Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1]. Core Insights - The textile and apparel industry has shown a mixed performance in exports, with China's textile and apparel exports for January to September 2025 amounting to $106.48 billion and $115.21 billion respectively, reflecting a year-on-year growth of 2.1% and a decline of 2.5% [3][19]. - Vietnam's textile and apparel exports for the same period have shown a cumulative year-on-year growth of 8.77% [4][19]. - The report highlights strong retail performance for brands like 361 Degrees and Tebu International, with 361 Degrees achieving healthy growth in retail sales [2][12]. Summary by Sections Weekly Observation - Major Taiwanese textile manufacturers reported September 2025 revenue data, with notable performances including: - Yuanyuan Group: September revenue down 3.8%, but a 2.3% increase year-to-date [20]. - Fengtai Enterprises: September revenue down 0.87%, with a 4.29% decline year-to-date [5]. - Laiyi Industry: September revenue up 0.65%, with an 8.16% increase year-to-date [6]. - Juyang Industrial: September revenue down 28.22%, with a 0.99% decline year-to-date [7]. - Ruhong: September revenue up 1.59%, with a 5.39% increase year-to-date [8]. Market Performance - The SW textile and apparel sector saw a decline of 0.31% in the week, while the SW light industry sector fell by 2.22% [11][23]. - The SW textile manufacturing sub-sector dropped by 2.73%, while the SW apparel and home textile sector rose by 0.41% [11][23]. Industry Data Tracking - China's textile and apparel exports for January to September 2025 were $106.48 billion and $115.21 billion, with year-on-year changes of 2.1% and -2.5% respectively [19][48]. - Vietnam's textile and apparel exports showed a cumulative year-on-year growth of 8.77% for the same period [4][19]. Industry News - MUJI's parent company reported a global revenue increase of 18.6% for the last fiscal year, with significant growth in the Chinese market [63][64]. - LVMH reported a 4% decline in total revenue for the first nine months of 2025, but noted a return to growth in the Chinese market [68][69]. - Lao Feng Xiang announced a $24 million investment to acquire a 20% stake in Maybach Luxury Asia Pacific, aiming to enhance its high-end product offerings [70][71].

Group 1 - The core viewpoint is that the current structural fundamental clue in A-shares is the outbound expansion of Chinese enterprises, influenced by the ongoing US-China tensions, which may affect market pricing for outbound investments [2] - The new focus is on China's long-term strategy to ensure resource security, industrial chain safety, and leading technology security, indicating a shift in investment themes post-dividend rotation [2] - The adjustment in the leading industries, such as optical modules, PCB, and innovative pharmaceuticals, is expected to continue, with potential for new highs as the third-quarter reports approach [3][4] Group 2 - The market is currently in a bull market consolidation phase characterized by high-low fund rotation and index stagnation, with the expectation that the bull market logic remains intact [6] - The market's recent adjustments are attributed to high valuations and uncertainties in US-China relations, but historical patterns suggest that such corrections are common in bull markets [7] - The upcoming policy expectations and the focus on the "15th Five-Year Plan" are likely to provide new investment opportunities, particularly in sectors with strong performance certainty [8][10] Group 3 - The recent market adjustments are seen as the beginning of a structural shift, with a focus on domestic industries that are experiencing a recovery in demand [9] - The investment strategy should prioritize sectors with strong growth potential, such as new consumption, military industry, and advanced manufacturing, while also considering defensive sectors [11] - The fourth quarter is anticipated to see continued upward movement in indices, driven by policy catalysts and stable earnings expectations [14]

Investment Rating - The report maintains a "Buy" rating for Chow Tai Fook [6] Core Views - Chow Tai Fook's FY2026Q2 performance shows a positive trend with a 4.1% year-on-year growth in group RSV, aligning with expectations [1] - The company is expected to achieve a revenue growth of approximately 3% for FY2026, with a projected net profit increase of 32% to HKD 7.8 billion [3] Summary by Sections Domestic Performance - In FY2026Q2, Chow Tai Fook's same-store sales in mainland China turned positive, with a 7.6% year-on-year increase in direct same-store sales [1] - The average selling price of gold jewelry increased by 23% year-on-year, driven by a significant rise in gold prices, which were up 46% compared to the same period in 2024 [1][2] - Excluding price factors, same-store sales volume declined by 8.6%, but the decline was less severe than in Q1, attributed to new product launches and the optimization of existing product lines [2] E-commerce Growth - Chow Tai Fook's e-commerce sales in mainland China grew by 28.1% year-on-year, accounting for 6.7% of total sales and 15.5% of total volume [2] Hong Kong and Macau Performance - In FY2026Q2, RSV in Hong Kong and Macau increased by 11.4%, with same-store sales growth of 6.2% in Hong Kong and 17.3% in Macau [3] Financial Projections - The report forecasts Chow Tai Fook's net profit for FY2026 to reach HKD 7.8 billion, with a PE ratio of 21 times [3] - Projected net profits for FY2026-2028 are HKD 78.06 billion, HKD 88.30 billion, and HKD 98.78 billion respectively [3]

