KWEICHOW MOUTAI(SH:600519) Xiangcai Securities·2025-03-05 01:49Investment Rating - The report maintains a "Buy" rating for the food and beverage industry [3][37]. Core Insights - The food and beverage industry showed a positive performance with a 1.77% increase from February 24 to February 28, 2025, outperforming the Shanghai Composite Index by 3.99 percentage points [5][11]. - The report highlights a recovery in market expectations, particularly in the dairy sector, with prices beginning to rise [1][8]. - Investment opportunities are identified in sectors with high valuation elasticity such as condiments, dairy products, beer, and liquor, as well as in high-demand segments like snacks and soft drinks [8][37]. Summary by Sections Market Performance - The food and beverage sector outperformed major indices, with snack foods rising by 4.30%, meat products by 3.52%, and dairy products by 3.00% during the reporting period [5][11]. - The average price of fresh milk in major production areas was reported at 3.10 CNY/kg, a year-on-year decrease of 13.90% [6][26]. Alcohol Market Dynamics - The liquor market is expanding, with companies like Luzhou Laojiao and Guizhou Zhenjiu setting ambitious revenue and market capitalization goals [7][14]. - Moutai's pricing remained stable, with the wholesale price for its original product at 2230 CNY/bottle [20][28]. Investment Recommendations - The report suggests focusing on recovery opportunities in the restaurant chain sector and highlights the potential for valuation recovery in the food and beverage sector due to improving fundamentals and increased market attention [8][37]. - Two main investment themes are proposed: sectors with high valuation elasticity and those with strong demand [8][37].