Core Insights - The 2024 EVA Top 99 report highlights the top A-share listed companies in terms of Economic Value Added (EVA), emphasizing the importance of high-quality development for micro-enterprises in achieving broader economic goals [2][3]. Research Purpose and Significance - The report aims to assess how micro-enterprises can achieve high-quality development, which is crucial for overall economic progress [2]. - Economic Value Added (EVA) is defined as net profit minus the cost of equity capital, indicating true shareholder value creation [2][3]. Methodology - The sample for the report includes A-share non-financial companies that have been listed for at least ten years [8]. - Companies must meet specific criteria, including having unqualified audit opinions for the last three years and being in normal operational status [9][10]. - The EVA performance is measured using the Net Asset Economic Value Added Return Rate (EVAOE), which reflects the long-term shareholder value creation [14][16]. 2024 EVA Top 99 Companies - The report lists the top companies based on their EVAOE, with notable entries including: - Chongqing Beer (EVAOE: 0.297) - Kweichow Moutai (EVAOE: 0.235) - Shanxi Fenjiu (EVAOE: 0.211) [7]. New Entrants and Exits - New companies entering the 2024 list include: - Yingjia Gongjiu - Morning Light Co. - Liba Co. [20]. - Companies that dropped off the list include: - Shuanghui Development - Rongjie Co. [21]. Industry Distribution - The report categorizes the companies by industry, with the pharmaceutical manufacturing sector having the highest representation (16 companies) [25]. - Other notable sectors include electrical machinery and equipment manufacturing (14 companies) and beverage manufacturing (13 companies) [25]. Ownership Structure - The report indicates a mix of state-owned and non-state-owned enterprises among the top companies, with 22 state-controlled firms and 72 non-state-controlled firms [27]. Regional Distribution - The majority of the top companies are located in eastern China, with a notable increase in representation from provinces like Jiangsu and Guangdong [35].

Core Viewpoint - The overall market showed a collective increase, while the liquor sector experienced a decline, indicating mixed performance within the industry [1] Market Performance - The three major indices collectively rose, with the Shanghai Composite Index reaching 4002.83 points, an increase of 0.37% [1] - The liquor sector closed at 2246.58 points, down 0.89%, with 19 liquor stocks declining [1] Individual Stock Performance - Kweichow Moutai closed at 1431.58 CNY per share, down 0.93% [1] - Wuliangye closed at 118.58 CNY per share, down 1.27% [1] - Shanxi Fenjiu closed at 186.00 CNY per share, down 0.69% [1] - Luzhou Laojiao closed at 129.30 CNY per share, down 0.91% [1] - Yanghe Brewery closed at 69.19 CNY per share, down 0.63% [1] Industry Outlook - Dongxing Securities noted that short-term price fluctuations do not affect the recovery process of the industry [1] - Leading companies, particularly Kweichow Moutai, are showing strong performance that can withstand economic cycles, with signs of bottoming out becoming more evident [1]

Investment Rating - The report maintains an "Outperform" rating for the liquor industry [5][6]. Core Viewpoints - The current market for the liquor sector shows divergence, with significant year-on-year performance declines expected for liquor companies in Q3 2025. However, both valuation and holdings are at low levels, and positive factors on both supply and demand sides are increasing [1][4]. - Historical analysis from 2013-2015 indicates strong similarities between the current cycle and previous ones, suggesting that buying opportunities may accelerate [1][4]. Summary by Sections Price and Performance Trends - Most companies confirmed their stock price bottoms between Q4 2013 and Q1 2014, with performance declines starting in Q3 2013. Despite the declining performance, stock prices showed moderate reactions, following the overall market uptrend [2][7]. - The stock price performance of individual companies remains closely tied to their fundamentals, with regional leaders like Gujing and Laobaigan showing smaller declines compared to the overall market [2][13]. Company Strategies - Companies are leveraging channels to amplify brand and product advantages during the adjustment phase. High-end liquor brands focus on maintaining brand strength, with Moutai shifting its focus to customer expansion [3][32]. - Regional leaders are retreating to core markets while enhancing their presence in lower-tier markets, with companies like Yanghe and Gujing focusing on channel cultivation [3][39]. Investment Recommendations - The report suggests a two-phase recovery path for industry valuations. The first phase is driven by demand recovery, with expectations for Moutai's PE ratio to recover from 20x to 25x, corresponding to a dividend yield of about 3% [4][17]. - The second phase anticipates a return to long-term confidence in liquor assets, with industry PE potentially reaching 30x by Q4 2026. Recommended stocks include Luzhou Laojiao, Moutai, and Shanxi Fenjiu, with a watch on Wuliangye and Yanghe for potential recovery [4][5].

