Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Insights - The report indicates that the order growth for footwear and apparel manufacturing has been recovering since Q3 2023 due to the end of inventory destocking by overseas brands. However, it is expected that order growth will begin to slow down on a month-on-month basis in 2025 due to weak terminal retail performance [2][4][32] - The current situation shows a divergence in order growth for sports shoes and apparel, with a slowdown in the weakening trend of the industry. The recovery of Nike is crucial, as its operational recovery could lead to an overall industry rebound and improve order intake for manufacturers [2][4][32] Summary by Sections Manufacturing Orders - In June, the order growth for sports shoes and apparel showed divergence, with specific companies reporting varied performance. For instance, Yu Yuan Group's manufacturing revenue increased by 9.4% year-on-year, while Feng Tai's revenue decreased by 3.1% year-on-year. Overall, the order growth has been maintaining recovery since Q3 2023, but is expected to slow down in 2025 due to weak terminal retail [5][29][32] Market Strategy - The textile manufacturing sector is expected to return to fundamental investment logic as tariffs on Southeast Asia have largely been resolved. The report suggests focusing on quality manufacturers like Crystal International and Huali Group, as well as brands with high earnings elasticity post-tariff adjustments [6][33] - In the A-share market, brands are anticipated to shift to a destocking cycle in Q3, increasing the probability of industry improvement. Recommended stocks include Hailan Home and Robam Life, which are expected to benefit from this transition [6][34] Export Trends - In June 2025, China's apparel exports grew by 0.8% year-on-year, while Vietnam's apparel exports increased by 16.0%. However, footwear exports from China and Vietnam showed a decline of 4.0% and 3.3% year-on-year, respectively, indicating a mixed performance in the export market [26][28]