Hong Kong stock concept tracking | Li Feng Group's surge in sales boosts luxury goods stocks. Institutions are optimistic about the prospects of luxury goods in Mainland China in the second half of 2025 (with concept stocks).

European stock markets rose to their highest level in over a month last Thursday, lifted by luxury goods and technology sectors. Positive performance from LVMH group reignited optimism in the luxury goods industry, driving stock prices to record highs. LVMH surged by over 8%, while Hermes International rose by 4.9%. Last week, the Goldman Sachs European Luxury Goods Index surged by 8.8%, marking the largest increase since March 2020. Amelie Derambure, Senior Multi-Asset Portfolio Manager at Amundi Asset Management, stated that the luxury goods industry "has experienced a significant pullback, and the increase in positive news may be enough to drive better performance in the industry." Global consulting firm Bain released a report on the Chinese luxury goods market in 2024, which showed that the market in mainland China did not continue its growth momentum, and is expected to remain steady in 2025. Regarding the market outlook for 2025, Xing Weiwu, Global Partner at Bain, stated: "In 2025, from a domestic perspective, if the government introduces more effective economic and consumption stimulus measures, this may stimulate luxury goods consumption. Taking multiple factors into consideration, we believe that the first half of 2025 in the Chinese mainland luxury goods market will be challenging, but we hold a cautiously optimistic view on the market outlook for the second half of 2025." Luxury goods related Hong Kong stocks: PRADA (01913): Macquarie published a research report, expecting Prada's revenue in the fourth quarter of last year to increase by 15% year-on-year, mainly driven by the strong performance of Miu Miu and the resilient performance of Prada in various regions. The bank expects the company's operating profit in the second half of last year to increase by 20% year-on-year, mainly due to operating leverage and a favorable brand mix. Macquarie believes that Miu Miu still has ample room for growth, as the brand only had 139 stores globally as of the first half of last year, far fewer than Prada's 417 stores. Macquarie raised its net profit forecast for the company for 2024 to 2026 by 0.7%, 0.7%, and 3.5% respectively, to reflect the strong performance of Miu Miu, Prada's resilience, and improving operating leverage.