GO
| HSI1 | 23,637.60 | -370.95 | 195.86B |
| HSCEI1 | 7,937.53 | -119.23 | 71.74B |
| Back Zoom + Zoom - Block Traded | |
|
2026-11-12 13:19:37 Goldman Sachs said in a research report that China's consumer trends in 3Q remained weak, with deleveraging and costs weighing on corporate margins. Growth in the third quarter was similar to or weaker than the already soft second quarter, and earnings generally missed expectations. National Bureau of Statistics retail sales growth improved slightly to 0.7% YoY in 3Q from 0.2% in 2Q, partly supported by earlier Mid-Autumn Festival demand shifting into September. However, weak consumer confidence, unfavorable weather and fading benefits from trade-in subsidy programs continued to weigh on demand. Amid mixed labor market performance and still-elevated savings rates, household cash flow remained under pressure. The broker noted that cost inflation has started to emerge, with packaging, metals and some food ingredients putting pressure on margins. However, hedging, procurement lock-ins and strategic inventories provided short-term buffers, making 2027 cost resets and pass-through capabilities key debate points. Pricing trends remained differentiated across categories. Shareholder returns continued to receive support despite weak earnings, with some companies increasing special dividends or share buybacks. Overseas performance was mixed. Product-driven durable goods continued to outperform on penetration and market share gains. Apparel and footwear OEM orders were better than expected, though some reflected front-loaded demand. Pet food was pressured by orders/pricing as well as forex and tariff pressures. Momentum in premium and luxury goods weakened, with China becoming a major drag on the global luxury market. The broker updated its sector preferences and continued to favor catering, including freshly made beverages, food and beverage value retail, dairy products, condiments, snack foods and leading white home appliance makers. It turned Neutral on projectors and apparel and footwear OEMs. Furniture, discretionary small kitchen appliances, non-ultra-premium baijiu, sports retail and pet food remained its least favored sectors. Its Buy list includes YUM CHINA (09987.HK) (YUMC.US) and GUMING (01364.HK), both of which are on the Conviction List Buy list, as well as KWEICHOW MOUTAI (600519.SH), MIDEA GROUP (00300.HK) (000333.SZ), ANTA SPORTS (02020.HK), CHOW TAI FOOK (01929.HK), Luckin Coffee Inc. (LKNCY.US), BUSYMING (01768.HK), MENGNIU DAIRY (02319.HK), ANKER (00668.HK) (300866.SZ), LI NING (02331.HK), WANCHEN GROUP (300972.SZ), TINGYI (00322.HK), ROBOROCK (688169.SH), MAO GEPING (01318.HK), WL DELICIOUS (09985.HK), YIHAI INTL (01579.HK) and CHACHA FOOD (002557.SZ). (da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |