China consumer firms post strong results but analysts warn recovery may lag
Hong Kong-listed consumer firms report strong results but analysts say the gains reflect structural shifts rather than broad recovery
Major Chinese consumer stocks listed in Hong Kong rose immediately after reporting strong full-year earnings, but retreated on Wednesday. Analysts said the results did not point to a broad recovery in the consumer market but instead underscored structural divergence and new growth drivers in mainland China consumption.
Jeweller Laopu Gold posted stronger-than-expected results for 2025, with revenues of 27.3 billion yuan (US$4 billion) last year, a 221 per cent surge year on year, while net profit jumped 234.9 per cent to 5.03 billion yuan, its Monday results showed. Laopu Gold dipped 0.23 per cent on Wednesday to close at HK$647 after jumping 16.11 per cent on Tuesday.
Bubble tea chain Mixue Group posted better-than-expected annual results, with sales reaching 33.56 billion yuan, up 35.2 per cent year on year, while net profit rose 32.7 per cent to 5.88 billion yuan, its earnings showed on Tuesday. Mixue shares dropped 5.79 per cent on Wednesday to close at HK$322 after rising 5.95 per cent on Tuesday.
Some other Hong Kong-listed consumer stocks also fell. Pop Mart, which released annual results on Wednesday noon, fell 22.51 per cent on Wednesday to close at HK$168.30, following a 7.42 per cent gain on Tuesday, while sportswear maker Li Ning edged down 0.18 per cent on Wednesday to close at HK$21.96 after climbing 4.36 per cent on Tuesday.
“Against a moderate recovery in macro retail sales, this gap between strong individual stocks and a lukewarm overall market reflects the profound transformation under way in the consumer sector,” said Fu Yifu, a special researcher at Su Merchants Bank in Nanjing, Jiangsu province.
“Consumption has shifted profoundly from functional satisfaction to emotional resonance, which is the core driver of today’s consumer resilience.”