Core Insights - The jewelry sector experienced a decline of 0.65% on October 17, with Chao Hong Ji leading the drop [1] - The Shanghai Composite Index closed at 3839.76, down 1.95%, while the Shenzhen Component Index closed at 12688.94, down 3.04% [1] Stock Performance - ST XinHua Jin saw a significant increase of 5.00%, closing at 5.04 with a trading volume of 21,500 [1] - Xinghua Jewelry rose by 4.20%, closing at 14.39 with a trading volume of 476,000, amounting to a transaction value of 703 million [1] - Other notable performers included Lai Xi Tong Ling (+2.02%), Cai Zi Co., Ltd. (+1.40%), and China Gold (+0.35%) [1] - Conversely, Chao Hong Ji experienced a decline of 5.13%, closing at 14.43 with a trading volume of 306,100, resulting in a transaction value of 460 million [2] - Man Ka Long and Fei Ya Da also saw declines of 3.09% and 2.35%, respectively [2] Capital Flow - The jewelry sector had a net inflow of 4.71 million from institutional investors, while retail investors contributed a net inflow of 23.84 million [2] - However, there was a net outflow of 28.55 million from speculative funds [2]

Core Insights - The Shanghai Municipal Market Supervision Administration conducted a quality inspection on 60 batches of precious metal jewelry from 51 brands, revealing a non-compliance rate of 36.7% with 22 batches failing the tests [1] Group 1: Quality Inspection Results - A total of 22 batches were found to be non-compliant, including 5 batches from live-streaming sales [1] - The inspection covered various parameters such as precious metal content, purity, quality, and labeling rules [1] Group 2: Specific Non-Compliance Cases - The "Fanhua Kou" brand silver earrings were found to have a silver content of 987‰ instead of the claimed 999‰, and the actual weight was 0.8g, which did not meet the stated weight [2] - The "NAME.S" brand silver bracelet was tested as 925 silver instead of the claimed higher purity [2] Group 3: Quality Issues - Six batches of jewelry were identified with quality issues, including the "Xieshou" brand gold pendant, which weighed 0.64g instead of the claimed 0.75g, resulting in a weight deviation [3] - Other brands like "AJIDOU" and "FLOWER GIRL" also faced quality complaints from consumers regarding craftsmanship and durability [3] Group 4: Labeling and Marking Issues - Eighteen batches had improper markings, lacking necessary manufacturer codes and material purity information, which could mislead consumers [4] - The "RiotLILY" brand silver jewelry lacked the required manufacturer code, making it difficult for consumers to trace product origins [4] Group 5: Naming Rule Violations - Ten batches were found to violate naming rules, such as the "RASTACLAT" brand couple's silver ring, which included misleading terms in its name [5] - The Shanghai Municipal Market Supervision Administration provided tips for consumers to verify product authenticity and ensure proper labeling [6]

Core Insights - The jewelry sector experienced a slight increase of 0.03% on October 16, with ST Xinhua Jin leading the gains [1] - The Shanghai Composite Index closed at 3916.23, up 0.1%, while the Shenzhen Component Index closed at 13086.41, down 0.25% [1] Stock Performance - ST Xinhua Jin (600735) closed at 4.80, with a rise of 5.03% and a trading volume of 25,000 shares, totaling a transaction value of 11.20 million yuan [1] - Chao Hong Ji (002345) closed at 15.21, up 3.26%, with a trading volume of 371,300 shares and a transaction value of 568 million yuan [1] - Xinghua Jewelry (002731) closed at 13.81, increasing by 1.92%, with a trading volume of 253,800 shares and a transaction value of 352 million yuan [1] - Other notable performances include Zhou Dazheng (002867) at 13.91 (+0.80%), and Lao Feng Xiang (600612) at 50.15 (+0.14%) [1] Capital Flow - The jewelry sector saw a net inflow of 22.75 million yuan from main funds, while retail funds experienced a net inflow of 4.99 million yuan [2] - However, speculative funds recorded a net outflow of 27.74 million yuan [2]

Core Insights - The Yiwu Global Digital Trade Center officially opened on October 14, marking a significant upgrade in Yiwu's market, transitioning from traditional face-to-face bargaining to intelligent online trading [1] Group 1: Market Dynamics - The opening of the Global Digital Trade Center has led to a surge in orders, with businesses like Coolway and Silver Jewelry reporting substantial sales, including a single order worth over 480,000 yuan from Malaysian clients [2][3] - The center spans 1.25 million square meters and includes over 3,700 merchants across eight industries, enhancing local business dynamics and attracting foreign customers [3] Group 2: Technological Advancements - AI technology is significantly enhancing operational efficiency, with businesses reporting up to a tenfold increase in order volume due to AI-driven design and production processes [4] - The center is developing various AI applications, including AI design and video translation, which have led to a 72% increase in active user engagement on the Chinagoods platform [4] Group 3: Market Perception Shift - There is a notable shift in perception among international buyers, with a focus on quality over low prices, as evidenced by feedback from long-term purchasers who now seek high-quality products [5][6] - The demographic of merchants is evolving, with 52% being second-generation or new-generation entrepreneurs, indicating a trend towards innovation and brand development in Yiwu's market [6]

