Consumer: 2018sector outlook – positive on consumption upgrade and rising industryconcentration    We have a positive view on consumption upgrade driven by income growth, and we expect domesticretail sales to demonstrate resilience with mild growth; furthermore, sub-sector leaders will benefitfrom rising industry concentration. While China’s economic growth will give rise to higher vehicledemand, 1Q18auto sales volume might be affected by the withdrawal of car purchasing subsidies.We expect PV sales volume growth of 4% in 2018. Amid increasing education spending by Chinesehouseholds, a short supply of higher education resources has resulted in strength in the K12tutoringspace. Lastly, we expect domestic tourism revenue and number of trips to maintain growth of ~10%.    Brilliance China (1114HK, Buy): Strong 9M17earnings growth, despite 3Q17slowdown    BMW Brilliance has seen strong sales growth this year, mainly supported by the sharp growth of theX1SUV (up 88.3% YoY) and considerable growth for the 3Series (up 30.3% YoY) during 9M17.Although 5Series growth was hindered by monthly sales volatility in 2Q17, the model rebounded inSept, and should rebound further in 4Q17. Continued sales growth for the 3Series and X1, and theaddition of the 1Series should also boost overall sales growth. Looking ahead, the company willlaunch the competitive X3/X2SUVs in 2018/19. Maintain Buy and TP of HK$25.75.

声明：如本站内容不慎侵犯了您的权益，请联系邮箱：wangshiyuan@epins.cn 我们将迅速删除。