HK Stock Market Move | Most catering stocks are rising. The catering market is booming during the Spring Festival. Institutions point out that under policy stimulus, the industry is expected to show elasticity first.

Most catering stocks are on the rise. As of the time of writing, XIABUXIABU (00520) rose by 4.71%, to 0.89 Hong Kong dollars; YUM CHINA (09987) rose by 4.45%, to 380.4 Hong Kong dollars; NAYUKI (02150) rose by 4.1%, to 1.27 Hong Kong dollars; HAIDILAO (06862) rose by 2.36%, to 14.76 Hong Kong dollars. In terms of news, catering consumption has seen a "good start" during the Spring Festival. It was reported that from January 28th to February 3rd, HAIDILAO had received over 10 million customers nationwide. XIABUXIABU revealed that during the New Year's Eve to the third day of the Lunar New Year, sales at XIABUXIABU stores nationwide showed a significant increase, especially in regions such as Hebei, Anhui, Shandong, Hunan, and Hubei, where sales increased by up to 20% compared to the same period last year. NAYUKI also disclosed that sales at its stores in many regions during the Spring Festival increased by 630%, achieving an increase in order quantity compared to the previous period and year. CITIC SEC pointed out that the central government's clear focus on domestic demand benefits the catering industry directly as a representative of the economic cycle, with a significant ability to rebound. End-catering industry performance is expected to recover first and show elasticity. The firm believes that if policy stimulus is implemented and the macro economy stabilizes and improves, leading companies with strong cost control abilities and relatively firm same-store sales in this wave of price reductions in the catering industry will be the first to realize performance gains. Current valuations have a safety margin, and active dividends and buybacks provide a safety cushion for shareholder returns. Companies that experienced significant declines in same-store sales in the past have higher repair elasticity. The firm continues to recommend brands with strong momentum or are still in an upward trend in opening new stores quickly.