Citigroup: European economic growth may drive local stock market performance, benefiting companies such as CKH Holdings (00001).

Citigroup released a research report stating that the total defense expenditure plan of the European Union reaches 800 billion euros, aiming to increase the defense expenditure as a percentage of GDP to 3%. This will not only stimulate European economic growth, but also potentially drive the performance of local stock markets, and bring opportunities for Chinese enterprises with high exposure in the European market. Citigroup has given a "buy" rating to Chinese large enterprises with at least 25% of their income in Europe, including: CKH HOLDINGS(00001), VTECH HOLDINGS(00303), Yealink(300628.SZ), Beijing Roborock Technology(688169.SH), JOHNSON ELEC H(00179), Zhejiang Supor(002032.SZ), Zhejiang Weixing Industrial Development(002003.SZ), LENOVO GROUP(00992), STELLA HOLDINGS(01836), which may benefit from better profit growth prospects in Europe. Citigroup states that the improvement in European economic growth may lead to a 2% annual increase in earnings per share growth rate for local indices over the next five years. This higher growth prospect may further drive up European stock markets in the short term. At the same time, this may also benefit Chinese companies selling in Europe. According to the bank's analysis, industries with a higher proportion of European income in the Chinese stock market include conglomerates, capital goods, communication infrastructure, consumer goods, and the CECEP Solar Energy industry.