Core Viewpoint - The Asian stock markets are showing a warming trend with most indices rising, influenced by global liquidity conditions and trade negotiations, particularly with the recent trade agreement between the US and UK [1][2]. Group 1: Stock Market Performance - The Southeast Asian stock markets have shown positive performance, with Vietnam's Ho Chi Minh Index leading with a weekly increase of 3.34% [1]. - Other Southeast Asian indices also reported gains, including Thailand's SET Index up 1%, Indonesia's JKSE up 0.25%, and Singapore's Straits Index up 0.81% [1]. - The Nikkei 225 in Japan rose by 1.83%, while the KOSPI in South Korea increased by 0.68% [1]. Group 2: Export Growth in Southeast Asia - Southeast Asian countries, particularly Vietnam, are experiencing rapid export growth, with Vietnam's April export year-on-year growth rate at 19.8%, exceeding expectations [3]. - Thailand's exports also exceeded expectations with a 14% year-on-year growth in February, marking the eighth consecutive month of growth [3]. - The region's export performance reflects its rising position in the global supply chain, driven by low production costs and favorable trade agreements [3][4]. Group 3: Monetary Policy and Interest Rates - Several countries in the Asia-Pacific region, including Indonesia and Thailand, have implemented interest rate cuts to stimulate economic growth and address global economic uncertainties [5][7]. - The Bank of Korea is expected to lower its benchmark interest rate to 2.25% by the end of Q3 2023 due to concerns over global economic conditions and potential impacts on exports [6][7]. - Japan's central bank remains cautious about raising interest rates, facing challenges such as declining real wages and sluggish domestic consumption [7][8].

Group 1 - The 2025 China (Nanchang) International Apparel Expo is being held from May 7 to 9, featuring over 650 domestic and international apparel buyers to support the export of Nanchang's apparel industry [1] - The expo's theme is "Digital Transformation, Sing the Brand," focusing on the integration of technology and fashion to enhance production capabilities and urban influence [1] - The exhibition covers an area of 30,000 square meters with four specialized zones: fabric and accessories, finished garments, industrial internet, and machinery, showcasing the latest achievements across the entire apparel industry chain [1] Group 2 - Nanchang's textile and apparel industry is one of the city's four key traditional industries, with products exported to over 100 countries and regions globally [1] - The city hosts more than 3,500 modern textile and apparel enterprises, with a spatial layout centered around Qingshan Lake District, supported by Nanchang County and Anyi County [1] - The Qingshan Lake District is the largest textile and apparel industry base in Jiangxi Province and the fourth largest in the country [1] Group 3 - The modern textile and apparel industry in Nanchang is accelerating its transformation towards high value-added and intelligent manufacturing [2] - Leading companies like Huaxing Knitting and Zhongtuo Garment are developing "5G + Smart Factories," incorporating advanced equipment and cutting-edge technology to enhance production efficiency and product quality [2] - The Qingshan Lake District Textile and Apparel Industry Association has successfully registered Jiangxi's first collective trademark for the textile and apparel sector, "Qingshan Lake Knitting," recognized as one of the "Top Ten Most Popular Regional Consumer Brands in Jiangxi" in 2022 [2]

美国耶鲁大学预算实验室4月10日发布的最新研究估算显示，美国的关税政策将使美国家庭平均每年损 失4700美元。报告显示，关税对服装和纺织品的影响尤为显著，短期内消费者将面临服装价格上涨64% 的局面。长期来看，服装价格将上涨27%。 据统计，目前美国只有2.5%的服装和1%的鞋类为本土制造，越南等亚洲国家则是美国服装鞋帽的主要 进口来源地。越南纺织服装协会的数据显示，2024年越南纺织品服装出口额达440亿美元，美国是其最 大市场，耐克、露露乐蒙等服装品牌超过35%的产能聚集在越南。随着美国所谓"对等关税"措施即将实 施，这些服装品牌将被迫提价。 智通财经APP获悉，4月11日，工业和信息化部办公厅发布关于开展纺织服装特色产业集群建设工作的 通知。 对重点培育的纺织服装特色产业集群，工业和信息化部统筹推动集群建设工作，加强集群间产业对接， 推动集群数字化转型升级，强化产业集群创意设计能力，提升特色产品附加值，提高特色产业集群的竞 争优势。 银河证券发布行业周报称，国内制造业服企布局从产能规模增长逐步向高质量增长转变，发力高质量客 户和中高端产品，而高价值产品价格具有一定的调控空间。纺织服企的国际化产能布局优势 ...

Core Viewpoint - The recent escalation of tariffs and countermeasures has put unprecedented pressure on import and export companies, but it also presents new opportunities for domestic brands as the focus shifts towards local consumption [1][2]. Group 1: Impact of Tariffs on International Brands - The introduction of tariffs has significantly affected international brands like Nike, which has seen its production costs in Vietnam, Indonesia, and China rise by over 30% [14][17]. - Nike's production in Vietnam has increased from 12% in 2019 to 51% currently, indicating a heavy reliance on this region for manufacturing [8]. - Adidas has experienced a decline in revenue in China, dropping from 45.46 billion yuan in 2018 to 30.97 billion yuan in 2024, with its market share decreasing from 20.74% to 13.08% [18]. Group 2: Opportunities for Domestic Brands - The shrinking market share of international brands due to tariffs creates opportunities for domestic companies to capture this market [23]. - Since 2018, domestic brands have gained traction, with 78.2% of consumers frequently purchasing local products [29]. - Li Ning has seen significant growth, with a revenue increase of 31.85% to 138.80 billion yuan in 2019, and its stock price surged nearly 20 times from 5 HKD to 102 HKD [31][33]. Group 3: Future Market Dynamics - The Chinese sports market is expected to grow, with the government aiming for the sports industry to reach a total scale of 5 trillion yuan by 2025 [41]. - The focus on domestic demand and innovation will likely become the main development line for companies in the face of international trade tensions [50]. - Investors are encouraged to focus on companies with high localization of revenue and competitive advantages in the domestic market [51].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 113.28, representing a potential upside of 27.1% from the current price of HKD 89.15 [4][6]. Core Insights - The company is expected to achieve a core net profit growth of 16.5% in 2024, indicating a continuation of high-quality growth [2][6]. - The overall performance of the company aligns with expectations, supported by strong revenue growth across all brands and a robust financial position with net cash of RMB 31.39 billion [6][7]. Financial Summary - Revenue for 2023 is reported at RMB 62.36 billion, with projections of RMB 70.83 billion for 2024, reflecting a year-on-year growth of 13.6% [3][7]. - The net profit attributable to shareholders for 2023 is RMB 10.24 billion, with a significant increase to RMB 15.60 billion in 2024, marking a growth of 52.4% [3][6]. - The basic earnings per share (EPS) is projected to rise from RMB 3.69 in 2023 to RMB 5.55 in 2024, a growth of 50.5% [3][6]. - The company’s operating profit for 2024 is expected to be RMB 16.60 billion, with an operating profit margin of 23.4% [6][7]. Brand Performance - The main brand, Anta, recorded a revenue increase of 10.65% to RMB 33.5 billion, driven by e-commerce growth and enhanced product performance [6][7]. - FILA brand revenue grew by 6.1% to RMB 26.63 billion, while other brands saw a remarkable increase of 53.7% to RMB 10.68 billion, primarily driven by DESCENTE and KOLON [6][7]. Future Outlook - For 2025, the company anticipates high single-digit growth for the Anta and FILA brands, with other brands expected to grow by over 30% [6][7]. - The company plans to increase its overseas business contribution to 15% over the next five years, with a focus on Southeast Asia and the Middle East [6][7].