Retail sector – In-depth – [NONRATED] – It’s time for a sprint

In 1Q24, we see that consumers’ confidence reached the highest level of 78% in the last 5 quarters. Together with a more bustling production activity (especially in 2Q24 with IIP reached 8.9% yoy in May 24), we think that the confidence index of consumers has approached a normal level (about 82%) in 2Q24. Hence, with a brighter economic outlook in 2H24, we think consumer spending would see a stronger improvement thereby peaking the recovery path of companies in the consumer sector.