Investment Rating - The report indicates a negative growth trend in the white liquor industry, with a recommendation for cautious investment due to the ongoing challenges and market adjustments [2][4][6]. Core Insights - The white liquor industry experienced its first decline in overall operating performance since 2015, with a decrease in total revenue and profit among 20 A-share listed companies [4][5]. - The leading companies, such as Guizhou Moutai, Wuliangye, and Shanxi Fenjiu, showed revenue growth, while the majority of other companies faced significant sales pressure, highlighting a trend of industry differentiation [2][9]. - The industry is currently facing an imbalance in supply and demand for mid-to-high-end products, with social inventory needing further clearance [2][13]. Summary by Sections Industry Performance - In the first half of 2025, the total revenue of 20 A-share listed companies in the white liquor sector reached 241.51 billion yuan, with a year-on-year decline of 0.86% [5][12]. - Excluding Guizhou Moutai, the remaining 19 companies saw a more pronounced decline, with total revenue dropping by 6.07% [5][10]. Market Dynamics - The report notes that the white liquor industry has entered a phase of "total decline, head and shoulder concentration" since 2017, with a gradual decrease in production and sales volume among large enterprises [9][15]. - The introduction of stricter policies, such as the revised regulations on waste reduction, has significantly impacted consumer behavior and sales in the second quarter of 2025 [6][15]. Future Outlook - Short-term challenges remain, with expectations of continued downward pressure on operating performance into the second half of 2025 and potentially into 2026 [12][14]. - Long-term trends suggest a potential contraction in the industry, but opportunities for product structure optimization and increased industry concentration may support the resilience of existing listed companies [15][16].

Investment Rating - The report maintains an "Outperform" rating for the liquor industry [5][6] Core Viewpoints - The current market for the liquor sector shows divergence, with significant year-on-year performance declines expected for Q3 2025, yet both valuation and holdings are at low levels, indicating potential positive changes in supply and demand dynamics [1][4] - Historical analysis from 2013-2015 suggests that the current cycle has strong similarities, indicating that buying opportunities may accelerate [1][4] - The report anticipates a two-phase recovery in industry valuations, with the first phase driven by demand recovery and the second phase contingent on improved supply-demand relationships and market confidence in long-term liquor assets [4][17] Summary by Sections Price and Performance Analysis - Most companies confirmed their stock price bottoms between Q4 2013 and Q1 2014, with performance declines starting in Q3 2013, while stock prices remained relatively stable [2][7] - The report highlights that stock price performance is closely linked to fundamental performance, with regional leaders showing less decline compared to the overall market [2][13] Company Strategies - Companies are leveraging channels to enhance brand and product advantages during the adjustment phase, with a focus on maintaining brand strength for high-end products [3][30] - Regional leaders are concentrating on core markets and enhancing distribution channels, while expansion-oriented companies are increasing their presence in mid-to-low-end products [3][30] Investment Recommendations - The report suggests that the industry is entering a layout phase, recommending investments in stable-performing companies with long-term growth potential, such as Luzhou Laojiao, Guizhou Moutai, and Shanxi Fenjiu, while also monitoring Wuliangye and Yanghe for potential recovery [4][5]

