Jinwu Financial News | Dining stocks are making a strong move again. As of the time of writing, DPC DASH (01405) is up 8.25%, Helen's (09869) is up 4.76%, JIUMAOJIU (09922) is up 2.83%, HAIDILAO (06862) is up 2%, and YUM CHINA (09987) is up 1.15%.
On the news front, GTJA's Chief Analyst Chen Ximiao stated that by 2025, the sensitivity of the Hong Kong stock market to external shocks is expected to decrease, and more emphasis should be placed on the focus on its own logic. For the Hong Kong stock market trends in 2025, a primarily N-shaped fluctuation upward pattern is anticipated, with plenty of elastic opportunities during the period. In 2025, it is still necessary to actively seek structure, mainly focusing on a barbell strategy that shifts weight to both ends, while paying more attention to the rhythm of configuration and the repair opportunities of certain domestic consumption goods.
CITIC SEC Research Reports believe that since 2023, domestic Consumer demand has continued to be weak, and the Dining Industry prices have entered a downward channel. At this point, how will Chinese food companies perform? Japanese food companies' experiences may provide some insights. Although the differences in macroeconomic conditions and national circumstances mean that China will not simply replicate Japan's Dining price wars and their impacts, there are structural similarities in the Dining competition between China's first-tier cities and Japan. The Research Reports suggest that changes in restaurant supply and CPI performance can serve as leading Indicators for determining when the current price war will end, while potential policies such as consumer vouchers are expected to stimulate Dining demand and create a temporary turning point. Two main lines are recommended: 1) Mature Dining enterprises should focus on same-store sales and valuation improvements brought by the rebound in CPI, while those enterprises that previously saw significant declines in same-store sales would have greater performance and valuation recovery elasticity. 2) Growing Dining enterprises should focus more on revenue growth and the pace of profit release.
