NOMURA：Consumer-related ASIA PACIFIC

01.18 (54页) pdf

We view continuing inflation as the key theme for the Asian consumer sector. Our analysis shows that retail and media have the pricing power to pass on their increased costs, while China F&B stocks have such high volume growth that margin pressure is barely felt. But overall consumer valuations have risen and, though media is relatively inexpensive and broadline retail is on a par with other consumer sectors, China F&B stocks are up sharply and we see little remaining upside. Accordingly, within retail we are positive on Shinsegae (we raise our fair value and rating)

Contents
Best buys — China and retail 3
Top picks — retail, media and selected value in China F&B 4
Enjoy the sales: prices are going up 6
So is this in the price then? 8
Looking for “gross” inflatables 11
Is country explaining more than sector now? 13
What if we strip out China's performance? 14
So what does China look like on its own? 15
It's not just food that's going up in price… 16
China not as expensive as you might think 17
In the price — ex-China 18
Company profile 19
Astro All Asia 19
BAT (Malaysia) 23
China Mengniu Dairy 26
China Resources Enterprise 30
Lotte Shopping 34
Shinsegae 38
Television Broadcasts 42