Citi: The Chinese consumer sector is optimistic about Mengniu, ANTA, HAIDILAO, and others

Citi published a report indicating that among the Chinese consumer sector covered by the bank, 37% of companies exceeded expectations in their full-year performance for 2025, 43% met expectations, and only 20% fell short. For the outlook in 2026, most companies provided specific guidance rather than general statements like "cautiously optimistic." However, investors' positive sentiment towards the sector has been disrupted by the Middle East conflict and concerns over cost inflation and macroeconomic uncertainty, leading to divergent views among investors.

The bank is optimistic about the recovery of downstream dairy products such as Mengniu (02319.HK), sports apparel like ANTA (02020.HK), the leisure dining ecosystem including HAIDILAO (06862.HK), China Resources Beer (00291.HK), Haitian Flavoring and Food (03288.HK), and tourism such as Atour (ATAT.US). If risk appetite exceeds expectations, the bank expects strong performance from POP MART (09992.HK), LI NING (02331.HK), Lao Pu Gold (06181.HK), China Duty Free Group (01880.HK), and Dongpeng Beverage (9980.HK)