bullish
China A-Share Consumer Staples: An Analysis of the Opportunities Ahead
772 Views31 Oct 2022 10:03
Boomeranged on Fri, 13 Jun 2025 11:59
With the recent IPOs of Foshan Haitian Flavouring and Fujian Anjoy Foods (planned), we think the interest in China's consumer staples sector will heaten up. We recirculate this Smartkarma Original, published more than two years ago, to provide an overview of the sector and the key companies. This will add a background for studying these latest IPOs.
SUMMARY
- Chinese government will continue to boost the slowing domestic economy by supporting consumption. The A-share consumer staples sector, which is less volatile than discretionary, will be benefited.
- We see attractive stories for Shanxi Xinghuacun Fen Wine (600809 CH), Foshan Haitian Flavouring (603288 CH), Inner Mongolia Yili Industrial (600887 CH) and Fu Jian Anjoy Foods (603345 CH).
- While they are trading on high-end of peer multiples, their earnings quality, leadership status and product premiumisation provide good justifications for valuation. Also, all of them have solid financial position.
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Osbert Tang, CFA
HK/China Equity Long-Short
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