Major Bank Ratings | CLSA: Mainland Consumption Remained Positive During Spring Festival Holiday, Samsonite and Anta Among Top Picks

Glonghui, February 24th｜According to a research report published by Lyon, data as of yesterday (23rd) shows that overall consumption in Mainland China remained positive during the Spring Festival holiday, with strong enthusiasm for travel. In terms of cross-border tourism, the National Immigration Administration estimates that the average daily cross-border passenger flow increased by about 14% year-on-year. Consumption at Hainan duty-free shops remained resilient due to stronger promotional activities and policy-driven incremental demand, but this has largely been reflected in the share price of China Tourism Group Duty Free Corporation. However, box office performance was weak, hitting the lowest record in eight years. In addition, Lyon’s channel survey shows that gold jewelry sales are still under pressure due to gold price fluctuations, while some luxury brands have performed strongly since the beginning of the year. The bank believes that the Spring Festival data favors the strong travel and tourism sectors, and high-end consumption has performed well, which will benefit Lyon’s top picks including: Samsonite, French luxury giant LVMH, Cartier’s parent company Richemont, and Anta Sports, which is related to domestic demand.