"Big Banks" JP Morgan: The top picks for consumer stocks in the Year of the Horse are LAOPU GOLD, GUMING, MNSO, YUM China, and POP MART

JP Morgan's report indicates that the five major investment themes for China's consumer sector in 2026 are: (1) terminal demand remains moderate, with upward space for stimulus policies; (2) price deflation and competition accelerate industry consolidation; (3) younger demographics focus on differentiated design, experience, and social value; (4) overseas expansion to offset domestic growth weakness; (5) population aging brings challenges and opportunities.

Regarding the compound annual growth rate of sector sales from 2025 to 2030, JP Morgan believes that intellectual property, beverages, fast food restaurants, sportswear, and small home appliances will lead the way, while large home appliances, dairy products and infant formula, textiles, clothing, and liquor will be at the bottom.

JP Morgan's preferred buy targets are: LAOPU GOLD (06181.HK) (gold prices, differentiated design, and expansion potential), Luckin Coffee (LKNCY.US) (consumer-centric vision, market share increase, and digitalization), GUMING (01364.HK) (regional diversification, supply chain, and new products), Miniso (09896.HK) (strong products, experience-driven, and store expansion), YUM China (YUMC.US) (strong performance of KFC and Pizza Hut and good shareholder returns), and POP MART (09992.HK) (buyers overly pessimistic, rapid growth of non-Labubu IP, attractive valuation). JP Morgan recommends avoiding the following targets: Budweiser APAC (01876.HK) and Yanghe Brewery (002304.SZ)