Core Insights - The report emphasizes the potential for investment opportunities in the textile and apparel sector, particularly focusing on new consumption trends and global manufacturing recovery [3][16][18]. Industry Performance - The textile and apparel sector outperformed the market during the week of November 17 to November 21, with the SW textile and apparel index declining by 4.8%, which was 0.3 percentage points better than the SW All A index [4][10]. - Recent industry data shows that from January to October, the total retail sales of clothing, shoes, and textiles reached 1,205.3 billion yuan, reflecting a year-on-year growth of 3.5% [3][34]. Textile Sector Insights - The Australian wool price index stabilized at 983 cents per kilogram as of November 20, 2025, with a year-on-year increase of 32.3% and a monthly increase of 5.4%, indicating a bullish trend in wool prices [10][50]. - The report suggests that the current price increase in Australian wool is in its early stages, driven by supply constraints and new demand from sports wool yarns, presenting investment opportunities [10][18]. Apparel Sector Insights - Amer Sports reported a 30% increase in revenue to $1.76 billion for Q3 2025, with a net profit increase of 161% to $190 million, exceeding previous guidance and indicating strong growth in the outdoor segment [13][15]. - The report recommends focusing on outdoor sports brands such as Bosideng, which is expected to benefit from seasonal sales and a favorable market environment [15][18]. Investment Strategy for 2026 - The investment strategy for the textile and apparel industry in 2026 focuses on consolidating positions and exploring new consumption trends, particularly targeting younger consumer demographics [16][17]. - The report highlights the importance of the global tariff landscape stabilizing, which is expected to enhance the competitiveness of core manufacturing [18]. Key Recommendations - Recommended companies in the outdoor sports segment include Anta, Bosideng, and 361 Degrees, with a focus on brands that are well-positioned to capitalize on the upcoming winter season and the Milan Winter Olympics [17][18]. - The report also identifies potential in discount retail and personal care sectors, suggesting companies like Hailan Home and Nobon Co., which are expected to benefit from changing consumer behaviors [17][18].

Investment Rating - The report maintains a "Buy" rating for the textile and apparel industry, particularly highlighting investment opportunities in the outdoor sports sector and the wool price increase cycle [3][12][14]. Core Insights - The textile and apparel sector outperformed the market, with the SW textile and apparel index rising by 4.4% from November 10 to November 14, 2025, surpassing the SW All A index by 4.9 percentage points [3][4]. - The report emphasizes the stabilization and increase in Australian wool prices, suggesting that the current price increase cycle may have significant investment potential, comparable to peaks seen in 2011 and 2018 [9][41]. - The opening of the 15th National Games has boosted interest in outdoor sports, creating investment opportunities in this segment, particularly for brands like Sanfu Outdoor, which saw a 26% increase in stock price [12][14]. Summary by Sections Industry Performance - The textile and apparel sector showed strong performance, with the SW textile and apparel index increasing by 4.4%, while the SW apparel and home textiles index rose by 4.0%, and the SW textile manufacturing index increased by 6.2% [3][4]. Recent Industry Data - Retail sales for clothing, shoes, and textiles reached 1,205.3 billion yuan from January to October, marking a 3.5% year-on-year growth [3][29]. - In October, textile and apparel exports amounted to $22.26 billion, down 12.6% year-on-year, with specific declines in textile yarns and fabrics by 9.0% and clothing by 16.0% [3][34]. Wool Price Insights - As of November 13, the Australian wool price index was reported at 951 cents per kilogram, reflecting a year-on-year increase of 27.5% and a month-on-month increase of 1.9% [9][41]. Apparel Sector Highlights - The report highlights the potential for growth in the outdoor sports segment due to the National Games and the upcoming Winter Olympics, suggesting a focus on brands like Bosideng and opportunities in the women's apparel sector [12][14]. - The report also notes that the fourth quarter remains a critical period for the apparel sector, with Bosideng being a key recommendation due to favorable seasonal conditions [14]. Company Performance Review - The report reviews the performance of Yuanyuan Group, noting a revenue of $6.02 billion for the first three quarters of 2025, with a focus on the recovery of the sports manufacturing chain and an upward revision of profit forecasts for 2025-2027 [15][16].

Investment Rating - The report maintains a "Buy" rating for companies like Yanjiang Co., New Australia Co., and Shenzhou International, highlighting their advantages in global capacity layout and supply chain [4][15]. Core Views - The textile and apparel sector has shown stronger performance than the market, with the SW textile and apparel index increasing by 1.6% from October 9 to October 10, outperforming the SW All A index by 2.0 percentage points [4][5]. - The report emphasizes the significance of companies with established global production capabilities, which can mitigate tariff impacts and capitalize on favorable market conditions [10][11]. - The recent surge in Australian wool prices is expected to enhance the growth potential of New Australia Co., which is positioned to benefit from this trend [13][14]. Summary by Sections Industry Performance - The textile and apparel sector outperformed the market, with the SW textile manufacturing index rising by 3.0%, exceeding the SW All A index by 3.5 percentage points [4][5]. - Retail sales in the apparel and textile categories reached 940 billion yuan from January to August, reflecting a year-on-year growth of 2.9% [26]. Trade and Tariff Impacts - The U.S. announced a 100% additional tariff on Chinese imports starting November 1, 2025, increasing uncertainty in the trade environment [10]. - Companies with global production layouts are expected to gain a competitive edge by avoiding tariff costs and seizing market share in more favorable overseas markets [10][11]. Company-Specific Insights - Yanjiang Co. has established overseas production in Egypt, the U.S., and India, allowing it to effectively respond to global trade changes [11]. - New Australia Co. has successfully launched production capacity in Vietnam, which is expected to meet U.S. demand, benefiting from rising wool prices [13][14]. - Nike's FY26Q1 performance showed a revenue of $11.7 billion, a 1% year-on-year increase, indicating a gradual recovery despite challenges in the Greater China region [12][16]. Market Trends - The report notes that the domestic demand is recovering, with innovative retail formats emerging in the sportswear sector, which is expected to drive growth [12]. - The Australian wool auction prices have reached record highs, with a significant increase of 41.8% year-on-year, indicating a strong upward trend in the wool market [13][14].

