year-on-year changes of -1.5%, 14.3%, and 8.1% [2] - The company expects FY2026 Q2 revenue to decline by 6% to 7%, considering ongoing uncertainties in trade policies and macroeconomic conditions [2] Group 3 - Huali Group reported H1 2025 revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 12.661 billion, 1.664 billion, and 1.677 billion yuan respectively, with year-on-year changes of 10.36%, -11.42%, and -9.12% [3] - In Q2 2025, revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 7.308 billion, 902 million, and 926 million yuan respectively, with year-on-year changes of 9.0%, -17.3%, and -13.3% [3] - The company is adjusting its customer structure and resource allocation to ensure timely delivery of orders amid macroeconomic pressures and rising costs due to trade disputes [3] Group 4 - The textile and apparel industry is experiencing weak brand consumption, with home textiles performing slightly better than clothing due to online sales and subsidies [4] - Manufacturing orders were poor from April to May, and Q3 is expected to remain pessimistic, prompting recommendations for companies with strong profit certainty and growth recovery logic [4] - Online sales data from Taobao and Tmall in July 2025 showed improvements in the growth rate of sports and leisure apparel, with notable increases in specific categories [4] Group 5 - As of August 7, the China Cotton 3128B Index was 15,191 yuan/ton, with a 0.25% increase, while the medium import cotton price index was 13,420 yuan/ton, also up by 0.25% [6] - The domestic cotton price is higher than the foreign cotton price by 1,771 yuan/ton, with the China Cotton 3128B Index up 3.27% year-to-date [6]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][5][61] Core Viewpoints - The company leverages "Ultra-High Molecular Weight Polyethylene (UHMWPE) + Aramid" high-performance fibers as dual drivers, establishing a product system centered on "fiber + composite materials" [3][4] - The company is a global leader in the UHMWPE fiber industry, with significant demand growth expected from the defense products and robotics tendon rope sectors [3][4] - The acquisition of the domestic aramid industry leader, Chaomeisi, opens a second growth curve for the company [3][4][42] - The company’s revenue and net profit are expected to improve sequentially throughout 2024, despite a decline in profitability in 2023 due to various industry challenges [4][12] Summary by Sections Company Overview - The company has over 30 years of experience in the UHMWPE fiber field and has established a comprehensive industrial chain layout [3] - As of the end of 2024, the company’s UHMWPE fiber production capacity is 7,960 tons/year, ranking second in China and third globally [3][4] Financial Performance - The company’s revenue for 2024 is projected to be 650 million yuan, a year-on-year increase of 1.4%, with quarterly revenues of 110 million, 140 million, 170 million, and 220 million yuan [4][12] - The net profit attributable to shareholders is expected to be 130 million yuan, a year-on-year decrease of 15.3% [4][12] Market Demand - The demand for UHMWPE fibers is expected to grow rapidly in military equipment, marine engineering, and aerospace sectors [3][4][22] - The global demand for UHMWPE fibers is projected to increase, with China's demand growing at a compound annual growth rate of 14.6% from 2018 to 2023 [24][25] Production Capacity and Expansion - The company plans to increase its UHMWPE fiber production capacity by 2,640 tons/year by the end of 2024, including new projects in Xintai and Youhebo [14][35] - The acquisition of Chaomeisi adds 5,000 tons/year of aramid fiber capacity and 2,000 tons/year of aramid paper capacity [4][42] Research and Development - The company emphasizes R&D investment, with R&D expenses reaching 25.61 million yuan in the first nine months of 2024, representing a stable growth trend [20][21] - The company aims to increase the proportion of domestic raw materials in its production process to reduce costs [36]