Core Viewpoint - Zhang Kun, a prominent fund manager at E Fund, has disclosed the top ten holdings of four funds as of Q3 2025, indicating a strategic shift in investment focus towards consumer and technology sectors, while also reflecting on the long-term growth potential of China's consumption market [1][9]. Fund Holdings Summary - The combined top ten holdings of Zhang Kun's four funds include Tencent Holdings, Alibaba-W, Kweichow Moutai, Luzhou Laojiao, Shanxi Fenjiu, Wuliangye, JD Health, Yum China, CNOOC, and Focus Media [1]. - The total market value of the top holdings is as follows: - Tencent Holdings: 56.18 billion - Alibaba-W: 56.16 billion - Kweichow Moutai: 51.36 billion - Luzhou Laojiao: 51.13 billion - Shanxi Fenjiu: 50.69 billion - Wuliangye: 50.64 billion - JD Health: 45.02 billion - Yum China: 28.69 billion - CNOOC: 27.60 billion - Focus Media: 26.44 billion [2]. Changes in Holdings - Compared to Q2 2025, the only change in the top ten holdings was the exit of SF Express, replaced by Focus Media [2]. - In Q3, Zhang Kun reduced his holdings in Tencent and Alibaba by 2.465 million shares and 17.392 million shares, respectively, likely due to price increases of 31% and 61% during the quarter [5]. - In the liquor sector, there was an increase in Kweichow Moutai by 48,100 shares, while reductions were made in Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye [6]. Sector Analysis - In the consumer sector, there were reductions in Luzhou Laojiao and Shanxi Fenjiu, but increases in Kweichow Moutai and Wuliangye, indicating a positive outlook on premium liquor [7]. - The new investments in Yum China and Focus Media reflect expectations of recovery in the restaurant and advertising sectors [7]. - In the technology sector, there were reductions in Tencent and Alibaba across all funds, while new positions were taken in Google-A and reductions in ASML and TSMC, indicating a shift towards more globally competitive tech giants [8]. Long-term Outlook - The team believes that China's consumption growth is likely to outpace GDP growth, supported by a low consumer spending ratio relative to GDP compared to other major economies [9]. - The potential for a unified market of 1.4 billion people offers significant scale advantages for product development and sales [9]. - The current low valuation levels provide a safety margin for investments in the domestic consumption market, which is expected to remain fertile ground for long-term investment [9].

Core Viewpoint - The Shanghai Composite Index rose to 4000 points, reflecting a 0.21% increase, while the liquor sector showed mixed performance with a slight decline of 0.09% in the afternoon session [1] Company Performance - Kweichow Moutai closed at 1447.00 CNY per share, up 0.46% - Wuliangye closed at 120.35 CNY per share, up 0.05% - Shanxi Fenjiu closed at 189.12 CNY per share, up 2.31% - Luzhou Laojiao closed at 131.16 CNY per share [1] Market Analysis - According to Huachuang Securities, the performance in different consumption scenarios varies, with business banquets showing weak demand, while mass consumption and wedding banquets remain relatively strong with a smaller decline in Q3 - There is an observed improvement in high-end gifting ahead of the festival season - Liquor companies are adopting a more pragmatic approach, accelerating adjustments to clear inventory and reduce channel pressure [1]

