HK Stock Market Move | Catering stocks rebounded in early trading, overall stable growth in catering consumption during the Spring Festival. Under the stimulus of policies, the industry may show resilience first.

In the early morning trading session, the catering stocks rebounded, as of the time of writing, YIHAI INTL (01579) rose by 6.06% to 14 Hong Kong dollars; HAIDILAO (06862) rose by 4.43% to 16.02 Hong Kong dollars; JIUMAOJIU (09922) rose by 3.5% to 2.96 Hong Kong dollars; XIABUXIABU (00520) rose by 1.06% to 0.95 Hong Kong dollars. On the news front, according to the Ministry of Commerce, during the Spring Festival, the sales of key retail and catering enterprises nationwide increased by 4.1% compared to the same period last year, and the operating income of monitored catering enterprises increased by 6.2% year-on-year. The overall catering consumption market is showing a stable growth trend, with significantly increased consumption vitality. Online catering consumption is also showing rapid growth, with online retail sales nationwide increasing by 5.8% year-on-year, demonstrating strong momentum in online consumption. CITIC SEC pointed out that the central government's clear focus on domestic demand directly benefits catering as a representative of the cyclical industry, with strong repair elasticity. Terminal catering performance is expected to recover first and show resilience. The bank believes that if policy stimulus is implemented and macroeconomic stability improves, leading enterprises with strong cost control and relatively stable same-store sales in this wave of catering price cuts will see performance improvement first. Current valuations provide a safety margin, with dividends and buybacks actively providing a safety cushion for shareholders. Enterprises that have experienced significant declines in same-store revenue have higher repair elasticity. The bank continues to recommend enterprises that have high brand momentum or are still in an upward trend in opening new stores rapidly.