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 l

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.