Yamato: Mainland Lunar New Year holiday spending performance is encouraging. Recommended stocks include GUMING (01364).

Yamato released a research report stating that the performance of consumer spending during the Lunar New Year holiday is encouraging, with strong demand for dining and tourism. It is recommended to prioritize stocks benefiting from dining and tourism demand, with top choices being GUMING (01364), YUM CHINA (09987), NONGFU SPRING (09633), TINGYI (00322), CHINA RES BEER (00291), and Kweichow Moutai (600519.SH). The report points out that preliminary signs of reflation have appeared in the Chinese economy, driven mainly by service consumption, reflected in the price increases and reduction in promotional activities in the dining, tourism, transportation, and accommodation sectors. During the Lunar New Year period in 2026, dining sales performed better than market expectations, with average daily revenue increasing by 8.6% year-on-year during the first four days of the festival, compared to just 4.1% in the same period in 2025. Since YUM CHINA stated in November 2025 that consumer confidence was beginning to show signs of improvement, the pace of demand recovery has continued to accelerate. The bank continues to list GUMING and YUM CHINA as preferred stocks in the dining industry, and points out that if the scope of dining recovery expands, the performance of alcohol consumption in dining establishments may surpass market concerns. It also sees positive prospects for NONGFU SPRING and Master Kong, both of which will be key beneficiaries of strong domestic tourism demand.