Institutions: Focusing on the dual main themes of mass food recovery and growth

Dongxing Securities believes that, judging from this year’s China Food and Drinks Fair, the market conditions for the snack food segment in the food and beverage industry will continue to stay favorable. It expects snack foods to continue to show a stable growth trend throughout the year, and especially companies that can capture advantages from new channels will perform stronger than the overall industry. With the trend of mass catering recovering, it is more confident about the certainty of upward performance in the frozen food industry. And in the white wine industry, as Moutai’s ex-factory price gradually stabilizes, marginal improvement on the demand side in the second half of the year is expected to bring an overall rebound for the industry.

AJian Securities believes that, for the white wine industry: as policy pressures gradually ease and consumption-expansion measures are catalyzed, demand is expected to recover gradually. The industry is currently at a low valuation level, with pessimistic expectations fully priced in. It expects that the industry’s direction toward clearing out (exiting) will become clearer, and the bottom will become increasingly clear. Industry-wide volume control and price stabilization are driving the recovery of Moutai’s ex-factory price; after the holiday, the off-season’s market pricing for bottles has stayed relatively stable, which signals positivity. Leading liquor enterprises will raise the proportion of dividends, and the dividend yield has certain appeal for allocation. For mass food: focus on the high-growth main growth line with strong market conditions; in some segments, there are still catalysts from new products and new channels. The market will grant some valuation premium to these “scarce” growth targets.

Guosen Securities believes that, 1) for the white wine industry: the Spring Liquor Fair shows a trend of industry structure differentiation, liquor companies returning to rationality, and continued clearing in financial statements. In the short term, it suggests paying attention to the feedback from the first-quarter reports; in the medium term, it will seize the opportunities for allocation. 2) for mass food: products focus on upgrading health-related functions; channels are putting efforts into transformation to uncover incremental growth. The repair of the catering supply chain runs through the whole year, focusing on two main lines: recovery and growth.