06690 Overview

Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with notable gains for ANTA SPORTS (+2.365%) and HAIDILAO (+5.822%), while LI NING (-1.875%) and SANDS CHINA LTD (-1.271%) experienced declines.

Short Selling Data: Short selling activity varied across stocks, with LI NING having the highest ratio at 23.224%, while TSINGTAO BREW reported the lowest at 1.075%.

Investment Ratings: Most stocks listed received a "Buy" rating, except for LI NING, which is rated as "Hold," indicating a generally positive outlook for the majority of the stocks.

Market Insights: Citi's estimate for Macau's February gross gaming revenue (GGR) is projected at MOP20 billion, reflecting a 1% year-over-year increase, suggesting a stable gaming market.

Revenue Growth Outlook: HAIER SMARTHOME is projected to experience slow revenue growth in China, expected to be in the low single digits by 2026, as the impact of the home appliance trade-in policy wanes.

Gross Margin Expansion: Despite the slowing revenue growth, CLSA remains optimistic about HAIER SMARTHOME's domestic market gross margin expansion due to product model streamlining and improved channel efficiency.

Target Price Increase: CLSA has raised its target prices for HAIER SMARTHOME's A-/H-shares from RMB32/$30 to RMB34/$32, maintaining an Outperform rating based on strong overseas demand recovery.

Short Selling Data: As of February 16, 2026, HAIER SMARTHOME has reported short selling of $9.48 million, with a short selling ratio of 13.994%.

Top 5 Strongest Stocks: The strongest stocks in the HSCEI for 2025 include CHINAHONGQIAO (+177.4%), ZIJIN MINING (+152.2%), SMIC (+124.7%), POP MART (+109.4%), and INNOVENT BIO (+108.3%), with varying short selling ratios.

Top 5 Weakest Stocks: The weakest stocks in the HSCEI for 2025 are MEITUAN-W (-31.9%), LI AUTO-W (-31%), JD-SW (-17.9%), MENGNIU DAIRY (-15.1%), and HAIER SMARTHOME (-11.7%), also showing different short selling ratios.

Market Performance: The HSCEI index ended 2025 with a gain of 1,623 points, representing a 22.3% increase, closing at 8,913.

JD-SW Target Price Adjustment: HSBC Research has reduced the target price for JD-SW to $144 due to weaker-than-expected sales in the home appliance sector.

Retail Sales Decline: China's November appliance retail sales saw a YoY decline of 19%, worsening from a 15% drop in October, influenced by the early Double 11 event and high base effects.

Factory Shipments Drop: Domestic factory shipments of air conditioners experienced a significant YoY decrease of 40%, indicating ongoing challenges in the appliance sector.

Future Outlook: Goldman Sachs anticipates continued growth pressure in December due to high base effects, but expects potential improvement in 2026 with the continuation of the consumer good trade-in policy.

Stock Ratings: Goldman Sachs maintains a bullish outlook on MIDEA GROUP and HISENSE HA, both receiving Buy ratings, while also providing target prices for these stocks.

CMBI's Rating and Outlook: CMBI has assigned an Equalweight rating to China's discretionary consumption sector for 2026, predicting retail sales growth of about 3.5%, influenced by various economic headwinds and a cautious outlook.

Positive Factors and Stock Performance: Despite challenges, factors like the delayed Spring Festival and a recovering real estate sector may support stock prices, with expectations of pressure in the first half of 2026 and potential rebounds in the second half.

Investment Preferences: CMBI categorizes investments into survival, compensatory, and hedging/defensive consumption, recommending companies in these areas, such as LEPU BIO-B and YUM CHINA, all rated as Buy.

Large-Scale Consumption Outlook: The broker is less optimistic about large-scale consumption sectors, although favorable market conditions could enhance their performance, with companies like HAIER SMARTHOME and MIDEA GROUP also rated as Buy.

Implementation Plan for Consumer Goods: Six Chinese ministries have launched a plan to enhance the alignment of supply and demand in consumer goods, aiming to boost consumption amid pressures from insufficient purchasing power.

Government Subsidies: The Chinese government is allocating significant funds for trade-ins of old consumer goods, with RMB150 billion in 2024 and RMB300 billion in 2025, to stimulate short-term demand through national subsidies.

Retail Sales Growth: In October 2025, total retail sales of consumer goods increased by 2.9% year-on-year, although the growth rate showed a slight decline compared to the previous month, indicating ongoing challenges in the consumer market.

Stock Recommendations: China Galaxy Securities has recommended various stocks across sectors, including GUMING and DAMAI ENT in social services, ANTA SPORTS and XTEP INT'L in apparel, and TCL ELECTRONICS in technology, reflecting a focus on the new consumer track.