According to a report released by CICC, the National Bureau of Statistics announced that the total retail sales in August amounted to 3.87 trillion yuan (the same below), an annual increase of 2.1%, with a monthly decrease of 0.6 percentage points in growth rate. From January to August, the total retail sales reached 31.2 trillion yuan, a year-on-year increase of 3.4%. In terms of structure, the service industry and online channels in August performed relatively well, with the resilience of essential consumer goods consumption highlighted. It is recommended to pay attention to the subsequent trend of consumption recovery driven by policy measures such as upgrading consumption through trade-ins and promoting domestic demand.

CICC is bullish on the performance of leading companies in the light industry retail and beauty sector this year. Key recommendations include dominant players in high-growth sectors such as the beauty and medical aesthetics sector: giantbio (02367.HK), Proya Cosmetics, Jinbo Biotechnology, Chongqing Baiya Sanitary Products, Runben Biotechnology, Shangmei Shares, and Jiangsu Wuzhong. For trendsetting brands, there are Pop Mart (09992.HK), Miniso (09896.HK), and leading player Beijing Career International. For brands expanding overseas markets and providing cost-effective consumer goods, there are Quanfeng Holdings (02285.HK), Cocreation Grass, CTIHK (06055.HK), Smoore Intl (06969.HK), Jiaoxin Home, and Sewise Time. White-horse leading companies with potential for valuation recovery include Shanghai M&G Stationery Inc., Shenzhen Yuto Packaging Technology, Mingyue Lens, Jason Furniture, Man Wah Hldgs (01999.HK), Oppein Home Group Inc., Suofeiya Home Collection, and Wuxin Technology, among others.