Investment Rating - The report assigns a rating of "Buy" for the company [2]. Core Views - The company is considered a high-quality target with low valuation and high dividends, showing potential for growth due to a favorable supply-demand rebalancing and moderate raw material prices [3]. - The company has a strong customer base and is expected to leverage its mature overseas production capacity to secure more orders in the future [3]. Financial Summary - The projected total revenue for 2024 is HKD 5,061 million, with a year-on-year growth of 20.5%. The net profit attributable to the parent company is expected to be HKD 608 million, reflecting a significant increase of 75.3% [5]. - The company’s PE ratio is projected to be 4.80 in 2024, indicating a low valuation compared to historical averages [5]. Company Overview - The company has over 20 years of experience in elastic fabric production and has established itself as a leader in the lingerie materials market, providing comprehensive procurement solutions for well-known brands [16]. - The company has successfully transitioned to become a significant supplier of sports fabrics, with major clients including ARC'TERYX, NIKE, and adidas [16][27]. Growth Drivers - The company’s revenue has shown a compound annual growth rate (CAGR) of 10.4% from 2011 to 2024, with sports fabric revenue growing at a CAGR of 38.2%, outpacing other categories [44]. - The demand for sports apparel is expected to continue growing, benefiting elastic fabric suppliers as consumer health awareness increases [59]. Future Outlook - The company is well-positioned to benefit from the adjustment of production capacity under new trade dynamics, with a focus on high-quality clients and long-term partnerships [11]. - The company has maintained a stable dividend payout ratio of around 50%, with a dividend yield exceeding 9% for four consecutive years [11].

Investment Rating - The industry investment rating is "Increase" for several recommended companies, indicating a potential upside of over 15% relative to the CSI 300 index [12][31]. Core Insights - The textile and apparel industry experienced a decline in export growth in August, with China's textile and apparel exports totaling approximately $26.54 billion, a year-on-year decrease of 5% [16]. - The report highlights the resilience of the sports segment, recommending companies such as Anta Sports, Li Ning, and Xtep International, while also suggesting opportunities in the luxury segment with brands like Prada and Samsonite [12][16]. - The report notes a slowdown in revenue growth for several Taiwanese manufacturers in August, with companies like Yu Yuan and Zhi Qiang reporting declines of 8.80% and 5.48% year-on-year, respectively [16]. Summary by Sections Market Review - The A-share market for the textile and apparel sector rose by 0.67% in the week of September 8-12, 2025, underperforming the CSI 300 index by 0.71 percentage points [6]. - The textile manufacturing sector increased by 1.52%, while the apparel and home textile sector saw a modest rise of 0.21% [6]. Industry Data Tracking - Retail sales for clothing, shoes, and textiles grew by 1.8% in July 2025, while textile and apparel exports fell by 5.05% in August [16][19]. - The report indicates that the inventory-to-sales ratio for U.S. apparel wholesalers increased slightly, suggesting a potential oversupply issue [16]. Recommended Stocks and Valuation - The report provides a detailed valuation forecast for recommended stocks, with Anta Sports projected to have a net profit of 131.8 billion yuan in 2025, and a PE ratio of 18 [12]. - Other recommended stocks include Li Ning, Xtep International, and Prada, all rated for "Increase" with expected growth in net profits over the next few years [12]. Key Announcements and News - Anta announced plans to open 1,000 stores in Southeast Asia over the next three years, indicating strong growth potential in international markets [24]. - H&M opened its first brand experience center in Shanghai, marking a significant step in its retail strategy in China [25].

