Core Viewpoint - The report from China Merchants Securities indicates that the liquor sector is undervalued and offers both defensive and offensive opportunities, while the food sector is poised for upward trends and high growth potential [1][2]. Liquor Sector - High-end liquor demand remains stable, with companies focusing on controlling supply to maintain prices, leading to a robust performance in Q1 [3]. - Moutai's price remains stable, with expectations of double-digit growth in Q1, while Wuliangye is projected to see slight growth [3]. - The performance of mid-range liquor companies is mixed, with some actively reducing market burdens [3]. - Regional brands continue to perform strongly, with competition intensifying in certain markets [3]. Food Sector - Overall demand in the food sector is stabilizing, with retail sales growth improving [4]. - The dairy sector is expected to see improved demand, while the seasoning and snack sectors continue to exhibit high growth [4][5]. - The seasoning sector is experiencing a recovery, although some companies face pressure due to high base effects from the previous year [6][7]. - The beer sector is adopting inventory reduction strategies, with demand expected to improve in the coming year [8]. Snack Foods - The snack food sector is performing steadily, with attention on single product growth and new channel opportunities [9]. - The demand for ready-to-eat foods is weak, with some companies facing pressure on sales and profits [10].