BOCOM INTL: Moderate growth in mainland consumption expected by 2026. It is recommended to adopt a strategy of both offense and defense.

BOCOM INTL released a research report stating that consumer spending is expected to slightly pick up in 2025 and continue to grow moderately in 2026. There are multiple trends of transformation in the current consumer market, with the core being the evolution towards consumer-centricity. In terms of consumer trends, value for money and emotional value jointly dominate current consumer decisions, providing key directions for companies in product innovation and brand building. The bank recommends adopting a strategy of both offense and defense. Key focus can be on three types of companies: firstly, companies benefiting from supply and demand improvements and capable of releasing profit elasticity through efficiency improvements, such as SHENZHOU INTL (02313), rated "buy"; secondly, companies that keenly capture consumer trends and have rapid growth potential in niche markets, such as POP MART (09992) and MNSO (09896), both rated as "buy"; thirdly, industry leaders with stable growth foundations, solid moats, and cyclical resilience, such as ANTA SPORTS (02020) and CHINA RES BEER (00291), both rated as "buy".