Group 1: Inflation Trends - August CPI year-on-year growth is -0.4%, with a month-on-month change of 0.0%[10] - August PPI year-on-year growth is -2.9%, with a month-on-month increase to 0.0%[10] - Core CPI year-on-year improved significantly to 0.9% compared to the same period in 2024[15] Group 2: Impact of Policies - The effects of the anti-involution policy are beginning to show in the August PPI data, with mining industrial prices recovering for three consecutive months[22] - Prices in the black chain have stabilized, with coal mining and washing industry increasing by 2.8% month-on-month[22] - The rise in bulk commodity prices has positively impacted downstream manufacturing industries, with factory prices showing a month-on-month recovery of -0.05%[22] Group 3: Food Price Dynamics - Food prices, particularly pork and eggs, are the main drag on CPI, contributing -0.81% to the index[13] - Pork prices contributed -0.29% to CPI, while other food items contributed -0.51%[13] - The demand for pork is expected to recover in September, potentially lifting prices from their current low[15] Group 4: Risks and Future Outlook - There are ongoing pressures in the real estate sector, and consumer recovery momentum may not meet expectations[30] - The sustainability of price increases in bulk commodities and their impact on downstream industries will be closely monitored[28]

Investment Rating - The report maintains a "Buy" rating for Jiangnan Buyi, indicating a positive outlook for the company's stock performance [11]. Core Insights - Jiangnan Buyi achieved a revenue of 5.55 billion RMB in FY2025, reflecting a year-on-year growth of 5%. The net profit for the same period was 0.89 billion RMB, also up by 5% [11]. - The company aims to achieve a sales target of 10 billion RMB by FY2026, focusing on a "fan economy" strategy to drive growth [3][11]. - The report highlights a strong performance in emerging brands, with a revenue increase of 107% in FY25, while mature and growth brands saw modest increases of 2% and a slight decline of 0.5%, respectively [11]. Financial Summary - **Revenue Forecast**: - FY2024: 5.24 billion RMB - FY2025: 5.55 billion RMB - FY2026E: 6.00 billion RMB - FY2027E: 6.45 billion RMB - FY2028E: 6.93 billion RMB - Growth rates: 17.3% (2024), 5.9% (2025), 8.2% (2026), 7.5% (2027), 7.4% (2028) [5]. - **Net Profit Forecast**: - FY2024: 0.85 billion RMB - FY2025: 0.89 billion RMB - FY2026E: 0.90 billion RMB - FY2027E: 0.97 billion RMB - FY2028E: 1.05 billion RMB - Growth rates: 36.7% (2024), 5.1% (2025), 0.9% (2026), 8.0% (2027), 8.3% (2028) [5]. - **Valuation Metrics**: - PE ratios for FY2025, FY2026, FY2027 are 8.38, 9.15, and 11.72 respectively, indicating a relatively low valuation compared to peers [5][12]. Market Data - The stock price range over the past 52 weeks is between 13.50 and 22.12 HKD, with a current market capitalization of 10.08 billion HKD [8]. - The report notes that over 80% of retail sales are contributed by active members, with 560,000 active members recorded [11]. Strategic Focus - Jiangnan Buyi is committed to maintaining stable discounts and enhancing customer loyalty through its fan economy strategy, which is expected to support its ambitious sales targets [3][11]. - The company plans to continue high dividend payouts, with a total dividend of 1.38 HKD per share for FY25, corresponding to a dividend yield of over 6% [11].

