Check out which consumer firms are looking to expand overseas

They are seeing long-term growth fundamentals in other Asian countries.

The consumer sector started the year right as FTSE Consumer Goods Index and FTSE Consumer Services Index spike 3.9% and 1.1%, respectively, according to OCBC Investment Research.

OCBC noted that consumer companies are looking beyond China and focusing on emerging markets for expansion plans against this backdrop of inexpensive valuations and sound long-term growth fundamentals for Asia.

For instance, Jumbo had entered into its first franchise agreement to bring its brand to Vietnam, and its first Jumbo Seafood outlet is expected to open in Ho Chi Minh City this year.

Meanwhile, QAF has also indicated expansion plans in the Philippines, including setting up of new bread manufacturing plants to cater to the growing demand for bread products in the Philippines. Quoting Euromonitor, OCBC said the group’s Gardenia remains a leading company in baked goods for the Philippines, holding a 13% market share in retail value terms vs. 10% for Goldilocks Bake Shop.

Meanwhile, OCBC pointed out that QAF, as well as Sheng Siong, has had stable dividends and a decent yield of 3-4%.