Northeast: The sleep economy is driving new growth, and core players in the textile and clothing industry have wide development opportunities.

Northeast released a research report stating that under the new development background driven by factors such as daily replacement and functional pursuit in the home textile industry, leading home textile brands are actively adapting to the trend. They are creating popular products such as sleeping pillows, optimizing e-commerce sales and marketing strategies, and significantly improving revenue performance. Meanwhile, Luolai Lifestyle Technology (002293.SZ), Shanghai Shuixing Home Textile (603365.SH), and Shenzhen Fuanna Bedding and Furnishing (002327.SZ) are all long-term high dividend companies with attractive performance elasticity and high stock dividends. The main points of Northeast are as follows: Home Textile Industry: Large scale, stable growth, growth driven by new demand By 2024, the market size of China's bed textile market will reach 156 billion yuan, with a CAGR of 2.9% from 2020 to 2024, maintaining steady growth. Traditional home textile products are mainly tied to real estate, with demand mainly coming from moving, weddings, and replacements. However, as residents pursue a higher quality of life, new demands such as seasonal replacement, functional needs, and design collaborations have become new growth drivers. The industry expects the home textile industry to continue to grow steadily. Highly fragmented competition landscape in the domestic home textile industry The concentration of the domestic home textile industry has long been at a low level, with brand CR5/CR10 increasing slightly from 3%/4.2% in 2015 to 3.7%/5.3% in 2024. There is still room for significant improvement in the concentration of China's home textile industry, and the transformation of home textile functionality in recent years is expected to accelerate sales towards leading brands. New player Yado Planet is rising rapidly in response to trends In 2021, Yado launched the sleep scene brand "TOURPLANET Yado Planet," which currently includes products such as deep sleep pillows and temperature-controlled blankets. By 2024, Yado Planet's retail GMV will reach 25.9 billion yuan, with a CAGR of 99% from 2020 to 2024. Revenue will increase by 67% to 3.67 billion yuan in 2025. Against the backdrop of the rise of the sleep economy, Yado Planet focuses on sleep pillows, with its deep sleep Pro series selling over 10 million units by March 12, 2026, achieving a GMV of over 1.8 billion yuan in 2024. Opportunities for growth in the home textile industry are opening up in niche categories such as memory foam pillows. Learning from others: A comparison of the home textile markets in the United States, Japan, and South Korea The growth rates in the home textile industries of China, the United States, Japan, and South Korea are similar, but there is a large difference in per capita consumption. By 2024, the market sizes of bed textiles in the United States/Japan/South Korea were 15.48/1.05/0.46 billion yuan, with CAGR between 2018 and 2024 being 4.3%/3.4%/1.8%, having entered a mature stage with single-digit growth rates. In a situation where traditional industry development drivers are limited, new catalysts continue to emerge in overseas home textile markets. The Japanese "sleep economy" market is thriving, leading the demand for bedding products; by 2024, the CR5 of the home textile industry markets in the United States/Japan/South Korea were 9.2%/15.9%/20.8%, significantly higher than China's market at 3.7%. South Korea's leading home textile companies have fabric technology as their core competitive advantage, promoting functional home textile products. Risk Warning: Consumer recovery falls short of expectations, store expansion falls short of expectations, new product development and sales fall short of expectations, intensified market competition, and lower-than-expected profit forecasts and valuations, etc.