Core Viewpoint - The social services sector has shown growth in both revenue and profit in the first half of 2025, with total revenue reaching 95.436 billion yuan, a year-on-year increase of 5.44%, and net profit attributable to shareholders totaling 4.870 billion yuan, up 1.13% year-on-year [2][5]. Group 1: Social Services Sector - In the first half of 2025, the social services sector's total revenue was 95.436 billion yuan, ranking 9th among primary industries in Shenwan, while net profit was 4.870 billion yuan, ranking 16th [2]. - The tourism and scenic spots sector achieved revenue of 16.610 billion yuan, a year-on-year increase of 4.39%, but net profit decreased by 4.30% to 1.041 billion yuan [3]. Group 2: Tourism and Scenic Spots - The recovery in resident travel demand and supportive policies have contributed to the revenue rebound in the tourism and scenic spots sector [3]. - The introduction of policies such as a 240-hour visa-free entry and immediate tax refunds for outbound tourists has boosted inbound tourism [3]. Group 3: Hotel and Catering Sector - The hotel and catering sector reported revenue of 14.056 billion yuan, a decline of 3.40%, with net profit dropping significantly by 40.36% to 0.708 billion yuan [4]. - The weak consumer demand has pressured profits in this sector, but there is potential for recovery if the consumption environment improves in the second half of the year [4]. Group 4: Investment Recommendations - To support stable economic growth, boosting consumption and expanding domestic demand are seen as core strategies [5]. - The potential in lower-tier markets is expected to strengthen the consumption base, while overseas expansion may create new growth opportunities [5]. - The implementation of visa-free policies and the establishment of duty-free shops are anticipated to further stimulate the tourism market [5].

Investment Rating - The industry rating is "Recommended" [4] Core Insights - The report highlights that Tmall and Taobao platforms experienced negative growth in various categories in April 2025, with the highest growth seen in Jin Hong Group [7] - Deckers reported a 16.3% revenue increase to $4.986 billion for FY2025, with operating profit rising by 27.1% to $1.179 billion, and a gross margin increase of 2.3 percentage points to 57.9% [15] - VF Corporation's revenue decreased by 4% to $9.504 billion for FY2025, with a net loss of $190 million, although the loss narrowed compared to the previous year [16] Summary by Sections Company Performance - Tmall and Taobao platforms saw negative growth across categories in April 2025, with Jin Hong Group showing the highest growth [7] - Deckers' FY2025 revenue grew by 16.3% to $4.986 billion, with operating profit increasing by 27.1% to $1.179 billion, and a gross margin of 57.9% [15] - VF Corporation's revenue fell by 4% to $9.504 billion, with a net loss of $190 million, but the loss was less than the previous year [16] - Amphenol's Q1 2025 revenue was $1.473 billion, with a net profit increase of 2539.22% [17] Market Trends - The textile and apparel industry saw a decline in stock performance, with the SW textile and apparel sector down 1.31% [20] - The cotton price index in China increased by 0.29% as of May 23, 2025, while the medium import cotton price index rose by 1.06% [30] - The USDA forecasts a 2.7% decrease in global cotton production for the 2025/2026 season [40] Investment Recommendations - The report suggests short-term recommendations for companies with high U.S. revenue exposure and significant prior declines, while mid-term recommendations focus on companies with high overseas exposure [18][19] - Long-term recommendations include companies with growth potential, such as Zhejiang Natural and Kai Run Co., which have favorable market positions [19]