From the perspective of listed leading companies, in recent years, they have accumulated a lot of capital operation and diversified management experience. With the increasing demand for exits in the primary market, many high-quality consumer symbols also provide listed companies with good acquisition and integration opportunities.
According to Zhithong Finance APP, guosen has released research reports stating that the consumer industry is gradually transitioning from a land-grabbing incremental development model to a stage of high-quality growth under a stock paradigm. As the industry enters the stock era, there is an overall bullish outlook on driving sector leaders to achieve a second growth spurt through reasonable and prudent merger and acquisition integration. It is recommended to pay attention to leading offline retail brands with high regional brand awareness and well-established supply chains, as well as leading companies in the beauty and personal care industry with strong brand power and excellent channel and research operation capabilities, which are expected to drive multi-brand growth through external expansion in the future.
Guosen Securities' main points are as follows:
Overall consumer growth is slowing down, and companies are seeking new growth.
Since 2024, overall consumption has continued to grow at a low pace, with a year-on-year growth of 3.5% in total retail sales of consumer goods from January to October. The consumer industry is gradually moving from a land-grabbing incremental development paradigm to a stage of high-quality growth under the stock model. There are opportunities for leading companies to become stronger through mergers and acquisitions within the industry.
From a policy perspective, current policies supporting mergers and reorganization are being strengthened, providing companies with abundant tools for external growth. From the perspective of listed leading companies, in recent years they have accumulated a wealth of capital operation and diversified management experience, and with the increasing demand for exits in the primary market, many quality consumer symbols have provided listed companies with good acquisition and integration opportunities.
Main line of mergers and acquisitions: industrial restructuring, with offline retail companies entering a new round of restructuring period.
Offline retail channel leaders still possess the advantages of concentrated commodity access and diverse consumer scenarios, along with a well-established supply chain capability. Under the current short-term operational pressure, there is hope to revitalize inefficient assets within the industry through mergers and acquisitions and achieve core business value enhancement, thereby improving long-term competitiveness. Traditional retail leaders like yonghui are actively learning from successful experiences and adjusting through external industry resources to address existing operational issues, with initial positive results.
Merger and acquisition restructuring main line two: external expansion, the diversified expansion path of brand-based enterprises.
For brand-based enterprises, further growth under pressure from capped traffic and demand requires supplementing the category matrix and channels, and establishing a platform-based development model. Relying on external mergers and acquisitions can help achieve scalable development of multiple brands and categories, catering to different consumer needs with distinctively positioned brands; it can also assist in channel expansion, including entry into overseas markets. According to Bain & Company statistics, the contribution rate of expansion through mergers and acquisitions to the overseas revenue of international companies has increased by an average of 27%.
Investment advice: As the industry enters a saturation era, we are overall bullish on driving sector leaders to achieve secondary growth in performance through prudent and reasonable merger and acquisition consolidation.
Retail channel integration: recommended to pay attention to regional leading offline retail players with high brand awareness and robust supply chain construction: zhejiang china commodities city group (600415.SH), chongqing department store (600729.SH), miniso (09896), shanghai bailian group (600827.SH), yonghui superstores (601933.SH), jiajiayue group (603708.SH), etc.
Brand external expansion: it is suggested to pay attention to leading companies in the beauty and personal care industry with strong brand power and excellent channel and R&D operations that will drive multi-brand growth through external measures in the future: proya cosmetics (603605.SH), lancy co.,ltd. (002612.SZ), guangdong marubi biotechnology (603983.SH), beitaini (300957.SZ), imeik technology development (300896.SZ), syoung group (300740.SZ), etc.
