Jiaxin Silk (002404) Limit-Up Analysis: Driven by Sector Rotation and Consumption Recovery

Zhejiang Jiaxin Silk Co., Ltd. (002404) hit the limit-up on November 19, 2025, and is an important stock in the recent rise of the apparel and home textile sector [0]. Founded in 1999 and listed in 2010, the company mainly engages in apparel (52.05%), silk products (22.31%), etc., covering the entire silk industry chain [0]. The main driving factors for this limit-up include:

1. Sector Rotation Effect
   : Funds shifted from high-valued sectors to traditional consumer sectors, driving the overall rise of the apparel and home textile sector [0];
2. Industry Recovery
   : From January to October 2025, retail sales of apparel, footwear, hats, and knitwear increased by 3.5% year-on-year, indicating an industry recovery trend [0];
3. Linkage Effect
   : Formed a limit-up linkage with peers in the same sector such as Zhen’aimeijia and Jiumuwang, enhancing sector heat [0,2,4];
4. Company’s Own Factors
   : Overseas revenue accounts for 52.25%, benefiting from RMB depreciation; meanwhile, it has multiple concepts such as C2M and cross-border e-commerce, attracting market attention [0].

1. Multi-Concept Overlay Advantage
   : The company covers concepts such as RMB depreciation beneficiary, cross-border e-commerce, and photovoltaics, catering to the needs of different types of investors [0];
2. Significant Sector Linkage
   : This limit-up is not an isolated event but part of the overall sector rise, reflecting the concentrated allocation of funds to traditional consumer sectors [0,2];
3. Low Geopolitical Risk
   : The Japanese market accounts for only 1% of exports, so the impact from relevant geopolitical events is limited [0,3];
4. Attractiveness of Stable Dividends
   : The dividend yield has maintained between 3.92% and 4.97% in the past three years, attracting long-term value investors [0].

1. Sustainability of Sector Rotation
   : If funds flow back to high-valued sectors, it may lead to short-term stock price corrections;
2. Industry Competition Pressure
   : The apparel and home textile industry is highly competitive, and the company’s revenue growth rate is slow (0.78% YoY);
3. Macroeconomic Volatility
   : Consumer demand is greatly affected by macroeconomics, with uncertainties.

1. Continued Consumption Recovery
   : The growth of industry retail data is expected to continue driving sector development [0];
2. New Business Growth Points
   : Cross-border e-commerce business and photovoltaic accessories business (grandson company Taihe New Energy) may become future growth drivers [0];
3. RMB Depreciation Dividend
   : High overseas revenue share, continuous RMB depreciation will enhance the company’s profitability [0].

Jiaxin Silk’s this limit-up is the result of the combined effect of the apparel and home textile sector recovery and sector rotation. The company’s multi-concept layout and stable fundamentals enhance its market attractiveness. Investors should pay attention to the sector rotation trend, company business progress, and macroeconomic changes, and objectively evaluate short-term fluctuations and long-term value.