Summary of the Conference Call on China Consumer Sector Outlook 2026 Industry Overview - The focus is on the **China consumer sector** with an emphasis on stock picking strategies for 2026E, balancing "value" vs "growth" investments [1][11] - Anticipation of a less inflationary environment and low expectations for immediate consumption boosts from government policies [1][11] Key Investment Themes 1. **Shift Towards Experience/Service Consumption** - Consumers are increasingly valuing emotional experiences over basic needs, seeking happiness and self-expression [2][23] - 66% of respondents in a survey indicated a willingness to spend more for special moments [23] - Notable examples include Pop Mart's affordable entertainment options and Haidilao's casual dining as social venues [2][23] 2. **Focus on Well-being** - Increased spending on wellness, including health, fitness, and nutrition [3] - Growth potential identified in sportswear (Anta), health supplements (H&H), beauty care (Mao Geping), and tourism (Atour) [3] 3. **Rising "Silver" Economy** - The aging population is creating demand for leisure and cultural experiences [4] - Industries like tourism (Atour, H World), sportswear (Anta), and health supplements (H&H) are expected to benefit [4] 4. **Emerging New Channels** - Growth in omni-channel operations and new offline channels such as membership stores and snack specialty chains [5] - Food companies like Eastroc and Nongfu are adapting to these changes [5] 5. **Multi-brand Strategy** - Industry leaders are expanding brand portfolios to meet diversified consumer demands [6] - Companies like Anta and Midea are revising growth targets to ease channel inventory pressure [6] Top Buys in Consumer Sector - **Consumer Discretionary**: Anta (2020.HK), Pop Mart (9992.HK), Haidilao (6862.HK), Atour (ATAT.O), Midea (300.HK) [1][14] - **Consumer Staples**: CR Beer (291.HK), Eastroc (605499.SS), Mao Geping (1318.HK) [1][14] Additional Insights - The report emphasizes the importance of sustainable profit growth amid a dynamic marketplace [1][11] - The analysis includes a pecking order of various consumer sub-sectors, highlighting the relative strengths of companies within those sectors [1][14] - The report also notes the potential for companies like Li Ning and Haitian to outperform in case of a better-than-expected recovery in consumption [1] Conclusion - The China consumer sector is poised for a transformation driven by changing consumer preferences towards emotional and experiential consumption, with significant opportunities identified across various industries and companies. The focus on well-being, the aging population, and the emergence of new channels are critical factors influencing investment strategies for 2026E [1][2][3][4][5][6]

It is, of course, Friday. And if you are feeling thirsty, well, seems like you could be doing a lot worse than heading to Bar Leone, which is an Italian theme outlet that's just been named the world's very best. It's the first time an Asian venue has taken the crown, and this one is only about three years old.So joining us now is Bar Leone co-founder Lorenzo Antinori in studio with us. So we were just talking there in the in the break about the process and you weren't sure if you would make it to number one ...

Investment Rating - The industry view is rated as In-Line [14] Core Insights - In May, the consumer sector underperformed the Sensex after two consecutive months of outperformance, with approximately 60% of the stocks under coverage underperforming [2][3] - Food & Beverages (F&B) stocks were the worst performers, particularly Varun Beverages and Tata Consumer, while Discretionary & Retail stocks saw some outperformance led by IGI (India) and Trent [2][5] - Over the past 12 months, only Discretionary & Retail stocks outperformed the Sensex, with Jubilant and Nykaa being the best performers, while paint stocks, led by Asian Paints, underperformed the most [3][5] Summary by Category Consumer Sector Performance - The consumer sector saw a valuation de-rating relative to their 5-year average multiples, with exceptions like Jubilant, ITC, Marico, and GCPL experiencing re-rating [1][4] - Majority of stocks are trading below their 200-day moving average (DMA), while most are above their 50-DMA, except for Varun Beverages, ABFRL, Asian Paints, Jubilant, Avenue Supermarts, and ITC [3][19] Stock Ratings and Consensus - Recent consensus rating downgrades were most notable for Vedant Fashion, Dabur, Asian Paints, and Avenue Supermarts, while Page and Titan saw upgrades [5] - Key consensus buy ideas include ITC, Varun Beverages, GCPL, Marico, and Trent, while Asian Paints, Berger, Avenue Supermarts, and ABFRL are key sell ideas [5][20] Earnings Estimates - Downward revisions to consensus earnings estimates for F26 and F27 have continued for most companies, with Berger, Page, and Britannia being the only stocks to see positive upward revisions [6][22] - Changes to consensus earnings estimates show a decline for most companies, particularly in the Paints and F&B sectors [22] Valuation Trends - Paint stocks, Trent, Avenue Supermarts, Dabur, and HUL have seen the most de-rating compared to their five-year trailing average valuation multiples [4] - Current P/E multiples for various sectors indicate a significant range, with Paints at 42.5x and F&B at 55.7x, reflecting a premium over their historical averages [15][24]