China Consumer: 10 big-cap China consumer stocks with attractive valuation

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China Consumer: 10 big-cap China consumer stocks with attractive valuation

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02 Jul 2026 08:25:42 ET │ 19 pages

China Consumer

10 big-cap China consumer stocks with attractive valuation

CITI'S TAKE

Xiaopo Wei, CFA AC

China consumer sector has underperformed broad market indices in YTD, +852-2501-2472

given generally weak market sentiments, concerns on earning downside xiaopo.wei@citi.com

revision and investors’ sector rotation. We have screened our China

consumer coverage universe to identify over-sold big-cap consumer names Tiffany Feng AC

with attractive valuations. Based on a market cap of bigger than ~US$5bn, +852-2501-2759

a listing history longer than 5 years (without recent restructuring/M&As) tiffany.feng@citi.com

and 26E trading P/E below 13x, we have identified 10 stocks (Fig 1): Midea,

Anta, Li Ning, CTF, Mengniu, Haidilao, Tsingtao, Bosideng, CR Beer, WH Lydia Ling AC

Group. They are trading at 9-12x one-year fwd P/E, most of which are close +852-2501-2475

to their trough of 3-year historical range (Fig 3-14). Even assuming 20% lydia.w.ling@citi.com

earning downside, these stocks are currently trading at 11-14x of one-year

fwd PE (Fig 2). The 10 stocks include Citi’s China consumer sector Top Buys: Vincent Young AC

Mengniu & WH Group in staples and Anta & Midea in discretionary. +852-2501-2738

vincent.young@citi.com

Latest China consumer sector notes by Citi Consumer Research: Brian Cho

+852-2501-2712

n China Sportswear: Nike’s 4QFY26 narratives: Positive for Topsports, neutral to

brian.cho@citi.com

positive for Anta and Li Ning on July 1

n China Home Appliance: To ride on a multi-year AC penetration up-cycle in

Europe on Jun 29

n China Sportswear: Stock implications on three scenarios of Nike China’s online

strategy on Jun 29