Investment Rating - The industry investment rating is "Overweight" [12]. Core Insights - The report highlights a positive outlook for cotton spinning companies' interim reports, suggesting a focus on the value of mid-to-upstream overseas production capacity in manufacturing [2][3]. - The report indicates a decrease in the fund holdings for the apparel and textile manufacturing sectors in Q2 2025, with specific percentages noted [2][3]. - The report emphasizes the expected improvement in interim reports and the expansion of new retail formats, recommending specific companies based on their performance and market conditions [12]. Summary by Sections Market Review - The textile and apparel sector saw a 1.45% increase in the A-share market, underperforming the CSI 300 by 0.24 percentage points [7]. - The textile manufacturing sector rose by 2.34%, while the apparel and home textile sector increased by 1.37% [7]. - The current PE valuation for the textile and apparel sector is 19.42 times, below the historical average of 25.09 times [9]. Industry Data Tracking - In June 2025, retail sales of clothing increased by 1.7%, while textile exports decreased by 0.3% [15]. - Cumulative textile and apparel exports from January to June 2025 reached approximately $143.99 billion, with a year-on-year growth of 0.42% [17]. - Cotton prices in China fell by 0.26% to 15,549 RMB per ton, while polyester prices showed mixed trends [19]. Key Announcements and News - Tianhong International Group announced a profit forecast indicating a 60% year-on-year increase in net profit for the first half of 2025 [31]. - Puma has lowered its 2025 performance expectations due to lower-than-expected sales growth and potential impacts from new tariffs [35]. - Mango reported a 12% increase in revenue for the first half of 2025, driven by strong international business performance [36].