(March 21): Chinese consumer giants dominate next week’s earnings after a survey showed consumers are feeling increasingly optimistic and Beijing outlined plans to revive consumption by boosting incomes.
Earnings reports are seen as potential catalysts after details from a closely watched consumption-focused press conference earlier underwhelmed investors.
Expectations are particularly high for Pop Mart International Group Ltd, whose blind box toys have become a global phenomenon, amid celebrity fanfare and strong overseas sales. Midea Group Co stands to benefit from China’s consumer trade-in measures. Haidilao International Holding Ltd and Nongfu Spring Co are also due.
Meanwhile, efforts to to support an economic recovery by issuing 500 billion yuan (US$69.1 billion or RM305.0 billion) in special sovereign bonds to boost capital at its biggest banks puts the outlook of Industrial & Commercial Bank of China Ltd (ICBC), China Construction Bank Corp (CCB), Agricultural Bank of China Ltd (AgBank) and Bank of China Ltd in focus. Chinese banks held their benchmark lending rates for a fifth straight month in the absence of more monetary easing.
Monday: BYD’s full-year revenue likely surged 27%, consensus showed. The carmaker’s recently revealed line-ups of electric vehicles which can charge nearly as fast as the time it takes to refuel a regular car is a “game changer”, Bloomberg Intelligence (BI) said. More affordable models could emerge soon in a boost for sales.
Tuesday: Haidilao International’s second-half revenue will likely be weighed down by lower contributions from its restaurant operations, consensus showed. The company’s table turnover rate is expected to be under pressure in the second half, due to a high base a year earlier and a sluggish catering market, CGS International said. Overall, its full-year revenue growth likely slowed to about 8%.
Wednesday: Pop Mart’s full-year earnings are expected to more than double on higher revenue contributions from its retail stores and online channels. Citi reckons that the company’s growing global footprint and recognition of its diverse character figurines should continue to underpin its solid growth momentum.
Thursday: No major earnings of note.
Friday: Midea should report 11% second-half profit growth as it continued to benefit from China’s home appliance trade-in programme. Analysts also cheered better-than-expected retail sales growth for the first two months of the year, seen as positive for companies like Midea in 2025.