Investment Rating - The report maintains a "Buy" rating for companies like Yanjiang Co., New Australia Co., and Shenzhou International, highlighting their advantages in global capacity layout and supply chain [2][10][16]. Core Views - The textile and apparel sector has shown strong performance against the market, with the SW textile and apparel index increasing by 1.6% from October 9 to October 10, outperforming the SW All A index by 2.0 percentage points [2][3]. - The recent U.S. announcement of a 100% additional tariff on Chinese imports starting November 1, 2025, emphasizes the value of companies with established global production capabilities, allowing them to mitigate tariff costs and capture market share in favorable overseas markets [9][10]. - The report identifies a significant opportunity in the Australian wool market, with prices reaching record highs, benefiting companies like New Australia Co. [13][14]. Industry Data Summary - Retail sales in the apparel and textile category totaled 940 billion yuan from January to August, reflecting a year-on-year growth of 2.9% [27]. - In August, China's textile and apparel exports amounted to $26.54 billion, a year-on-year decline of 5.0%, with apparel exports specifically down by 10.1% [34]. - Cotton prices have shown slight fluctuations, with the national cotton price B index at 14,775 yuan per ton, down 0.3% this week [37]. - The Chinese sportswear market is projected to reach 408.9 billion yuan in 2024, growing by 6.0% year-on-year, with Anta's market share increasing [40].

Group 1: Company Overview - The report highlights that New Australia Co. (新澳股份) is a direct beneficiary of the rising Australian wool prices, which have recently reached record highs, indicating a strong growth potential for the company [2][10][12] - The Australian wool auction index has surged by 112 Australian cents per kilogram to 1565 Australian cents per kilogram, marking a 7.7% increase month-on-month and a 41.8% increase year-on-year, representing the fifth-largest weekly increase since data publication began [2][12] - The report anticipates that the company's net profit for the years 2025 to 2027 will be adjusted to 460 million, 550 million, and 610 million yuan respectively, reflecting an increase from previous estimates [3][12] Group 2: Industry Analysis - The report indicates that the wool market is in the early stages of a price increase cycle, potentially comparable to peaks observed in 2011 and 2018, driven by supply constraints and improving demand [2][12] - The Australian wool production is projected to decline by 8.1% year-on-year, with a significant reduction in sheep numbers, which is expected to maintain upward pressure on prices [12] - The report notes that the overall demand for the white liquor industry is expected to decline by 20-30% during the 2025 Mid-Autumn Festival and National Day, with inventory levels increasing by 10-20% [3][13]

Group 1: Key Insights on New Australia Co. (新澳股份) - The Australian wool auction prices have reached record highs, with the Eastern Market Indicator rising by 112 AUD cents/kg to 1565 AUD cents/kg, marking a 7.7% increase month-on-month and a 41.8% increase year-on-year [2][12]. - The current price increase is seen as being in its early stages, with potential to match previous peaks from 2011 and 2018 due to supply constraints and improving demand [2][12]. - New Australia Co. is positioned to benefit directly from the wool cycle, with expectations of simultaneous increases in volume, price, and profit, leading to significant performance elasticity [2][12]. Group 2: Financial Projections for New Australia Co. - The company is expected to see an increase in net profit forecasts for 2025-2027, with projected profits of 460 million, 550 million, and 610 million CNY respectively, up from previous estimates [3]. - The price increase in wool is anticipated to lead to higher product prices, prompting an upward revision of gross margins and average prices for wool products [3]. Group 3: Insights on the White Wine Industry - The white wine industry is expected to see a year-on-year demand decline of 20-30% during the 2025 Mid-Autumn Festival and National Day, with inventory levels increasing by 10-20% [13]. - The performance of banquet consumption is below expectations, and gift demand is also declining, indicating a challenging market environment [13]. - The industry is anticipated to face pressure on financial statements, with some companies beginning to show signs of stress in Q2 2025, which may continue into Q1 2026 [13][14]. Group 4: Recommendations for White Wine Stocks - Investors are advised to remain patient and wait for opportunities, focusing on high-dividend stocks as a long-term investment strategy [13]. - Key recommended stocks include Guizhou Moutai, Shanxi Fenjiu, and Luzhou Laojiao, with attention also on Wuliangye, Jianshe Yuan, and Yingjia Gongjiu [13].