Dining stocks rebounded in the morning session, as of the time of publication,$JIUMAOJIU (09922.HK)$up 7.55%, at 4.13 Hong Kong dollars;$HAIDILAO (06862.HK)$up 5.65%, at 16.82 Hong Kong dollars;$XIABUXIABU (00520.HK)$up 1.71%, at 1.19 Hong Kong dollars;$Yum China (YUMC.US)$Rising by 2.19%, closing at HKD 364.6.

On the news front, China International Capital Corporation pointed out that the catering market is performing well, driven by travel and tourism as well as consumption vouchers. Data from Meituan shows that during the first 5 days of the National Day holiday, daily dining-in consumption increased by 33.4% year-on-year; with night-time consumption increasing by 44.8% year-on-year. On one hand, various regions have introduced multiple measures related to catering to stimulate consumption; on the other hand, catering enterprises are enhancing consumer experiences through innovative consumption scenarios and extending operating hours, leading to increased sales and turnover rates for many listed catering companies.

Dahua Jicheng issued research reports pointing out that the stock prices of Chinese consumer stocks covered have rebounded by an average of about 33% since the end of September, but the current valuation level is still not considered high. Anticipating direct policy support and the potential manifestation of wealth effects, Chinese consumer confidence may gradually recover, improving the profit visibility of Chinese consumer goods companies this year, thereby potentially leading to a revaluation. The bank is bullish on Haidilao and others.

Editor/Rocky