1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Bank Middle East Ltd,DIFC View HSBC Global Research at:https:/ The 20theditionof the EM Sentiment Surve

2、yClick to viewHesitant bulls of summer Weak demand and margin pressure continue;we expect that 2Q25 will be a weaker quarter for consumer names Affordability issues limit pricing power in the food sector;operating leverage to partly offset weaker growth in 2H25 No changes to ratings;we prefer Migros

3、 and CCI,both rated Buy;TPs adjusted for DO&CO,Hepsiburada,and Mavi Focus on growth and market share:Amidst pressure on consumer disposable income,the full year growth outlook for the Turkish consumer sector offers limited room for surprise.Food retailers like-for-like growth is slowing on traffic p

4、ressure,lower internal inflation,and a focus on promotions,while space expansion provides some flexibility.Margin pressure should gradually ease,as companies absorb the wage hike at the start of the year,with 2H25 looking better.We expect management to focus on balanced growth and continue increasin

5、g market shares given that competition remains rational.Migros should benefit from stronger growth from its omnichannel-driven business model,while for BIM we estimate lower internal inflation,limiting top-line growth,and normalisation in gross margins as well as higher depreciation and tax expenses

6、 weighing on profitability.Beverage names are likely to focus on product affordability in the domestic market(with tactical price increases),resulting in short-term pressure on margins.However,we expect volume recovery/growth in key international markets to improve revenue management in 2H25.There a