1、 Watchlist the stock on Insights Direct to receive prompt updates ed-JS/sa-CS/AH Tariff hikes:domestic brands see resilience SinoSino-US trade tensions disrupt crossUS trade tensions disrupt cross-border flows,with ultraborder flows,with ultra-high high tariffs of 125%/145%being imposed on US/China

2、exports.Our tariffs of 125%/145%being imposed on US/China exports.Our sensitivity analysis flags earnings risks,including China home sensitivity analysis flags earnings risks,including China home appliance plays(3appliance plays(3-8%),AFT exporters(double8%),AFT exporters(double-digits),and F&Bs dig

3、its),and F&Bs such as animal protein(3such as animal protein(3-16%)and pet foods(216%)and pet foods(2-11%).11%).We stay broadly positive on companies that derive most returns We stay broadly positive on companies that derive most returns from China domestic market,especially given ongoing government

4、 from China domestic market,especially given ongoing government stimulus to drive consumption.Our preference include:(i)Chinastimulus to drive consumption.Our preference include:(i)China-based downstream operators like based downstream operators like AntaAnta,China MengniuChina Mengniu,CR BeerCR Bee

5、r and and YUM ChinaYUM China;and(ii)solid yield plays such as;and(ii)solid yield plays such as WH GroupWH Group and and UPCUPC that also see sound fundamentals.that also see sound fundamentals.(iii)(iii)With potentialWith potentials s for renewed USfor renewed US-China trade talks anChina trade talk

6、s and possible d possible improvementimprovements s in global trade terms,should positive progress be in global trade terms,should positive progress be achieved,AFT manufacturers achieved,AFT manufacturers likelike ShenzhouShenzhou/StellaStella might regain might regain momentum given their 7%/15%sh