LNY Holiday Data Shows Robust Catering Demand
China's consumer sector showed encouraging signs of a rebound during the 2026 Lunar New Year holiday, driven by strong performance in catering and tourism. According to a report from Daiwa, catering sales during the period surpassed street consensus expectations. This uptick is part of a broader trend of initial reflation in the Chinese economy, motivated primarily by service consumption. The strong demand has led to rising prices and reduced promotional activities across the catering, tourism, and transportation sectors.
Daiwa Taps Yum China and Guming as Top Picks
In response to the positive data, Daiwa recommended investors prioritize stocks benefiting from the catering and tourism revival. The firm's top picks include GUMING (01364.HK), YUM CHINA (09987.HK), and NONGFU SPRING (09633.HK), alongside TINGYI (00322.HK), CHINA RES BEER (00291.HK), and KWEICHOW MOUTAI (600519.SH). Yum China had previously indicated in November 2025 that consumer confidence was showing initial signs of improvement, and Daiwa noted the pace of demand recovery has continued to accelerate since then.
While optimistic about the broader sector, the firm remains cautious on MIXUE GROUP (02097.HK), maintaining a "Neutral" rating due to what it described as weakened visibility in profit growth. Daiwa also highlighted NONGFU SPRING and TINGYI as key beneficiaries of strong domestic tourism demand. The report suggests that if the catering recovery expands, alcohol consumption at venues could also perform better than previously feared.
Edgen Stock·Feb 25 2026, 03:54