Fixed Income - October foreign trade underperformed expectations, while prices showed some recovery, indicating potential economic downward pressure in Q4 [7] - The cumulative year-on-year growth of fixed asset investment showed negative growth, suggesting that traditional investment-driven economic models may no longer be sustainable [7] - The consumer sentiment remains low, with October's price recovery being weak, reflecting a lack of domestic economic recovery momentum [7] - The cancellation of tariffs on fentanyl by the US and the extension of the suspension of reciprocal tariffs may provide some support for foreign trade in November and December [7] - The bond market remains optimistic, with the expectation of further policy interest rate cuts as the cost of interest-bearing liabilities for banks declines [7] Credit Analysis - The credit spread for most industries has compressed, with significant reductions in city investment bonds [11] - The credit market is expected to maintain a relatively optimistic outlook in November due to several factors, including high historical percentiles for mid-to-long-term credit bonds and a favorable funding environment [14] - The overall credit market saw a decrease in transaction volume, but the credit spreads for various industries showed different degrees of compression [12][14] New Consumption - The beauty market in China showed steady performance, with retail sales of cosmetics growing by 3.9% year-on-year from January to September 2025, outperforming the overall retail sales growth [16] - The personal care segment performed better than the overall beauty market, with significant growth in specific brands driven by product innovation and channel expansion [17] - Domestic leading brands are expected to continue their strong performance due to their multi-faceted advantages in branding, products, channels, and management [18] Food Container Industry - The food container industry is experiencing steady expansion, driven by diverse downstream demand [20] - The global food container market is projected to grow from $163.7 billion in 2024 to $227.3 billion by 2032, with a compound annual growth rate of 4.19% [21] - The proposed listing of New Tianli, a leading company in the thermoformed food container industry, is expected to enhance its influence in the market [20][21] Agriculture - The pig breeding industry is undergoing significant policy transformations, with a notable decline in breeding stock and an increase in the culling of sows [25][26] - The price of pork has dropped below the industry cost line, leading to accelerated capacity reduction in the industry [26] - The poultry industry faces a "high capacity, weak consumption" contradiction, with leading companies expected to gain market share [28] - Recommendations include focusing on cost-efficient leading companies in the agriculture sector, which are likely to benefit from policy support and market dynamics [27]

Investment Rating - The report indicates a positive outlook for the food container industry, driven by downstream demand growth, particularly in the takeaway and street beverage sectors [1][2]. Core Insights - The food container industry is experiencing steady expansion, with diverse downstream demands enriching the product matrix. The global food container market is projected to grow from USD 163.7 billion in 2024 to USD 227.3 billion by 2032, with a CAGR of 4.19% [2][5]. - The plastic food container segment is growing rapidly, accounting for approximately one-third of the total market. The global plastic food container market is expected to increase from CNY 253.05 billion in 2023 to CNY 355.49 billion by 2030, with a CAGR of 4.98% [2][5]. - The domestic food industry in China is robust, with a market size of approximately CNY 10.04 trillion in 2023. The takeaway sector has seen significant growth, with the market size increasing from CNY 596.8 billion in 2019 to CNY 1.19 trillion in 2022, and a penetration rate rising from 12.8% to 27.1% [2][5][8]. - The street beverage market in China is also on the rise, with total retail sales growing from CNY 106.1 billion in 2017 to CNY 188.6 billion in 2022, reflecting a CAGR of 12.19% [2][5][8]. Summary by Sections 1. Growth Drivers in the Food Container Industry - The food container industry is benefiting from the growth of the takeaway and street beverage sectors, with increasing consumer demand for convenience and diverse food options [5][8]. - The market is supported by the rise of e-commerce and delivery services, creating new growth opportunities for food containers [5][8]. 2. Company Profile: Xintianli - Xintianli is a leading enterprise in the domestic thermoformed food container industry, providing comprehensive solutions for well-known food companies and restaurant brands [2][17]. - The company reported a revenue of CNY 536 million in H1 2025, a year-on-year increase of 1.14%, and a net profit of CNY 42.57 million, up 17.71% year-on-year [2][21]. 3. Market Performance Overview - The median stock price change for the North Exchange consumer service sector was -3.16% during the week of November 3 to November 7, 2025, with most companies experiencing declines [2][23]. - The median price-to-earnings (P/E) ratio for the consumer service sector decreased from 53.6X to 49.7X, indicating a general decline in market valuation [2][26]. 4. Industry Valuation Metrics - The median TTM P/E ratio for the broader consumer sector is reported at 54.0X, down from 56.3X, reflecting a slight contraction in valuation [2][34]. - The food and beverage sector's median TTM P/E ratio decreased from 58.0X to 56.5X, indicating a similar trend in valuation adjustments [2][35].