CITIC Securities' 2026 social services sector investment strategy: Focus on changes in economic conditions, optimistic about leading companies realizing growth.

In 2025, the service industry consumption as a whole is showing a differentiated recovery, with core influencing variables including macroeconomic conditions, wealth effects, competition among different business models, and policy guidance. Looking ahead to 2026, on the demand side, the K-shaped recovery trend is expected to continue, while the low base effect of consumption leaders in the middle and high-end market segments will be evident, and the demand for going global will transition from pilot exploration to scalable replication. On the supply side, normalized supply innovation ensures emotional value premium, with policy guidance playing a positive boosting role, and AI empowerment improving efficiency and cost optimization. Three recommended strategies: firstly, companies in the gaming and premium beverage sector with high demand elasticity during the recovery; secondly, high-quality targets in the leisure travel sector; thirdly, leading companies in the cyclical industries with stable operations and growth potential.