Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5][15]. Core Insights - The company reported a revenue of 1.5 billion in Q3 2025, a decrease of 6% year-on-year, while the net profit attributable to shareholders increased by 20% to 140 million, driven mainly by gains from the sale of financial assets [1]. - For the first three quarters of 2025, the company achieved a revenue of 4.3 billion, down 2% year-on-year, but net profit rose by 75% to 500 million, with a non-recurring net profit of 320 million, down 8% [1]. - The sales revenue of fabrics slightly decreased, while shirt sales increased due to higher volumes, with prices remaining stable [1]. - The company is accelerating the production capacity of its overseas high-end fabric product line, which is expected to contribute positively to future sales [1][2]. Financial Performance Summary - The company’s revenue is projected to be 5.96 billion in 2023, with a growth rate of -14.08%, and is expected to reach 7.79 billion by 2027, with a growth rate of 10.99% [4][10]. - The net profit attributable to shareholders is forecasted to be 403.44 million in 2023, increasing to 632.91 million by 2027, reflecting a growth rate of 14.52% [4][10]. - Earnings per share (EPS) is expected to be 0.49 in 2023, rising to 0.77 by 2027 [4][10]. - The company’s price-to-earnings (P/E) ratio is projected to be 14.50 in 2023, decreasing to 9.25 by 2027 [4][10]. Industry Position - The company possesses a comprehensive vertical supply chain from spinning, dyeing, weaving, to garment manufacturing, enhancing its quality control capabilities in high-end color-woven fabrics [2]. - It has established overseas production bases and design institutions, allowing it to leverage international resources and strengthen its competitive position in the color-woven fabric market [2].

Group 1: Sales Performance - Fabric sales revenue in the first three quarters showed a slight year-on-year decline, while shirt sales revenue increased due to higher sales volume with stable prices [3] - Domestic sales slightly decreased compared to the same period last year, while the export ratio increased, with growth in the European and American markets as well as the Japanese and Korean markets, but a slight decline in the Southeast Asian market [3] Group 2: Production Capacity Utilization - Fabric production capacity utilization remained stable in the third quarter, with a slight increase compared to the previous quarter, but a year-on-year decline; clothing production capacity utilization was higher than that of fabric, remaining stable both quarter-on-quarter and year-on-year [3] Group 3: Financial Performance - Financial expenses in the third quarter significantly decreased year-on-year, primarily due to increased exchange gains [3] - Investment income and fair value changes showed significant year-on-year fluctuations, mainly due to the sale of trading financial assets and the fair value changes of financial assets held by the company [3] Group 4: Project Updates - The "Overseas High-end Fabric Product Line Project (Phase I)" has accelerated capacity release this year, with sales growth, and the company will focus resources to expedite its production efficiency [3] - The "Functional Fabric Smart Ecological Park Project (Phase I)" has seen reduced losses in the first three quarters compared to the same period last year, with a stable customer base and plans for further capacity release [3]

Group 1: Sales Performance - Fabric sales revenue decreased by 7.85% year-on-year, with both sales volume and price declining [2] - Shirt sales revenue increased by 24.82% year-on-year, primarily due to an increase in sales volume, while prices remained stable [2] Group 2: Regional Revenue Performance - Domestic market revenue slightly declined compared to the same period last year, while the European, American, and Japanese markets experienced slight growth [3] - Southeast Asian market remained stable, and new market development contributed to overall revenue being roughly flat compared to last year [3] Group 3: Impact of Tariffs - The impact of reciprocal tariffs from the U.S. began to show gradually after May 2025, with customers delaying or postponing orders due to cautious sentiment [3] - Second-quarter apparel sales experienced a slight decline compared to the first quarter, although there are signs of demand for replenishment as U.S.-China tariff issues have shown signs of easing [3] Group 4: Project Progress - The "Functional Fabric Smart Eco-Park Project (Phase I)" and "Overseas High-End Fabric Product Line Project (Phase I)" are currently in the technical and capacity ramp-up stages due to market demand fluctuations and the time required for new technology development [3] - The company will concentrate resources to assist these projects in reaching production and efficiency targets [3] Group 5: Product Profitability - Knitted fabric products are performing well in terms of profitability, with continuous sales growth [3] - Competitive advantages in cost for functional and leisure fabrics still need improvement [3]