Morgan Stanley: Expects investors to refocus on white goods before earnings season and holds an optimistic attitude towards the sportswear industry

According to Zhitong Finance APP, Morgan Stanley released a research report stating that investors are expected to refocus on white goods before the earnings season, as their profit growth is resilient, retail sales will gradually improve as the air conditioning peak season approaches, and dividends may increase. The firm remains optimistic about annual jewelry sales due to a low base. The firm prefers GREE (000651.SZ), ROBAM (002508.SZ), and Roborock (688169.SH). The firm is optimistic about POP MART (09992)'s global expansion, especially its performance in the U.S. market this year, and holds a positive outlook on the sportswear industry, as demand has remained stable so far this year, and inventory destocking is expected to end in the first half of 2025. Morgan Stanley indicated that from March 10 to 14, it conducted a China market promotion tour in Shanghai, Beijing, Guangzhou, and Shenzhen. The main conclusions are as follows: (1) Mainland investors are becoming more optimistic as signs of consumer recovery emerge, such as better-than-expected second-hand housing sales and stable prices in first-tier cities, as well as attractive valuations in some sub-industries; (2) "New consumption" is more favored by investors, including IP retail, jewelry, and freshly made beverages, receiving stronger attention compared to "old consumption" (such as home appliances, furniture, and sportswear); (3) Positioning: Various investors have shown high interest in recently listed "new consumption" stocks, expecting these stocks to rise in price after being included in the Hong Kong Stock Connect. Insurance investors are interested in home appliances from a dividend yield perspective while also being optimistic about their robust profit growth. Jewelry and gold and silver retail sales achieved a year-on-year growth of 5.4% from January to February, following a period of negative growth since April, despite rising gold prices. Morgan Stanley believes this indicates that consumers are adapting to high prices, and the firm remains optimistic about annual jewelry sales due to a low base. However, Morgan Stanley believes the market has fully reflected the strong sales momentum of Lao Pu Gold (06181) so far this year