CICC: Food and Beverage Sector Valuation Recovery Expected to Gradually Materialize

CICC Company's research report indicates that the food and beverage industry is currently in a phase of bottoming out and recovery, presenting a key opportunity for strategic allocation amidst structural differentiation. The sector's valuation has declined to historically low levels, offering substantial safety margins. Consumer trends favoring high cost-performance, functionality, and health benefits are persisting, with snack bulk stores, membership supermarkets, and instant retail channels poised to drive incremental growth. Looking ahead to the second half of the year, the expectation for valuation repair in the sector is anticipated to gradually materialize as new consumption scenarios emerge. CICC maintains its investment strategy focused on established leaders, recovery plays, and value selections. Within the baijiu (Chinese liquor) segment, the focus is on capturing valuation repair and high dividend yields. For mass consumer food products, the strategy emphasizes sector leaders with outstanding competitiveness and certain performance, targets with reasonable valuations and continuously improving fundamentals, and value stocks offering high dividends and stable growth.