Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The low valuation of the liquor sector presents layout opportunities, while new consumption valuations are returning to rational levels. The food and beverage index increased by 0.7% from July 21 to July 25, ranking 23rd among 28 sectors, underperforming the CSI 300 by approximately 0.9 percentage points. The sub-sectors of processed food (+2.0%), health products (+1.9%), and beer (+1.1%) performed relatively well [3][11][12]. Summary by Sections Weekly Insights - The liquor sector has shown a rebound, primarily driven by trading factors. In a volatile market with frequent rotation of hot sectors, the liquor sector has experienced a notable rebound, with some leading liquor companies seeing stock price increases of over 10%. This rebound is attributed to funds seeking certainty in assets amid a slowing economic recovery and high uncertainty in some industries. Liquor, as a low-valuation and high-dividend traditional defensive sector, has attracted funds [3][11]. Market Performance - The food and beverage index's performance was below the market average, with a 0.7% increase, ranking 23rd out of 28 sectors. The processed food, health products, and beer sectors outperformed, while individual stocks such as ST Xifa, Huang Shang Huang, and Jia Bi You saw significant gains, whereas companies like Huang Shi Group, Xi Mai Food, and Liang Pin Pu Zi faced declines [10][13]. Upstream Data - Recent data indicates a decline in some upstream raw material prices. For instance, the price of fresh milk was 3.0 yuan per kilogram, down 5.9% year-on-year, while the price of pork was 20.7 yuan per kilogram, down 17.5% year-on-year. The price of full-fat milk powder increased by 25.0% year-on-year [20][25][22]. Liquor Industry News - The national liquor price index remained stable, with the overall price index at 100.00. The premium liquor price index increased by 10.38%, indicating a positive trend in the premium segment [40]. Recommended Portfolio - The report recommends focusing on low-valuation liquor stocks such as Guizhou Moutai, Shanxi Fenjiu, and Ximai Food, as well as companies like Wancheng Group and Bairun Co. These companies are expected to perform well due to their strong market positions and growth potential [5][47].