Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Insights - Short-term price fluctuations do not alter long-term value; new products from Ximai are building a second growth curve [5] - The food and beverage index declined by 1.9%, ranking 26th among 28 sectors, underperforming the CSI 300 by approximately 3.2 percentage points [13][15] - Moutai's recent price decline is attributed to increased shipments in Q4 and promotional activities on e-commerce platforms, indicating a temporary supply-demand adjustment rather than a fundamental change in brand strength [5][13] - The white liquor sector is currently at a dual bottom in valuation and expectations, with opportunities for strategic positioning as industry reforms deepen [5][13] Market Performance - The food and beverage sector underperformed the market, with a 1.9% decline, while sub-sectors like processed foods (+1.5%), beer (+1.2%), and soft drinks (+0.4%) showed relative strength [15][17] - Notable individual stock performances included Anji Food, Hai Xin Food, and Xi Wang Food showing gains, while Yantang Dairy, Ximai Food, and Richen Co. experienced declines [15][17] Upstream Data - Recent data indicates a decline in some upstream raw material prices, with whole milk powder auction prices down 15.6% year-on-year, and fresh milk prices down 3.2% year-on-year [18][19] - Pork prices have also seen significant declines, with a year-on-year drop of 24.1% [22][23] Company Focus - Ximai Food's new health-oriented powder products have performed well in initial sales, with plans for nationwide expansion starting in 2026 [6][14] - The company is also launching weight control products aimed at improving gut health and stabilizing blood sugar levels, indicating a strong growth trajectory in the health sector [6][14] Recommended Stocks - Recommended stocks include Guizhou Moutai, Shanxi Fenjiu, Ximai Food, Weilong Delicious, and Bai Run Co. [7] - Guizhou Moutai is expected to deepen its reform process and focus on sustainable development despite short-term demand pressures [7] - Shanxi Fenjiu is positioned for medium-term growth with a focus on product structure upgrades and national expansion [7]