Wanlian Securities: Overall profitability is marginally improving, and the textile manufacturing sector has a higher forecasted profit rate.

Vanguard Securities released a research report stating that looking ahead, with the decrease in inventory levels of downstream leading brands, core customer orders are expected to rebound in 2026. Textile manufacturing leading companies are expected to continue to seize market share with their scale and cost advantages. It is recommended to pay attention to textile manufacturing leading enterprises that have a rebound in order demand, new capacity release, and high dividend yield. In terms of clothing and home textile, benefiting from the recovery of downstream demand, performance of clothing and home textile companies with strong brand power and product strength is expected to continue to improve. In addition, the high gold prices in the short term are suppressing the demand for gold jewelry; in the medium to long term, the improvement in gold jewelry craftsmanship will further promote the penetration rate of gold jewelry in multiple scenarios. It is recommended to pay attention to gold jewelry leading enterprises with strong brand momentum, extensive channel layout, and high dividend yield. The main views of Vanguard Securities are as follows: The profitability of the textile and clothing industry is improving marginally, with a projected profit rate of 60% in 2025 As of February 13, 2026, there were a total of 107 A-share companies in the textile and clothing industry, of which 55 had released performance forecasts, making the industry disclosure rate at 51%, ranking third among the eight major consumer industries. Among all companies that have released performance forecasts, 33 companies are expected to be profitable in the textile and clothing industry in 2025, with a projected profit rate of 60%, ranking third among the eight major consumer industries. Looking at specific types of performance forecasts, the proportion of loss-making listed companies in the textile and clothing industry in 2025 is 40%, a decrease of 19 percentage points year-on-year. Among them, the proportion of companies continuing to make losses has slightly increased from 30% in 2024 to 33%, but the proportion of companies experiencing losses for the first time has significantly decreased from 28% to 7%. In addition, the proportion of companies turning losses into profits has significantly increased from 4% to 20%, and the proportion of companies forecasting increased performance has increased from 15% to 22%. The overall profitability of the industry shows a marginally improving trend. The proportion of loss-making listed companies in each sub-sector has decreased, with a higher projected profit rate in the textile manufacturing sector In terms of disclosure rate: the accessories sector has the highest disclosure rate at 73%, while the disclosure rates for clothing and home textiles/textile manufacturing sectors are 52% and 41% respectively. Looking at the projected profit rate: among all companies that have released performance forecasts, performance varies among sub-sectors, with 10 textile manufacturing companies forecasting profits with a projected profit rate of 77%, the accessories sector with a projected profit rate of 73%, and the clothing and home textiles sector with a projected profit rate of 48%. Looking at the proportion of performance forecast types in each sub-sector: the proportion of loss-making companies has decreased compared to 2024 in all sub-sectors that have released performance forecasts for 2025. In the textile manufacturing sector, the proportion of companies forecasting increased performance has decreased from 45% to 38%, while the proportion of companies continuing to make profits has decreased from 9% to 8%; the proportion of loss-making companies has decreased from 27% to 23%, with 8% of companies experiencing losses for the first time, a decrease of 10 percentage points compared to 2024, but the proportion of companies continuing to make losses has increased from 9% to 15%. In the clothing and home textiles sector, the proportion of companies forecasting increased performance has increased from 3% to 10%, the proportion of companies experiencing losses for the first time has decreased from 33% to 6%, and the proportion of companies continuing to make losses has increased to 45%; in the accessories sector, the proportion of companies forecasting increased performance has increased from 20% to 36%, the proportion of companies turning losses into profits has increased to 9%, and the proportion of companies experiencing losses for the first time/continuing to make losses has decreased to 9%/18%. Risk factors: risks include macroeconomic recovery falling short of expectations, substantial fluctuations in raw material prices, intensified industry competition, exchange rate fluctuations, and risks of statistical bias.