Investment Rating - Industry Rating: Outperform the market (maintained rating) [6] Core Viewpoints - The liquor sector showed positive performance during the May Day holiday, with companies focusing on stability as they navigate a bottoming phase in 2025. The overall industry target is expected to decrease to single digits, indicating a cautious outlook [2][13] - The beer and beverage sectors benefited from higher-than-expected travel data during the May Day holiday, with leading companies like Uni-President and Nongfu Spring reporting significant profit increases [3][17] - The health supplement sector saw strong performance, with companies like Bailong Chuangyuan showing resilience due to excellent Q1 results and minimal tariff impacts. The sector is expected to benefit from cyclical recovery opportunities [4][21] Summary by Sections Market Performance Review - The food and beverage sector increased by 1.76% from May 2 to May 9, outperforming the Shanghai Composite Index, which rose by 1.92% [24] Liquor Sector Insights - The liquor sector rose by 2.34%, driven by positive sales during the May Day holiday and a reduction in performance pressure following Q1 earnings reports. The current PE-TTM for the liquor index is 19.97X, below the 10-year average of 14.12% [2][13] Beer and Beverage Sector Insights - The beer sector increased by 0.47%, with leading companies like Uni-President and Nongfu Spring showing strong growth. The travel data indicated a 6.4% year-on-year increase in domestic travel during the holiday [3][17] Health Supplements and Snacks - The health supplement sector saw a rise of 5.09%, with Bailong Chuangyuan leading the gains. The snack sector experienced a slight decline of 1.85%, attributed to previous high increases [4][21] Investment Recommendations - Recommended stocks include leading companies in various segments: for liquor, focus on Shanxi Fenjiu and Guizhou Moutai; for snacks, consider West Wheat Foods and Three Squirrels; for dairy, look at Yili and New Dairy [5][22][23]