CMS·2025-07-13 15:36Group 1: Core Views - The report suggests that the food and beverage industry is expected to see a valuation recovery as market sentiment improves, with a focus on low-priced leading companies in the liquor sector and structural opportunities in the food sector [2][7][10]. Group 2: Liquor Sector - The liquor sector is experiencing a phase of demand decline due to seasonal factors and regulatory impacts, leading to pressure on high-end liquor prices, while mass consumption remains stable [7][13]. - Major companies like Moutai are expected to maintain their performance due to strong brand positioning, while others are entering an adjustment phase, with varying adjustment speeds among companies [7][14]. - Q2 performance forecasts for major liquor companies indicate a range of revenue and profit changes, with Moutai expected to see a 9% increase in both revenue and profit [14][15][16]. Group 3: Food Sector - The food sector shows signs of recovery, with segments like beverages, snacks, and pet food experiencing upward trends, while beer and restaurant supply chains face structural challenges [21][24]. - The beverage industry remains vibrant with new product launches and a clear trend towards reduced sugar options, while competition intensifies [24][30]. - Dairy products are seeing mixed performance, with some segments like low-temperature dairy and cheese growing, while others face challenges [24][33]. Group 4: Investment Recommendations - The report recommends focusing on leading liquor companies with a safety margin for investment, as well as food companies that are expected to exceed mid-year performance expectations [10][28]. - Specific companies highlighted for potential investment include Nongfu Spring, Uni-President China, and Tianwei Foods, among others [10][28].