UOB Kay Hian Identifies ANTA SPORTS, CHINA RES BEER, HAIDILAO, and YUM CHINA as Top Picks Amid Improved Consumption Trends During CNY Holiday
Improvement in Consumption: This year's Chinese New Year holiday data indicates a recovery in the domestic consumption market, particularly in tourism, culture, and catering sectors, compared to last year.
Broker Optimism: UOB Kay Hian expresses optimism about structural consumption growth in China, highlighting potential policy support and overseas growth opportunities, especially in catering and experiential consumption.
Top Stock Picks: UOB Kay Hian's top stock recommendations include ANTA SPORTS, CHINA RES BEER, HAIDILAO, and YUM CHINA, all rated as Buy, with an Overweight rating for the domestic consumption sector.
Target Price Adjustments: The broker has adjusted target prices for several stocks based on CNY holiday consumption and travel data, increasing targets for HAIDILAO, LI NING, KWEICHOW MOUTAI, and WULIANGYE.
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<UOB Kay Hian's Consumer Ratings and Target Prices (Table)>
Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with notable gains for ANTA SPORTS (+2.365%) and HAIDILAO (+5.822%), while LI NING (-1.875%) and SANDS CHINA LTD (-1.271%) experienced declines.
Short Selling Data: Short selling activity varied across stocks, with LI NING having the highest ratio at 23.224%, while TSINGTAO BREW reported the lowest at 1.075%.
Investment Ratings: Most stocks listed received a "Buy" rating, except for LI NING, which is rated as "Hold," indicating a generally positive outlook for the majority of the stocks.
Market Insights: Citi's estimate for Macau's February gross gaming revenue (GGR) is projected at MOP20 billion, reflecting a 1% year-over-year increase, suggesting a stable gaming market.
UOB Kay Hian Identifies ANTA SPORTS, CHINA RES BEER, HAIDILAO, and YUM CHINA as Top Picks Amid Improved Consumption Trends During CNY Holiday
Improvement in Consumption: This year's Chinese New Year holiday data indicates a recovery in the domestic consumption market, particularly in tourism, culture, and catering sectors, compared to last year.
Broker Optimism: UOB Kay Hian expresses optimism about structural consumption growth in China, highlighting potential policy support and overseas growth opportunities, especially in catering and experiential consumption.
Top Stock Picks: UOB Kay Hian's top stock recommendations include ANTA SPORTS, CHINA RES BEER, HAIDILAO, and YUM CHINA, all rated as Buy, with an Overweight rating for the domestic consumption sector.
Target Price Adjustments: The broker has adjusted target prices for several stocks based on CNY holiday consumption and travel data, increasing targets for HAIDILAO, LI NING, KWEICHOW MOUTAI, and WULIANGYE.
Daiwa Reports Positive Consumption Trends During Lunar New Year Holiday in Mainland; Recommends GUMING, YUM CHINA, and NONGFU SPRING
Lunar New Year Consumption Performance: The Lunar New Year holiday showed strong demand in catering and tourism, prompting Daiwa to recommend stocks like GUMING and YUM CHINA that benefit from this trend.
Economic Reflation Signs: The report highlighted initial signs of reflation in the Chinese economy driven by service consumption, with rising prices and reduced promotions in various sectors.
Catering Sector Outlook: Daiwa remains optimistic about GUMING and YUM CHINA, suggesting that a broader recovery in catering could enhance alcohol consumption at venues, while also favoring NONGFU SPRING and TINGYI due to domestic tourism.
Caution on MIXUE GROUP: Despite the positive outlook for many stocks, Daiwa expressed caution regarding MIXUE GROUP due to uncertain profit growth visibility, maintaining a Neutral rating.
HSI Rises 138 Points in Half-Day Trading as CMOC/LAOPU GOLD Jumps 6% After Blue Chip Inclusion; Overall HSI Increases 32% in Year of the Snake
Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.
HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.
Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.
US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.
HSI Declines by 65 Points at Opening; CATL and CMOC Start Strong Among Blue Chips; Alibaba and Baidu Struggle
US Inflation and Stock Market Update: US inflation was below expectations while core inflation met them; the DJIA rose by 0.1% last Friday.
Hong Kong Stock Market Performance: The Hong Kong bourse opened lower, with the HSI down 0.2% and other indices also showing declines.
HSI Quarterly Review Changes: CATL, CMOC, and LAOPU GOLD were added to the HSI, while ZHONGSHENG HLDG was removed; CATL and CMOC saw slight increases in their stock prices.
Notable Stock Movements: Stocks like BABA-W and BIDU-SW dropped significantly after being listed as Chinese military companies, while ANTA SPORTS received approval for a stake acquisition in PUMA.
BEKE-W and HORIZONROBOT-W Join HSCEI; CHINA RES BEER and MENGNIU DAIRY Excluded
Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from March 9, 2026.
