Guosen: Maintain a "outperform" rating for the textile and apparel industry. Focus on brand new highlights and undervalued opportunities in Hong Kong stock allocation.

Guosen released a research report stating that attention should be paid to new highlights of textile industry brands and the undervalued opportunity of Hong Kong stocks allocation. 1) Brand apparel: Focus on companies with new highlights in 2025; Hong Kong stocks with high cost performance ratio , good mid-term growth prospects for leading sports companies, and pay attention to performance disclosure and guidance catalysis. 2) Textile manufacturing: In January, Vietnamese textile and footwear exports maintained positive growth on a high base, garment OEM factory revenue performance is impressive, current order visibility is high, and expectations for 2025 are optimistic. The textile manufacturing industry maintains a high level of prosperity. It is recommended to focus on companies with the ability to increase market share and strong sustainability in medium to long-term growth. Guosen's main views are as follows: Brand apparel views In January 2025, brand apparel sales were relatively good compared to the previous year, but sales during the Spring Festival period were relatively stable, without a clear trend improvement. In January, outdoor, women's wear, home textile, and sports industries, sales on the three platforms of Tmall+JD+Douyin increased by +56%/+45%/+14%/+11% year-on-year, with outdoor and women's wear performing well. Among the highlighted brands, Ke Long/Biem.L.Fdlkk Garment/Shenzhen Ellassay Fashion/JNBY had growth rates exceeding 50%; Adidas/Descente/Salomon/Hoggis/Senma/Balabala/Ningbo Peacebird Fashion/Quanmian Shidai had growth rates exceeding 30%. Textile manufacturing views At the macro level, in January, Vietnamese textile and footwear exports increased by +3.4% and 2.7% respectively on a high base; in February, Indonesia, India, Vietnam, and China's PMI all increased compared to the previous month. At the micro level, among Taiwanese OEMs, in January, Yuyuan, Zhiqiang, Yuqi, Ruhong, Juyang, and Guangyue achieved year-on-year growth, with Zhiqiang, Ruhong, and Juyang growing by over 20%. Juyang's January revenue reached a new high for the same period, mainly due to active shipments by U.S. customers before the tariffs, with management indicating that orders for 2025 are expected to increase, although the specific extent depends on the clarification of Trump's policies after taking office; Ruhong's first quarter revenue performance is expected to maintain the strong performance of the fourth quarter of last year, with clear order visibility in the first half of the year and optimistic outlook for 2025; Yuqi achieved record revenue for the same period in January despite a reduction in actual working days due to the traditional holiday; POU SHENG INT'L saw a 24.2% year-on-year increase in monthly sales in January due to the lunar New Year holiday. Special topic summary Shandong Nanshan Fashion Sci-Tech has recently benefited from the significant increase in shares of Siasun Robot&Automation due to the rapid development of humanoid Siasun Robot&Automation in the future, the demand for tendon materials and UHMWPE fibers will increase rapidly, and Shandong Nanshan Fashion Sci-Tech will seize the initiative with its technological advantages and capacity layout. Risk warning: Weak macroeconomic conditions; International political and economic risks; Significant fluctuations in exchange rates and raw material prices.