China Post Securities·2025-08-18 09:45Investment Rating - The industry investment rating is "Outperform" [2] Core Viewpoints - The white liquor sector is entering a low base period for operations, and the dividend yield advantage is becoming evident. The performance of mass-market products is showing differentiation, with a focus on the potential of new business models [4][14] - The food and beverage sector has shown signs of recovery, with expectations for improved revenue and profit performance in the second half of 2025 due to a low base effect [4][16] Summary by Sections White Liquor Sector - The implementation of the "Regulations on Strict Economy and Opposition to Waste by Party and Government Agencies" has impacted normal consumption scenarios, but recent media corrections may help restore some consumption [4][14] - The overall sales volume in the white liquor industry has declined year-on-year, with high-end brands experiencing manageable declines while mid-range brands have seen more significant drops [4][14] - The stock price declines for major brands like Kweichow Moutai and Wuliangye have been substantial, with maximum declines of -47.48% and -65.98% respectively since 2021 [5][15] - The expected dividend yields for major brands in 2025 are competitive with other sectors, indicating a potential for investment [6][17] Mass-Market Products - Companies like Angel Yeast and Weilong have shown robust performance, with Angel Yeast reporting a revenue increase of 10.1% year-on-year in the first half of 2025 [18][29] - Weilong's new product lines have performed well, and the company is focusing on expanding its product categories and improving operational efficiency [18][20] - The mass-market segment is entering a reporting period, with companies like Anqi Yeast and Weilong showing positive growth trends [18][21] Industry Performance - The food and beverage sector index has shown a slight increase of +0.48% in the recent week, but it has underperformed compared to the CSI 300 index [8][21] - Year-to-date, the food and beverage sector has faced challenges, with a cumulative decline of -6.11%, indicating a lag in recovery compared to other sectors [21][22] - The highest performing sub-sectors this week included seasoning and fermentation products, with a notable increase of +2.19% [21][25]