HK Stock Market Move | Catering stocks continue yesterday's strong performance, and policy support is expected to drive end-consumer consumption. The subsidies for catering consumption are expected to increase.

The catering sector continued its strong performance from yesterday. As of press time, NAYUKI(02150) rose by 18.08% to HK$2.09; XIABUXIABU(00520) rose by 9.78% to HK$1.01; HELENS(09869) rose by 8.77% to HK$2.48; HAIDILAO(06862) rose by 7.25% to HK$17.16. Debon Securities stated that the overall performance of the catering supply chain sector is under pressure in 2024, and they are expecting a recovery in terminal demand in the future. Due to the continuous weakening of terminal demand, catering supply chain companies lack growth momentum overall. Currently, the valuation levels of most companies are at historically low levels, with sufficient safety margin. They anticipate that the company's performance can stabilize and rebound with the promotion of terminal consumption policies. It is recommended to focus on leading companies with stronger performance resilience and elastic targets that are expected to recover in demand. Dongxing pointed out that as an important sector in consumption, the food and beverage consumption will also benefit from stimulus consumption policies, and they expect a positive improvement in the consumption environment. The food and beverage consumption will benefit from both online and offline platforms like Wuxi Online Offline Communication Information Technology Co. Ltd. They are optimistic about the reform and promotion of national policies in the consumption, trade, and policy environment, expecting a overall improvement in the performance of the food and beverage industry. In particular, with the implementation of relevant plans, consumption in tourism, shopping districts, offline experiences, etc. will be boosted, leading to a clear drive in food and beverage consumption. Additionally, they expect local subsidies to increase the support for the catering industry, which will bring positive help to the industry.