

Core Viewpoint - The market is experiencing rapid style rotation, with a shift in risk appetite leading funds to move from high-positioned sectors to those with performance certainty and valuation safety margins [1] Market Performance - On August 26, the Shanghai Composite Index closed at 3868.38 points, down 0.39% - The liquor sector closed at 2410.43 points, slightly up by 0.05%, with 12 liquor stocks declining [1] Individual Stock Performance - Kweichow Moutai closed at 1481.61 CNY per share, down 0.59% - Wuliangye closed at 129.74 CNY per share, down 0.15% - Shanxi Fenjiu closed at 207.90 CNY per share, up 1.08% - Luzhou Laojiao closed at 140.83 CNY per share, up 1.32% - Yanghe Brewery closed at 74.42 CNY per share, up 0.20% [1] Valuation Insights - According to a report by Founder Securities, the liquor sector's price-to-earnings (P/E) ratio percentiles over the past 1 year, 2 years, and 5 years are 21.81%, 10.93%, and 4.37% respectively - Current valuations are at the bottom, and with policy recovery and fundamental improvement, the sector is expected to complete its bottoming process, leading to valuation reconfiguration and gradual performance recovery [1]