Market Overview - The jewelry sector increased by 0.85% on October 15, with ST Xinhua Jin leading the gains [1] - The Shanghai Composite Index closed at 3912.21, up 1.22%, while the Shenzhen Component Index closed at 13118.75, up 1.73% [1] Individual Stock Performance - ST Xinhua Jin (600735) closed at 4.57, with a rise of 5.06% and a trading volume of 318,200 shares, amounting to a transaction value of 140 million yuan [1] - Other notable performers include: - Cuihua Jewelry (002731) at 13.55, up 2.65% [1] - Caizhi Co. (6655509) at 15.20, up 2.63% [1] - Chaohongmu (002345) at 14.73, up 2.58% [1] - Mankalon (300945) at 21.79, up 2.35% [1] Capital Flow Analysis - The jewelry sector saw a net inflow of 2.9829 million yuan from institutional investors, while retail investors contributed a net inflow of 28.087 million yuan [2] - However, there was a net outflow of 31.0699 million yuan from speculative funds [2] Detailed Capital Flow for Selected Stocks - ST Xinhua Jin had a net inflow of 15.7082 million yuan from institutional investors, but a net outflow of 4.5480 million yuan from speculative funds [3] - Chaohongji (002345) experienced a net inflow of 9.0915 million yuan from institutional investors, with a net inflow of 3.8748 million yuan from speculative funds [3] - Other stocks like Gold One Culture (002721) and Cuihua Jewelry (002731) also showed varying levels of net inflows and outflows from different investor types [3]

Market Overview - The jewelry sector increased by 1.18% on October 14, with Mankalon leading the gains [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Individual Stock Performance - Mankalon (300945) closed at 21.29, up 3.96% with a trading volume of 387,200 shares and a turnover of 829 million yuan [1] - Xinhua Jewelry (002731) closed at 13.20, up 2.56% with a trading volume of 237,900 shares and a turnover of 318 million yuan [1] - Other notable performers include: - Caizhi Co. (665569) at 14.81, up 1.93% [1] - Laofengxiang (600612) at 50.38, up 1.78% [1] - Xinxitongling (603900) at 10.48, up 1.75% [1] Capital Flow Analysis - The jewelry sector saw a net inflow of 138 million yuan from institutional investors, while retail investors experienced a net outflow of 47.98 million yuan [2] - Major stocks with significant capital inflows include: - ST Xinhua Jin (600735) with a net inflow of 63.15 million yuan [3] - Chaohongji (002345) with a net inflow of 25.95 million yuan [3] - China Gold (600916) with a net inflow of 16.89 million yuan [3]

Market Overview - The jewelry sector experienced a decline of 0.24% on October 13, with ST Xinhua Jin leading the drop [1] - The Shanghai Composite Index closed at 3889.5, down 0.19%, while the Shenzhen Component Index closed at 13231.47, down 0.93% [1] Individual Stock Performance - Notable gainers included: - Shenhua A (000017) with a closing price of 7.35, up 3.38% and a trading volume of 486,700 shares, totaling 352 million yuan [1] - Mankalon (300945) closed at 20.48, up 1.69% with a trading volume of 180,000 shares, totaling 363 million yuan [1] - Jinyi Culture (002721) closed at 3.54, up 1.14% with a trading volume of 640,200 shares, totaling 222 million yuan [1] - Decliners included: - ST Xinhua Jin (600735) closed at 4.56, down 5.00% with a trading volume of 250,600 shares, totaling 1.1427 million yuan [2] - Laofengxiang (600612) closed at 49.50, down 1.55% with a trading volume of 27,300 shares, totaling 135 million yuan [2] - Diahua Co. (301177) closed at 32.78, down 1.12% with a trading volume of 18,600 shares, totaling 60.625 million yuan [2] Capital Flow Analysis - The jewelry sector saw a net outflow of 31.8358 million yuan from institutional investors, while retail investors had a net inflow of 48.8053 million yuan [2][3] - Key stocks in terms of capital flow included: - Shenhua A (000017) had a net inflow of 16.5116 million yuan from institutional investors, while retail investors had a net outflow of 747,170 yuan [3] - Zhou Dazheng (002867) experienced a net inflow of 5.5548 million yuan from institutional investors, with a net outflow of 1.19869 million yuan from retail investors [3] - Laofengxiang (600612) had a net inflow of 4.2011 million yuan from institutional investors, while retail investors had a net outflow of 763,180 yuan [3]