Huaxin Securities·2025-06-22 11:02Investment Rating - The report maintains a "Recommended" investment rating for the food and beverage industry [8]. Core Insights - The sentiment in the liquor sector has improved following a correction in public opinion regarding the regulation of extravagant dining, which had previously suppressed demand [5]. - The new tea beverage sector is expected to benefit from the booming delivery market and the upcoming peak season, with significant growth anticipated in store openings and sales [6]. - The report highlights the overall low valuation of the liquor sector, with many companies engaging in stock buybacks and increasing dividends, indicating potential for capital inflow as domestic demand policies are released [5]. Summary by Sections Industry News - Recent news includes a 40% year-on-year increase in liquor sales during the JD 618 shopping festival and a successful online sales event generating 32 million yuan [17]. - The report notes a 4.1% increase in the industrial added value of the liquor and tea industry in May [17]. Company News - Guizhou Moutai has appointed new vice presidents, while Wuliangye reported a 34.5% increase in sales in its marketing regions [17]. - The report mentions that the tea beverage company Cha Bai Dao has achieved nationwide supply chain coverage and plans to open 1,000 new stores by 2025 [6]. Key Company and Profit Forecasts - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for various companies, all rated as "Buy," including: - Luzhou Laojiao: EPS of 9.27 in 2025E, PE of 12.31 [10]. - Wuliangye: EPS of 8.67 in 2025E, PE of 13.79 [10]. - Guizhou Moutai: EPS of 75.23 in 2025E, PE of 18.99 [10]. Industry Performance - The food and beverage sector has underperformed compared to the Shanghai Composite Index over the past month, quarter, and year [3]. - The liquor sector's revenue for 2024 is projected at 796.4 billion yuan, reflecting a 5.3% year-on-year increase, despite a 7.72% decrease in production [36][36]. Market Trends - The seasoning industry is expected to grow significantly, with the market size projected to increase from 259.5 billion yuan in 2014 to 687.1 billion yuan in 2024, representing a CAGR of 10.23% [39]. - The report indicates a growing trend in the snack food market, with a market size increase from 0.82 trillion yuan in 2016 to 1.2 trillion yuan in 2022, with a CAGR of 6% [47].