Hong Kong Stock Market Concept Tracking | Consumer Sector Welcomes Good News! Six Departments Release Important Documents, Focus on Investment Opportunities Under These Trends (Attached Concept Stocks)

Recently, the market has focused on boosting consumption. On November 14th, after the State Council deployed measures to enhance the adaptability of consumer goods supply and demand and further promote consumption policies, specific plans have been implemented. On November 26th, the Ministry of Industry and Information Technology, the Ministry of Commerce, and six other departments jointly issued the "Implementation Plan for Enhancing the Adaptability of Consumer Goods Supply and Demand and Further Promoting Consumption" (referred to as the "Plan" below). Insiders mention that with the gradual implementation of policy details, the consumer industry will usher in a new round of development opportunities. The plan points out that by 2027, the structure of consumer goods supply will be significantly optimized, forming 3 trillion-level consumer sectors and 10 billion-level consumer hotspots, creating a number of high-quality consumer goods with cultural connotations that are world-renowned. By 2030, a high-quality development pattern of interactive supply and consumption, mutually promoting each other, will be basically formed, and the contribution rate of consumption to economic growth will steadily increase. The plan also mentioned expanding diversified interest-based consumption supply. Actively developing interest-based consumer products such as pet peripherals, animation, trendy clothing, and trendy toys. On the premise of strict risk control and ensuring safety, orderly expanding low-altitude tourism, aviation sports, private flying, consumer-grade drones, and other low-altitude consumption supplies. Expanding post-market consumption of automobile modifications, RV camping, automobile races, promoting the high-quality development of car rental. Supporting companies to incubate local intellectual property (IP), innovate design cultural and creative products, animation peripherals, etc., develop brand authorization, and launch a series of IP-authorized products. Encouraging traditional supermarkets, shopping centers, and commercial streets to design and renovate, introducing "concept stores" or collection-type trendy shops. Meeting personalized needs has also become one of the keys to boosting consumption. The plan mentions orderly developing live streaming e-commerce, instant retail, curated retail, and recycling e-commerce, and other new formats. Encouraging platform companies to legally and compliantly use artificial intelligence technology to explore user demand, match push products and services. The traditional consumption system is constrained by the triple shackles of information asymmetry, standardized supply, and space-time constraints, service consumption is trapped in "passive response", and product consumption is trapped in the imbalance between "mass production and personalized demand". Artificial intelligence is promoting the deep transformation of consumption logic from "supply determines consumption" to "consumption defines supply" through multimodal interaction, predictive algorithms, and ecological integration technologies. The popularization and application of artificial intelligence technology are providing consumers with more products. A report released by Canalys shows that China's local AI ecosystem is developing rapidly, and the penetration rate of AIPC is expected to reach 34% by 2025, further rising to 52% by 2026. It is worth noting that since November, the traditional consumer and anti-insulation sectors have shown relatively excellent performance. Food and beverage, liquor, dairy, internet e-commerce, pet economy, and other large consumer sectors have led the rally. At the same time, data shows that in October, the core CPI rose by 1.2% year-on-year, a continuous increase for the 6th month; the PPI, which had been the same as the previous month, turned into a 0.1% increase month-on-month, the first increase of the year. These data indicate that the consumption market is warming up, providing fundamental support for the performance of consumer stocks. Huachuang Securities research report stated that the structural recovery trend of some consumer service industries is becoming more apparent, with signs of stable improvement at the operational level, gradually moving out of the bottom range. It is recommended to focus on the following two main themes: first, the hotel industry, with an optimized supply and demand pattern, and operating data steadily improving. Second, the duty-free industry, with favorable policies in place, is waiting for additional industry increments. Pu Yin International Securities believes that "meeting new trends and embracing new consumption" will still be an important investment strategy for the consumer industry in 2026. In the view of this institution, the following five major consumption trends cover most of the investment opportunities in the Chinese consumer industry in 2026: (1) High-value-for-money domestic brands will continue to occupy consumers' minds, such as chain coffee, sportswear, and cosmetics; (2) Demand for emotional consumption will remain strong, such as