0456 GMT - The consumer market in China softened further in 2H of 2024, with weaker growth in retail sales and lingering deflation, HSBC Global Research analysts say. Duty-free businesses face the highest earnings risk this year, followed by hotel and catering, sportswear, staples, and appliances, say Lina Yan and Yimin Wang in a note. Appliances have the lowest risk, with sales supported by government subsidies. Under staples, the oversupply in the raw milk industry may linger on the risk of a weakening demand for liquid milk, they say. However, there could be growth opportunities in the beverage sector from higher penetration. By companies, HSBC prefers Giant Biogene for growth, Anta for its resilient earnings, Yum China for shareholder returns and CR Beverage for its attractive valuation versus its earnings growth profile. (monica.gupta@wsj.com)
(END) Dow Jones Newswires
February 04, 2025 23:56 ET (04:56 GMT)
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