Core Viewpoint - The Shanghai Composite Index rose to 4000 points with a 0.21% increase, while the liquor sector showed mixed performance with a slight decline of 0.09% in the afternoon session, despite 18 liquor stocks experiencing gains [1] Company Performance - Kweichow Moutai closed at 1447.00 CNY per share, up 0.46% - Wuliangye closed at 120.35 CNY per share, up 0.05% - Shanxi Fenjiu closed at 189.12 CNY per share, up 2.31% - Luzhou Laojiao closed at 131.16 CNY per share, up 1.36% - Yanghe Brewery closed at 69.82 CNY per share, up 0.07% [1] Market Analysis - According to Huachuang Securities, the business banquet segment is performing weakly, while mass consumption and wedding banquet scenarios remain relatively strong with a smaller decline in Q3 - High-end gifting is showing improvement ahead of the holiday season [1] - Major liquor companies are adopting a more pragmatic approach, accelerating adjustments to reduce channel pressure, while also cutting investment and enhancing operational efficiency [1] Collection Progress - Leading liquor companies such as Moutai, Wuliangye, and Fenjiu have achieved over 80% collection progress - Regional liquor companies are performing adequately with most reaching around 70% - Mid-tier liquor companies are facing greater pressure [1]

Core Viewpoint - Zhang Kun, a prominent fund manager at E Fund, has demonstrated strong performance across his managed funds, focusing on domestic consumption and technology sectors while adjusting his portfolio in response to market conditions [1][2][14]. Fund Performance - As of September 30, 2025, all four funds managed by Zhang Kun outperformed their respective benchmarks, with a total managed scale of approximately 56.544 billion yuan [1]. - The E Fund Blue Chip Select Fund reported a net asset value of 36.413 billion yuan, with a net value growth rate of 16.37%, surpassing the benchmark return of 13.25% [3][8]. - The E Fund Quality Select Fund achieved a net value growth rate of 17.58%, outperforming its benchmark of 13.57% [8]. Portfolio Adjustments - In Q3 2025, Zhang Kun increased his focus on domestic consumption, adding positions in companies like Kweichow Moutai and Wuliangye, while reducing holdings in JD Health and other stocks [4][5]. - The E Fund Blue Chip Select Fund saw a significant net redemption of 2.078 billion shares, marking the second-highest redemption record since its inception [3]. - The E Fund Quality Select Fund saw changes in its top ten holdings, with notable increases in Kweichow Moutai and Wuliangye, while JD Health and other stocks were reduced [7][9]. Sector Focus - Zhang Kun emphasized the potential of China's domestic consumption market, predicting that the growth rate of Chinese consumption will exceed both GDP growth and global GDP growth in the long term [2][14][15]. - The portfolio adjustments reflect a strategic shift towards sectors with sustained growth potential, particularly in consumer goods and technology [14][16]. Geographic Allocation - There has been an increase in holdings in Hong Kong, Taiwan, and the U.S., while exposure to South Korean stocks has significantly decreased [2][12]. - The E Fund Asia Select Fund, the smallest among Zhang Kun's managed funds, has seen a rise in its holdings in major markets, with Google entering its top ten holdings for the first time [12][13]. Investment Philosophy - Zhang Kun maintains a long-term investment philosophy, focusing on companies with strong business models and competitive advantages, despite short-term market volatility [14][15][16]. - He believes that the current low valuation levels in the market provide a significant margin of safety for long-term investments in quality companies [16].

Core Points - The Shanghai Composite Index is currently at 3993.52 points, slightly below the half-year line with a change of -0.09% [1] - A total of 66 A-shares have surpassed the half-year line today, with notable stocks showing significant deviation rates [1] Group 1: Stock Performance - The stock with the highest deviation rate is Libang Instruments, with a deviation rate of 14.95% and a daily increase of 16.28% [1] - Tax Friend Co. and Founder Motor follow with deviation rates of 6.81% and 6.27%, respectively, both showing daily increases of 10.00% and 9.98% [1] - Other notable stocks include Cuihua Jewelry and Furuite Equipment, with deviation rates of 4.94% and 4.50% respectively [1] Group 2: Trading Volume and Market Activity - The total trading volume of A-shares today reached 10089.87 billion yuan [1] - The turnover rate for Tax Friend Co. is notably high at 46.64%, indicating strong trading activity [1] - Other stocks with significant turnover rates include Libang Instruments at 10.82% and Cuihua Jewelry at 8.21% [1]