Guosen Securities says the textile & apparel index has outperformed the market
Q3-to-date, with textile manufacturing outpacing branded apparel. It expects
2026 H1 branded goods to outperform manufacturing as the sector sees a modest
domestic demand recovery, continued external demand pressure and pronounced
dispersion across names. Sports/outdoor: mass-sport faces stock-based
competition while professional niche segments remain highly buoyant. Home
textiles enter the autumn-winter peak and H2 large-SKU refreshes should support
continued growth. With tariff clarity, stabilizing raw-material costs and
downstream restocking, QoQ improvement is likely and revenue should recover
first. Customer-mix differences are the key driver of earnings divergence.
Industry leaders’ valuations sit near historical lows and could see concurrent
fundamental and valuation upside.
