HK Stock Market Move | The catering stocks continued to fall in the near term, HELENS (09869) dropped by more than 6%. The catering consumption showed a weak recovery trend.

The catering sector continued its recent decline. As of the time of writing, HELENS (09869) fell by 6.13% to 1.99 Hong Kong dollars; JIUMAOJIU (09922) dropped by 3.17% to 2.75 Hong Kong dollars; XIABUXIABU (00520) declined by 3.33% to 0.87 Hong Kong dollars; HAIDILAO (06862) fell by 3.02% to 14.12 Hong Kong dollars. Huaan stated that the catering consumption has shown a weak recovery trend in the past 24 years, with a year-on-year increase of +4% in November in social retail catering consumption, and a month-on-month growth of 0.8 percentage points. The nationwide effect of catering consumption vouchers is relatively limited. Looking at the current implementation of catering consumption vouchers, the bank predicts that there is still room for improvement in terms of scope, duration, and discounts. Looking ahead to 2025, if the catering consumption voucher policy is further promoted, there is hope for recovery in the B-end, and small B may become a source of revenue growth. Goldman Sachs previously pointed out in a research report that same-store sales in the catering industry continued to be weak in November, with fluctuating demand. Regarding policy stimulation, the bank observed that more cities/provinces have introduced catering consumption vouchers, but it believes that the impact varies depending on brand and region, and companies covered by the bank have generally not seen a significant boost effect yet. The bank noted that HAIDILAO's average turnover rate in November was slightly lower year-on-year, but considering the higher base compared to October and the volatility of demand, this performance is still considered stable. JIUMAOJIU's weak trend after the National Day holiday continued in November, indicating that the recovery from October to November is lower than the third quarter compared to pre-epidemic levels.