KWEICHOW MOUTAI(SH:600519) Shanghai Aijian Securities·2025-08-19 02:48Investment Rating - The food and beverage industry is rated as "stronger than the market" [1] Core Viewpoints - The industry is currently experiencing a weak recovery in demand, particularly in the liquor sector, driven by policies aimed at expanding domestic demand and infrastructure projects [2] - The industry is at a historical low valuation, with the food and beverage sector's PE-TTM at 21.08x, and the liquor sector at 18.23x, both at the 17th percentile over the past 15 years [13][19] - Guizhou Moutai's performance in the first half of 2025 met expectations, with revenue of 91.094 billion yuan, a year-on-year increase of 9.16%, and net profit of 45.403 billion yuan, a year-on-year increase of 8.89% [22][19] - The introduction of a national childcare subsidy policy is expected to boost the consumption of dairy products [30][26] - The beverage sector, particularly Master Kong, is facing challenges due to price increases and competition, but its dividend yield remains attractive [28][26] Summary by Sections Industry Performance - The food and beverage industry rose by 0.48% in the week of August 11-15, underperforming the Shanghai Composite Index, which increased by 1.70% [6][7] - Among sub-sectors, the highest gains were seen in seasoning and fermentation products (+2.19%) and baked goods (+1.46%), while soft drinks saw the largest decline (-3.12%) [9][10] Liquor Sector - Guizhou Moutai's revenue from Moutai liquor reached 75.590 billion yuan in H1 2025, a year-on-year increase of 10.24% [22] - The company is expected to achieve a revenue growth target of around 9% for 2025, with a strong certainty of steady growth [22][19] Dairy Sector - The average price of fresh milk in major production areas was 3.02 yuan/kg as of August 7, 2025, with a slowing decline trend [30][26] - The new childcare subsidy policy is anticipated to increase the birth rate and subsequently boost dairy product consumption [30][26] Beverage Sector - Master Kong reported a revenue of 40.092 billion yuan in H1 2025, a year-on-year decrease of 2.7%, but net profit increased by 20.5% to 2.271 billion yuan [28][26] - The beverage segment's revenue was impacted by price increases and intensified competition from delivery platforms [28][26]