KAIYUAN SECURITIES·2026-03-01 08:24Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The food and beverage industry is experiencing a recovery in sales during the Spring Festival, with structural differentiation observed. The demand for high-end liquor remains strong, particularly for brands like Moutai and Wuliangye, which have shown year-on-year sales growth. The market's resilience and channel confidence are being restored, with the price bottoming out due to continuous supply-side contraction. The current valuation of the food and beverage sector is low, with institutional holdings being relatively low, indicating high allocation value. Investment strategies suggest focusing on leading companies with strong brands and channel barriers in the liquor sector, while in the mass market, three core lines are recommended: the snack sector benefiting from channel changes, dairy and ranch sectors with potential profit elasticity, and the frozen and compound seasoning sectors linked to the recovery of the catering chain [4][11][12]. Summary by Sections Weekly Insights - The food and beverage index declined by 1.5% from February 23 to February 27, ranking 26th among 28 sectors, underperforming the CSI 300 by approximately 2.6 percentage points. The sub-sectors of prepared foods (+6.7%), beer (+2.6%), and health products (+1.2%) performed relatively well [11][13]. Market Performance - The food and beverage sector underperformed the broader market, with a 1.5% decline in the index. Notable individual stock performances included Sanquan Foods, Anjuke Foods, and Jinhwa Industrial showing significant gains, while Gujing Gong B, Dongpeng Beverage, and Gujing Gongjiu faced declines [11][13][17]. Upstream Data - Some upstream raw material prices have decreased. For instance, the price of whole milk powder in GDT auctions was $3,706 per ton, down 10.8% year-on-year. The price of fresh milk was 3.04 yuan per kilogram, down 2.3% year-on-year [15][18]. Liquor Industry Data - In mid-February, the national liquor price index fell by 0.07%. The wholesale price index for famous liquors increased by 7.26% year-on-year, indicating a stable demand for premium products [37]. Recommendations - Recommended stocks include Moutai, Shanxi Fenjiu, Ximai Foods, Weilong Delicious, and Ganyuan Foods. Moutai is focusing on sustainable development amidst shifting demand, while Shanxi Fenjiu is expected to see medium-term growth despite short-term pressures. Ximai Foods is expanding its channels, and Ganyuan Foods is anticipated to rebound after adjustments [6][40].