Core Viewpoint - The Hong Kong stock market's new consumption sector is attracting public funds due to low valuation levels and high earnings elasticity, driven by the confirmation of annual report performances [1][2]. Group 1: Performance and Market Trends - In March, the dual positive logic of listed company performances and online retail data stimulated fund managers' sensitivity towards consumer sector allocations, with online consumption data showing a growth rate of 9.2% in the first two months of 2026, significantly higher than the overall retail sales growth of 2.8% [2][5]. - The new consumption sector, previously quiet, has seen significant movements due to the release of annual report performances, with several leading companies exceeding expectations and contributing to substantial excess returns for fund portfolios [3]. Group 2: Key Companies and Earnings Growth - China Oriental Education, a company focused on vocational training in beauty, hairdressing, and pet care, reported a revenue of 4.616 billion yuan for 2025, a year-on-year increase of 12.1%, and a net profit of 756 million yuan, up 47.5%, reinforcing confidence among institutional investors [3]. - Guoquan Company, a leader in the hot pot ingredient retail sector, achieved a revenue of 7.810 billion yuan in 2025, a growth of 20.71%, and a net profit of 433 million yuan, which surged by 87.76%, showcasing significant profitability elasticity [4]. Group 3: Fund Manager Strategies - Public funds are increasing their allocation to the new consumption sector, driven by both past performance confirmations and future growth trends, with a focus on high-margin, brand-premium, and high-end market potential companies [6][7]. - Fund managers are particularly interested in sectors such as food, jewelry, beauty, and small appliances, which generally exhibit high gross margins and earnings elasticity, aligning with the trend of consumption upgrades [7].