trendy toys, cosmetics, and pets; (3) Emerging sales channels are accelerating their rise, such as instant retail, membership stores, and snack retailers; (4) Chinese consumer companies are seizing the opportunity to go global, such as trendy toys, coffee, and home electronics; (5) Health-related consumption is a long-term trend, such as the silver-haired economy, health products, and medical services. China Galaxy Securities stated that the consumer industry needs to pay attention to the medium and long-term goals of consumption in the "14th Five-Year Plan" and focus on the policies related to consumption in 2025 in preparation for 2026. The institution holds an optimistic view on the development of overseas business in the consumer industry in 2026. As for consumer stocks, the institution recommends focusing on companies with high dividend yield and quality in the process of market style switching (from high to low), as well as companies with alpha in various segmented tracks. Stocks related to the concepts mentioned above: HWORLD-S (01179): In late November, Guosen issued a research report maintaining an "outperform the market" rating for HWORLD-S (01179). The company's industry-leading position is stable, with accelerated growth in the third quarter and revenue and net profit exceeding expectations, particularly strong performance in the Chinese region. The company drives profit growth by strengthening the membership system and revenue management, promoting a year-on-year positive average room price in the domestic market. The store network continues to expand rapidly, with a light-asset franchise model becoming the main growth engine, driving profit improvement. If cyclical expectations improve, the company is expected to demonstrate strong performance potential, and the high dividend policy provides additional highlights. TRIP.COM-S (09961): In late November, Guotai Junan issued a research report maintaining a "buy" rating for TRIP.COM-S (09961) with a target price of HK$733. The domestic growth is stable, international growth continues to be strong, the company's investment income is increasing, and it continues to expand its user share and influence. China Tourism Group Duty Free Corporation (01880): In early November, China Minsheng International issued a research report raising the target price of China Tourism Group Duty Free Corporation (01880) by 50% to HK$90, reflecting stronger profit growth momentum supported by favorable policies. The company's operating performance is expected to improve further. The rating is maintained as "outperform the market". BYD COMPANY (01211): In early November, Goldman Sachs released a research report predicting an average annual compound growth rate of 30% for the profit of BYD COMPANY (01211, 002594.SZ) from 2025 to 2028, with the overseas profit contribution increasing from 21% in 2024 to 60% in 2028. The rating is maintained as "buy", with an H-share target price of HK$141 and an A-share target price of RMB144. The management of BYD Company Limited is confident in long-term overseas expansion, with a target of 1.5 million vehicles sold overseas by 2026, which will drive profit growth. Although the management acknowledges uncertainties in the Chinese market demand, they plan to announce key technologies and launch new products in the first quarter of next year, adopting a more flexible pricing strategy. HAIER SMARTHOME (06690): In early November, Dahua Jisheng issued a research report stating that HAIER SMARTHOME (06690) had achieved third-quarter performance in line with expectations, with a year-on-year revenue increase of 10% to RMB 77.56 billion and a net profit of RMB 5.34 billion, a year-on-year increase of 13%. Mainland revenue increased by 11% year-on-year, with the air conditioning business performing well, with a year-on-year increase of over 30%, mainly benefiting from product innovation and direct sales transformation strategies. Overseas revenue increased by 8% year-on-year, with a slight improvement in operating profit margin. Looking ahead to the fourth quarter of 2025, the report indicates that despite facing challenges from a high base effect, management expects revenue to maintain mid-single-digit growth, and the net profit growth rate is expected to exceed the revenue growth rate. The rating is maintained as "buy", with the target price raised from HK$39.1 to HK$39.4. POP MART (09992): In early November, Huachuang Securities issued a research report maintaining a "strong buy" rating for POP MART (09992). Based on the operational performance in Q3 of 2025, the company's profit forecast is raised, with an expected net profit attributable to shareholders of RMB 12.32 billion in 2025, RMB 16.93 billion in 2026, and RMB 20.09 billion in 2027, corresponding to a target price of HK$345.39. Overall revenue increased by 245-250% in Q3, with revenue from China (including Hong Kong, Macau, and Taiwan) up by 185-190%, and overseas revenue up by 365-370%. The high growth in performance confirms the long-term potential of global expansion and IP ecological synergy. The company's rich IP matrix and diversified product matrix are expected to continue to meet the demand of the trendy toy market, and the company's capability to operate the entire IP industry chain is promising.