GF Securities: The concentration of the textile manufacturing zone is expected to further increase.

Jin10 data reported on October 28 that GF Securities research report stated that in the upstream textile manufacturing zone, it is recommended to follow companies whose third-quarter performance is expected to exceed expectations in the short term. In the medium term, it is suggested to follow companies benefiting from the big pump in wool prices, inventory appreciation, and recovering downstream orders. In the long term, it is recommended to follow leader companies in the zone, as the “equivalent tariffs” have limited impact on leader companies, and the industry's concentration is expected to further increase. The long-term performance of these companies is expected to maintain steady rise. In the downstream apparel and home textile zone, firstly, it is suggested to follow home textile leaders whose third-quarter performance is expected to exceed expectations. Secondly, it is recommended to follow companies with recovering traditional main businesses and high growth in new consumption businesses with large future development space.