Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for the sector's fundamentals and expected performance exceeding the benchmark index [3]. Core Insights - The social retail sales total for January-February 2025 reached 83,731 billion yuan, with a year-on-year growth of 4%. The service consumption market is showing stable growth, particularly in dining and travel services, while e-commerce is recovering faster than the overall retail market [1][2][4]. - The report highlights the impact of the "Consumption Promotion Special Action Plan" policy, which is expected to drive positive trends in service consumption and the retail industry [1][2]. - In terms of category performance, essential goods such as grain, oil, and food saw a year-on-year increase of 11.5%, while discretionary categories like cosmetics and clothing showed improvements with growth rates of 3.3% and 4.4%, respectively [2][4]. Summary by Relevant Sections Industry Scale - The industry comprises 132 listed companies, with a total market capitalization of 1,158 billion yuan and a circulating market capitalization of 1,055.2 billion yuan [3]. Industry Index Performance - The absolute performance of the industry index over the past month is -10.8%, with a 6-month performance of 44.2% and a 12-month performance of 11.1%. Relative performance shows a decline of -7.9% over the past month, but a positive 35.6% over 6 months [4]. Retail Sales Breakdown - In January-February, the retail sales of essential goods grew by 11.5% for grain and oil, and 5.5% for daily necessities. The retail sales of household appliances increased by 10.9%, while the telecommunications equipment category, driven by new government subsidies for mobile phones, surged by 26.2% [2][19].

Investment Rating - The report indicates a stable outlook for the economy, with a focus on policy support and external demand as key drivers for growth [2][3]. Core Insights - The overall economic recovery is still reliant on policy measures and external demand, with internal dynamics such as consumer spending and private investment needing improvement [3][4]. - The production sector shows steady performance, with industrial value-added growth at 5.9% year-on-year for January-February 2025, slightly lower than December 2024's 6.2% [8][10]. - Consumer spending is recovering, with retail sales growth of 4.0% year-on-year in January-February 2025, up from 3.7% in December 2024 [17][21]. - Investment is showing marginal improvement, with fixed asset investment growth at 4.1% year-on-year for January-February 2025, compared to 3.2% for the entire previous year [24][25]. Summary by Sections 1. Production: Steady Performance - Industrial value-added growth for January-February 2025 is 5.9%, with a month-on-month increase of 0.51% in February [8][10]. - Export-oriented sectors like transportation equipment and automotive show the highest growth rates, while real estate-related sectors remain subdued due to slow downstream demand [10][12]. 2. Consumption: Bright Performance in Services - Social retail sales grew by 4.0% year-on-year in January-February 2025, higher than December 2024's 3.7% [17][21]. - Service retail sales increased by 4.9%, although this is a decline from December's 6.2% [17][21]. - Online consumption shows a significant recovery, with a year-on-year growth of 5.7% in January-February 2025, compared to 1.5% in December 2024 [21][22]. 3. Investment: Marginal Improvement - Fixed asset investment growth is at 4.1% year-on-year for January-February 2025, an increase from 3.2% in the previous year [24][25]. - Real estate investment shows a year-on-year decline of 9.8%, while manufacturing and broad infrastructure investments grow at 9.0% and 10.0%, respectively [25][26]. - The improvement in broad infrastructure investment is primarily driven by high growth in electricity and heat supply investments, which increased by 25.4% [26][27].