Haitong Securities International·2025-12-01 11:31Investment Rating - The investment rating for the essential consumer goods sector is "Outperform" for multiple companies including Kweichow Moutai, Wuliangye, and Yili [1] Core Insights - In November 2025, four out of eight monitored essential consumer sectors showed positive growth, while four experienced negative growth, with the growth sectors being condiments, frozen foods, soft drinks, and catering services [29] - The overall growth rates across all sectors have slowed compared to the previous month, attributed to macroeconomic conditions, structural industry challenges, and seasonal factors [29] Subsector Summaries Mid-to-High-End and Above Baijiu - Revenue for the mid-to-high-end and premium baijiu sector in November was RMB 24 billion, down 13.0% year-on-year, with cumulative revenue from January to November at RMB 349.2 billion, a decline of 6.2% [30] - The market is experiencing simultaneous declines in both volume and price, with a conservative consumer spending trend [30] Mass-Market and Below Baijiu - Revenue for the mass-market and lower-tier baijiu industry reached RMB 18.9 billion in November, marking a 3.3% year-on-year decline, with cumulative revenue from January to November totaling RMB 180.9 billion, down 8.5% [30] - The production of baijiu in October was 276,000 kiloliters, down 18.3% year-on-year, indicating a challenging market environment [30] Beer - The domestic beer industry generated revenue of RMB 9.9 billion in November, a 2.0% year-on-year decline, with cumulative revenue from January to November at RMB 162.6 billion, representing a 0.2% year-on-year increase [31] - Seasonal demand has decreased due to a nationwide temperature drop, leading to subdued overall demand [31] Condiments - The condiments sector reported revenue of RMB 418 billion in November, a year-on-year increase of 0.8%, with cumulative revenue from January to November at RMB 4,129 billion, up 1.3% [18] Frozen Foods - The frozen foods sector achieved revenue of RMB 81.6 billion in November, a year-on-year increase of 4.0%, with cumulative revenue from January to November at RMB 964 billion, up 2.2% [22] Soft Drinks - Revenue for the soft drinks sector was RMB 388 billion in November, a year-on-year increase of 2.1%, with cumulative revenue from January to November at RMB 6,583 billion, up 4.1% [24] Catering - The catering industry reported revenue of RMB 130.4 billion in November, a year-on-year increase of 0.3%, with cumulative revenue from January to November at RMB 1,607 billion, down 0.7% [26]