Meituan, Chow Tai Fook Earnings to Offer Clues on China Consumer Sentiment

(Bloomberg) — Meituan and Chow Tai Fook Jewellery Group Ltd.’s earnings should reveal how China’s consumer market is shaping up, with sentiment weighed down by a slow economic recovery, prolonged property woes and an unstable employment environment.

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The country’s retail sales grew at the strongest pace in eight months in October, boosted by Beijing’s recent efforts to boost consumption. Still, consumers remain cautious on spending as the government stimulus package hasn’t meaningfully improved consumers’ income yet, Boston Consulting Group said.

Meituan — among the last of China’s biggest tech companies to release results — is expected to have powered through the consumer malaise, “defying gravity with superior growth amid a weak economy,” Morgan Stanley said. The food-delivery platform benefited from local government consumption voucher programs, with the country’s vow to strengthen development of platform economy and increase policy support.

While Chow Tai Fook, which posts first-half earnings this week, may struggle to sustain fiscal second-half revenue at the previous year’s level after downsizing its store network in China, as the decline in jewelry sales probably slowed, Bloomberg Intelligence said.

Over in Malaysia, lenders Malayan Banking Bhd and CIMB Group Holdings Bhd are set to face continued funding-cost pressures as the central bank is likely to hold policy rates into next year. Maybank may have an edge over its competitors thanks to its high percentage of low-cost deposits, BI said.

Highlights to look out for:

Tuesday: Maybank (MAY MK) is expected to post slower net income growth because of margin pressure, BI analysts said. Loan growth is expected to be a bright spot, as evidenced by central bank data, and Maybank’s domestic consumer mortgage book is the fastest-growing among peers, they said.

Chow Tai Fook’s (1929 HK) earnings were likely dragged down by weak retail sentiment and high gold prices. The jeweler has said it expects fiscal first-half revenue to decrease 18% to 22%, which analysts from Citi and Jefferies said was in line with expectations.

Thursday: CIMB Group’s (CIMB MK) third-quarter net income probably fell 4.2%, estimates show. A steady net interest margin and healthy loan growth provided support, BI said. Its asset quality remains stable through lower credit costs, with UOB Kay Hian saying the Malaysian loans portfolio has seen improvements in consumer delinquency rates.

Axiata Group’s (AXIATA MK) third-quarter earnings may be weighed down by a stronger ringgit, Maybank analysts said, as at least 90% of its Ebitda comes from overseas operations. The XL Axiata unit in Indonesia, which brings in the biggest share of operating profit, reported nine-month net income growth of 32%. Its Bangladesh operation, which contributed about 20% of Ebitda in 2023, faces risks linked to floods and political unrest, Maybank added.
F&P Healthcare (FPH NZ) may post a 46% jump in first-half adjusted net income, driven by revenue contributions from its core products, estimates show. The company should also benefit from an ongoing new product innovation cycle in its hospital and obstructive sleep apnea businesses, which should underpin earnings growth into fiscal 2026 at least, Craigs Investment Partners said.

Friday: Meituan’s (3690 HK) third-quarter net income likely more than doubled, estimates show. Growth should be driven by its in-store, hotel and travel segment, while food delivery revenue remained solid with strong order growth. Look out for comments on its expansion in the Middle East and beyond.

(Updates throughout)