Daiwa has released a report stating that consumption performance during the Lunar New Year holiday was encouraging, with strong demand in dining and tourism. The firm recommends prioritizing stocks that benefit from catering and travel demand, with top picks including GUMING (01364), YUM CHINA (09987), NONGFU SPRING (09633), TINGYI (00322), CHINA RES BEER (00291), and Kweichow Moutai (600519.SH). The report noted initial signs of reflation in China's economy, primarily driven by service consumption, reflected in price increases and reduced promotional activity across dining, tourism, transportation, and accommodation sectors. Catering sales during the 2026 Lunar New Year period exceeded market expectations, with average daily revenue increasing 8.6% year-over-year in the first four days of the holiday, compared to a growth rate of just 4.1% during the same period in 2025. Since YUM CHINA indicated initial improvements in consumer confidence in November 2025, the pace of demand recovery has continued to accelerate. Daiwa continues to list GUMING and YUM CHINA as top picks in the catering sector and noted that if the recovery in dining broadens, alcohol consumption at restaurants may outperform market concerns. The firm is also optimistic about NONGFU SPRING and TINGYI, both seen as key beneficiaries of strong domestic tourism demand.