Additions and Deletions: BEKE-W and HORIZONROBOT-W will be added to the HSCEI, while CHINA RES BEER and MENGNIU DAIRY will be removed, keeping the total number of constituents at 50.
Short Selling Data: The short selling data indicates significant activity for the stocks involved, with BEKE-W showing a short selling ratio of 34.793%.
Market Impact: Changes will take effect after market close on March 6, 2026, potentially influencing trading strategies and market dynamics.
<UOB Kay Hian's Consumer Ratings and Target Prices (Table)>
Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with notable gains for ANTA SPORTS (+2.365%) and HAIDILAO (+5.822%), while LI NING (-1.875%) and SANDS CHINA LTD (-1.271%) experienced declines.
Short Selling Data: Short selling activity varied across stocks, with LI NING having the highest ratio at 23.224%, while TSINGTAO BREW reported the lowest at 1.075%.
Investment Ratings: Most stocks listed received a "Buy" rating, except for LI NING, which is rated as "Hold," indicating a generally positive outlook for the majority of the stocks.
Market Insights: Citi's estimate for Macau's February gross gaming revenue (GGR) is projected at MOP20 billion, reflecting a 1% year-over-year increase, suggesting a stable gaming market.
UOB Kay Hian Identifies ANTA SPORTS, CHINA RES BEER, HAIDILAO, and YUM CHINA as Top Picks Amid Improved Consumption Trends During CNY Holiday
Improvement in Consumption: This year's Chinese New Year holiday data indicates a recovery in the domestic consumption market, particularly in tourism, culture, and catering sectors, compared to last year.
Broker Optimism: UOB Kay Hian expresses optimism about structural consumption growth in China, highlighting potential policy support and overseas growth opportunities, especially in catering and experiential consumption.
Top Stock Picks: UOB Kay Hian's top stock recommendations include ANTA SPORTS, CHINA RES BEER, HAIDILAO, and YUM CHINA, all rated as Buy, with an Overweight rating for the domestic consumption sector.
Target Price Adjustments: The broker has adjusted target prices for several stocks based on CNY holiday consumption and travel data, increasing targets for HAIDILAO, LI NING, KWEICHOW MOUTAI, and WULIANGYE.
Daiwa Reports Positive Consumption Trends During Lunar New Year Holiday in Mainland; Recommends GUMING, YUM CHINA, and NONGFU SPRING
Lunar New Year Consumption Performance: The Lunar New Year holiday showed strong demand in catering and tourism, prompting Daiwa to recommend stocks like GUMING and YUM CHINA that benefit from this trend.
Economic Reflation Signs: The report highlighted initial signs of reflation in the Chinese economy driven by service consumption, with rising prices and reduced promotions in various sectors.
Catering Sector Outlook: Daiwa remains optimistic about GUMING and YUM CHINA, suggesting that a broader recovery in catering could enhance alcohol consumption at venues, while also favoring NONGFU SPRING and TINGYI due to domestic tourism.
Caution on MIXUE GROUP: Despite the positive outlook for many stocks, Daiwa expressed caution regarding MIXUE GROUP due to uncertain profit growth visibility, maintaining a Neutral rating.
HSI Rises 138 Points in Half-Day Trading as CMOC/LAOPU GOLD Jumps 6% After Blue Chip Inclusion; Overall HSI Increases 32% in Year of the Snake
Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.
HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.
Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.
US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.
HSI Declines by 65 Points at Opening; CATL and CMOC Start Strong Among Blue Chips; Alibaba and Baidu Struggle
US Inflation and Stock Market Update: US inflation was below expectations while core inflation met them; the DJIA rose by 0.1% last Friday.
Hong Kong Stock Market Performance: The Hong Kong bourse opened lower, with the HSI down 0.2% and other indices also showing declines.
HSI Quarterly Review Changes: CATL, CMOC, and LAOPU GOLD were added to the HSI, while ZHONGSHENG HLDG was removed; CATL and CMOC saw slight increases in their stock prices.
Notable Stock Movements: Stocks like BABA-W and BIDU-SW dropped significantly after being listed as Chinese military companies, while ANTA SPORTS received approval for a stake acquisition in PUMA.
BEKE-W and HORIZONROBOT-W Join HSCEI; CHINA RES BEER and MENGNIU DAIRY Excluded
Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from March 9, 2026.
Additions and Deletions: BEKE-W and HORIZONROBOT-W will be added to the HSCEI, while CHINA RES BEER and MENGNIU DAIRY will be removed, keeping the total number of constituents at 50.
Short Selling Data: The short selling data indicates significant activity for the stocks involved, with BEKE-W showing a short selling ratio of 34.793%.
Market Impact: Changes will take effect after market close on March 6, 2026, potentially influencing trading strategies and market dynamics.
