Core Viewpoint - The food and beverage sector is experiencing a strong upward trend, with significant gains in leading liquor brands and consumer goods, indicating a potential recovery in the industry [1] Group 1: Industry Performance - The food ETF (515710) saw an intraday increase of nearly 4%, marking its largest daily gain in the past six months, with trading volume expanding to 160 million yuan [1] - The underlying logic for the food and beverage sector is that the fundamentals are nearing a bottom, with recovery expectations gradually rising [1] - Industry headwinds have largely been released, and the impact of policies is slowing down [1] Group 2: Company Strategies - Some companies are proactively reducing supply to achieve a balance between supply and demand, thereby alleviating channel pressure and mitigating channel risks [1] - Strengthened policy expectations are boosting demand in related consumption areas [1] Group 3: Valuation Insights - The valuation of the food and beverage sector is at historical lows, presenting a favorable opportunity for left-side positioning [1] - As of the last trading day (November 7), the price-to-earnings ratio of the food ETF's underlying index was 20.59 times, positioned at the 7.55% percentile over the past decade, highlighting the mid-to-long-term cost-effectiveness of the sector [1] Group 4: Investment Focus - The food ETF (515710) and its linked fund (012548) track the CSI segmented food and beverage industry theme index, with approximately 60% of the portfolio allocated to leading high-end and mid-range liquor stocks [2] - Nearly 40% of the portfolio also includes leading stocks from beverage, dairy, seasoning, and beer segments, with top-weighted stocks including "Moutai, Wuliangye, Luzhou Laojiao, and Yanghe," as well as Yili and Haitian Flavoring [2]

Core Viewpoint - The food and beverage sector is experiencing a decline despite the overall market reaching new highs, indicating a potential opportunity for investment as valuations remain low [1] Group 1: Market Performance - The food ETF (515710) has decreased by 1.13% as of October 24, reflecting the overall downturn in the food and beverage sector [1] - As of October 23, the price-to-earnings ratio of the food ETF's underlying index is 20.49, which is at the 7th percentile of the past decade, suggesting a favorable configuration for long-term investment [1] Group 2: Policy and Economic Outlook - Recent important meetings have emphasized the need to build a strong domestic market and accelerate the construction of a new development pattern, focusing on expanding domestic demand and enhancing consumer spending [1] - The government aims to stimulate consumption and investment while ensuring a positive interaction between supply and demand, which could enhance the internal dynamics of the domestic economy [1] Group 3: Industry Recovery Signals - According to Guosen Securities, the demand in the restaurant supply chain is gradually recovering, and there are positive signals from the supply side, such as frequent mergers among leading companies, which are increasing industry concentration [1] - Historical trends suggest that with low expectations in the capital market and low institutional holdings, any changes in supply and demand could catalyze stock price increases in the fourth quarter [1] Group 4: ETF Composition - The food ETF (515710) tracks the CSI segmented food and beverage industry theme index, with approximately 60% of its holdings in leading high-end and mid-range liquor stocks, and nearly 40% in leading stocks from beverage, dairy, seasoning, and beer sectors [2] - Major holdings include well-known brands such as Moutai, Wuliangye, Luzhou Laojiao, and Yili, as well as Haitian Flavoring [2]