Group 1: Economic Growth Drivers - The article emphasizes the need for local economies to identify new growth drivers during the "14th Five-Year Plan" period, focusing on supply-side, demand-side, and enterprise development [1][5][6] - The contribution of the industrial sector to GDP is declining, with industrial value added expected to account for 30% of GDP by 2024, down 9.3 percentage points from the end of the "11th Five-Year Plan" [1][2] - The service sector has become the core driver of economic growth, projected to account for 56.7% of GDP by the end of 2024, increasing by 11.6 percentage points since the end of the "11th Five-Year Plan" [1][2] Group 2: Role of Service Industry - The service industry is crucial for economic resilience and sustainability, requiring local governments to enhance service systems and urban service capabilities [2][3] - Regions with rapid service industry revenue growth, such as Hainan, Fujian, and Shandong, should prioritize service sector development as a key component of modern industrial systems [2][4] - The article highlights the need for western regions to balance industrial growth with the development of local service industries, particularly in production-related and lifestyle services [2][4] Group 3: Consumer Demand and Trends - Consumer demand is shifting towards service consumption, with service retail expected to grow by 6.2% in 2024, outpacing goods retail growth by 3 percentage points [3][4] - The article notes a transformation in consumption patterns, driven by demographic changes and technological integration, leading to new consumption trends such as the "single economy" and "silver economy" [4][5] - Local governments are encouraged to innovate service offerings and consumption scenarios to stimulate economic growth [4][5] Group 4: Enterprise Development and Innovation - The vitality and development level of market entities are critical for local economic quality and efficiency, necessitating a focus on innovation across various sectors [5][6] - The article stresses the importance of both original technology and model innovation, with traditional industries also needing to embrace technological upgrades for efficiency gains [5][6] - Regional disparities in R&D investment are highlighted, with eastern regions leading in R&D spending, while western regions show strong growth in external R&D funding [6]

Core Viewpoint - Daiwa's report indicates that Shenzhou International (02313) achieved a 15.3% year-on-year revenue growth in the first half, slightly exceeding market expectations, but the core net profit growth of 6.2% fell short of expectations due to weaker-than-expected gross margin performance [1] Financial Performance - Revenue increased by 15.3% year-on-year, surpassing market expectations [1] - Core net profit growth was 6.2% year-on-year, which was slightly below expectations [1] - The group's stock price declined following the earnings announcement, which Daiwa considers unreasonable [1] Investment Rating - Daiwa maintains a "Buy" rating for the company, citing its ability to capture order share from core customers and demonstrating robust market competitiveness [1] - The target price has been adjusted from HKD 90 to HKD 80 [1]

Core Points - The article discusses the escalating trade tensions between the United States and India, particularly following the U.S. imposition of a 50% tariff on Indian goods, which has led to significant diplomatic silence from Indian Prime Minister Modi [1][2][3] - The tariffs are a result of two executive orders from the Trump administration aimed at pressuring India to change its energy policies regarding Russian oil imports [3][14] - The impact of these tariffs is expected to severely affect India's export industries, particularly labor-intensive sectors [11][12] Tariff Impact on Indian Industries - The textile and apparel industry, a key sector for India, is expected to face significant profit erosion due to the 50% tariff, as it heavily relies on the U.S. market [4] - The jewelry sector has been warned of potential supply chain disruptions and a substantial reduction in overall export volume due to high tariffs [5] - The shrimp farming industry, which is India's largest seafood export category, will be severely impacted by the tariffs [6] - The carpet and furniture manufacturing sectors are also expected to suffer from a sharp decline in demand due to increased prices [7][8] Exemptions and Future Risks - The pharmaceutical industry currently enjoys tariff exemptions, but there are threats of a 200% tariff if trade disputes escalate [9] - The electronics and IT hardware sectors are temporarily shielded from tariffs due to strong demand in the U.S. market [10] - The oil products sector maintains its exemption but must remain vigilant regarding international oil price fluctuations and potential policy changes [10] Export Projections - A report from the Global Trade Research Initiative predicts that India's exports to the U.S. will plummet from $87 billion in FY2025 to $49.6 billion in FY2026, with approximately 66% of exports facing tariff impacts [11] India's Response Strategies - The Indian government is implementing measures to mitigate tariff impacts, including suspending import duties on certain raw materials and accelerating trade negotiations with other countries [12] - Diplomatically, India is maintaining a firm stance, prioritizing the protection of its farmers and small businesses while continuing to purchase Russian oil despite U.S. pressure [12][13] - Indian companies are also taking proactive steps, such as state-owned oil companies pausing Russian oil purchases until further government guidance is provided [13] Broader Implications of U.S. Tariffs - The U.S. aims to weaken Russia's oil revenue through these tariffs, which could have broader implications for global trade dynamics [14] - Concerns are rising that the U.S. approach to weaponizing tariffs may disrupt existing trade rules and accelerate the fragmentation of the global trade system [15]

