--- title: "Cathay Securities and Haitong Securities: The textile and apparel sector shows differentiated brand performance over 25 years, exploring new avenues for foreign trade and domestic demand alpha" type: "News" locale: "en" url: "https://longbridge.com/en/news/242115864.md" description: "CITIC Securities released a research report indicating that the performance of brands in the domestic textile and apparel industry is differentiated, with overseas leaders performing excellently. It is optimistic about structural opportunities in the sports sector and home textile segment, while cautioning against tariff and macroeconomic risks. Recommended high-quality leaders include ANTA SPORTS and XTEP INT'L, with SHENZHOU INTL recommended on the manufacturing side. In the domestic market, Luolai and ANTA have performed outstandingly, while high-end outdoor brands in the overseas market have shown good performance. Looking ahead, the sports sector and home textile segment will benefit from market improvements" datetime: "2025-05-28T03:39:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/242115864.md) - [en](https://longbridge.com/en/news/242115864.md) - [zh-HK](https://longbridge.com/zh-HK/news/242115864.md) --- # Cathay Securities and Haitong Securities: The textile and apparel sector shows differentiated brand performance over 25 years, exploring new avenues for foreign trade and domestic demand alpha According to the Zhitong Finance APP, Guotai Junan has released a research report stating that the performance of brands in the domestic textile and apparel industry has diverged over the past 25 years, with overseas leaders performing better. The sports segment and home textile sector present structural opportunities, while caution is needed regarding tariff and macroeconomic risks. At the individual stock level, the report favors high-quality leaders with more defensible business models, growing downstream terminal demand, and potential for future market share increases. Brand recommendations include ANTA SPORTS, XTEP INT'L, HLA, Jiangnan Buyi, Luolai, and Mercury Home Textiles. Manufacturing recommendations include SHENZHOU INTL, Jiuxing Holdings, and Huali Group. ## Guotai Junan's main viewpoints are as follows: **Market Performance Review** 1. Domestic Market: Since the beginning of the year, brand performance has diverged, with fundamentally strong high-dividend leaders seeing valuations recover first. Luolai has led the gains (+25%), and outdoor leader ANTA has performed well (+24%); the outdoor OEM leader Zhejiang Ziran has led with strong alpha (+35%), while some companies' stock prices have adjusted due to tariff expectations. 2) Overseas Market: ① United States: Since 2025, high-end outdoor sports leaders and leisure apparel leaders have performed well, with AS/URBN/GAP/RL rising by 34%/33%/22%/21%. ② Europe: Luxury leaders Richemont and Canada Goose have seen significant increases, with gains of 16%/14%, respectively. **25Q1 Fundamental Review** 1. Brand Side: In 25Q1, under the backdrop of high bases and macroeconomic fluctuations, sales were generally under pressure, with companies achieving revenue growth in their main businesses being considered excellent, such as the counter-cyclical growth of home textile leaders Luolai, Mercury, and men's wear leader Biyin Lefen. 2) Manufacturing Side: Capacity utilization rates generally increased in 2024, with 25Q1 showing differentiation, as individual stocks with overseas capacity ramp-up (Weixing Co.) and core categories expanding (Zhejiang Ziran) performed relatively well. **2025 Industry Trend Outlook** 1. Brand Apparel: At the industry level, the report is optimistic about ① the sports segment, especially high-end sub-segments; ② the home textile sector benefiting from real estate stabilization and subsidy policies driving sales improvement; ③ companies benefiting from e-commerce platform traffic shifting towards leading brands. At the individual stock level, the report favors ① HLA, ANTA SPORTS, and 361 Degrees, which are actively transforming channels and embracing new business formats; ② brands with low inventory levels, such as Luolai, that are gearing up for 2025; ③ high-dividend leaders with stable cash flow. 2) Textile Manufacturing: At the industry level, uncertainty regarding tariffs combined with a weakening North American macroeconomic environment suggests that Beta expectations for 2025 remain weak. At the individual stock level, the report favors high-quality leaders with more defensible business models, growing downstream terminal demand, and potential for future market share increases. **Risk Warning** Risks include economic recession in major economies, a weak retail environment, and channel profitability falling short of expectations ### Related Stocks - [01368.HK](https://longbridge.com/en/quote/01368.HK.md) - [02020.HK](https://longbridge.com/en/quote/02020.HK.md) - [002293.CN](https://longbridge.com/en/quote/002293.CN.md) - [SHZHY.US](https://longbridge.com/en/quote/SHZHY.US.md) - [02313.HK](https://longbridge.com/en/quote/02313.HK.md) - [002832.CN](https://longbridge.com/en/quote/002832.CN.md) - [300979.CN](https://longbridge.com/en/quote/300979.CN.md) - [002003.CN](https://longbridge.com/en/quote/002003.CN.md) - [02611.HK](https://longbridge.com/en/quote/02611.HK.md) - [603365.CN](https://longbridge.com/en/quote/603365.CN.md) - [03306.HK](https://longbridge.com/en/quote/03306.HK.md) - [605080.CN](https://longbridge.com/en/quote/605080.CN.md) - [600398.CN](https://longbridge.com/en/quote/600398.CN.md) - [01836.HK](https://longbridge.com/en/quote/01836.HK.md) ## Related News & Research - [BREAKINGVIEWS-US gas tax is a fossil from another era](https://longbridge.com/en/news/286925343.md) - [Russia plans to return staff to Iranian Bushehr nuclear plant in coming weeks, RIA reports](https://longbridge.com/en/news/286905394.md) - [13:41 ETUT Haslam Marks Decade in Major International Ranking's Top Five U.S. Public Schools](https://longbridge.com/en/news/286804132.md) - [Soybeans Pushing Gains to Tuesday Morning](https://longbridge.com/en/news/286929660.md) - [Always-on fraud checks cut Suncoast's losses by a third](https://longbridge.com/en/news/286815368.md)