Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report suggests that the performance and valuation of the industry are approaching a double bottom, recommending to strengthen positions during the bottom cycle [3][11] - The food and beverage index increased by 0.9% from October 13 to October 17, outperforming the CSI 300 by approximately 3.1 percentage points [11][12] - Short-term demand for liquor is nearing a bottom, with business demand under pressure and slight improvements in terminal consumption [3][11] - The report emphasizes the need to observe macroeconomic trends for long-term industry outlook, with expectations of a more gradual recovery slope [3][11] Summary by Sections 1. Weekly Insights - The report indicates a double bottom in performance and valuation, suggesting to strengthen positions during the bottom cycle [3][11] - The food and beverage index outperformed the market, ranking third among primary sub-industries [11][12] 2. Market Performance - The food and beverage index rose by 0.9%, with other liquor categories, health products, and liquor showing relative strength [12][13] - Notable individual stock performances included Kuaijishan, Miaokelando, and Guifaxiang leading in gains [12][13] 3. Upstream Data - Some upstream raw material prices have decreased, with full-fat milk auction prices showing a year-on-year increase of 4.0% [17] - Domestic fresh milk prices decreased by 2.9% year-on-year [17] 4. Liquor Industry News - Moutai 1935 saw significant year-on-year sales growth in September, indicating market resilience [40] - The report highlights the importance of observing the pricing changes of Moutai as a key internal factor [3][11] 5. Recommended Portfolio - Recommended stocks include Guizhou Moutai, Shanxi Fenjiu, Ximai Food, Weilong Delicious, and Bairun Shares, with each having specific growth potential and market strategies [4]