Group 1 - The United States has officially imposed a 50% tariff on products imported from India, significantly impacting various sectors, particularly the apparel industry [1][3] - Many textile manufacturers in India have been forced to temporarily halt production due to the tariff measures, leading traders to seek new export markets to mitigate losses [3][5] - The Indian government estimates that the U.S. tariffs will affect exports worth $48.2 billion, with the U.S.-India trade volume projected at $128.8 billion for 2024, and India maintaining a trade surplus of $45.8 billion with the U.S. [7] Group 2 - In response to the tariffs, the Indian government has pledged to provide financial assistance to affected businesses, including increased subsidies for bank loans and support for industry diversification [7] - India is actively seeking to establish free trade agreements with major economies to promote exports and diversify its export markets [9]

Group 1 - The Federal Reserve Chairman Jerome Powell indicated an openness to interest rate cuts, suggesting potential adjustments in policy due to employment growth risks [1][2] - Following Powell's remarks, traders increased bets on a September rate cut, with a 91.1% probability of a 25 basis point cut being priced in [1] - The U.S. stock market surged, with major indices rising significantly, and the offshore RMB appreciated against the USD, indicating positive market reactions to the potential rate cut [1][3] Group 2 - Powell's comments suggest a mixed impact for China, presenting both opportunities and challenges, particularly in terms of interest rate differentials and currency pressures [2] - A potential rate cut by the Fed could lead to a narrowing of the China-U.S. interest rate gap, providing the Chinese central bank with more room to implement monetary easing measures [2][5] - The weakening of the USD and strengthening of the RMB could lower import costs for commodities, aiding domestic inflation control and inventory replenishment [3][4] Group 3 - The decline in U.S. Treasury yields and the narrowing of the China-U.S. interest rate differential may attract foreign capital back to A-shares and Hong Kong stocks [4] - The rebound in real estate dollar bond prices could provide distressed property companies with a window to stabilize their financial situations [4] - However, foreign capital is characterized as "profit-seeking migratory birds," indicating that it may withdraw quickly if domestic fundamentals do not improve [4] Group 4 - The Fed's potential rate cut could alleviate the interest burden on local government debt and expand financing leverage for special bonds [5] - There is a risk that excessive reliance on monetary easing could delay necessary structural reforms and lead to a "long-term dependency syndrome" [5] - The rise in international gold prices and increased profitability for domestic gold mining and smelting companies may not translate to benefits for downstream manufacturing sectors [5]

Group 1 - The opening of the fishing season in the South China Sea marks a busy period for fishing ports, with numerous fishing boats setting out to sea [33] - In Jiangmen, nearly 1,800 fishing boats departed from various ports, with the first catch hitting the market the same evening [34] - The seafood promotion event in Zhanjiang aims to enhance brand building and market presence for local seafood products through media collaboration [16][18] Group 2 - The "Xinjiang products southbound, Guangdong products northbound" event showcases the strength of Guangdong's textile and apparel industry in Xinjiang [9][10] - The event features representatives from key garment regions in Guangdong promoting their products, highlighting the synergy between Guangdong's manufacturing and Xinjiang's cotton [11] - The event is part of broader efforts to strengthen economic ties and promote regional products [9][10] Group 3 - The "Jiyue Agricultural Shared Economy and Quality Specialty Agricultural Products Promotion Conference" was held during the Changchun International Agricultural and Food Expo, focusing on enhancing agricultural cooperation between Guangdong and Jilin [39][41] - The conference emphasizes the importance of media collaboration in building market systems for agricultural products [42] - The event aims to explore new pathways for cooperation and shared development in agriculture [40][41]