HK Stock Market Move | ZJLD(06979) rebounded more than 6% with Mid-Autumn Festival liquor sales declining, while leading liquor companies' operating capabilities continue to improve.

ZJLD (06979) rebounds more than 6%, after a cumulative drop of over 20% in the previous month. As of the time of publication, it has risen by 5.78% to HK$6.04, with a turnover of HK$54.1995 million. On the news front, due to the relatively weak consumption atmosphere during the Mid-Autumn Festival, the sales of Baijiu have seen a decline compared to the same period last year. Huachuang Securities believes that despite the weak external demand, the leading prices in various price ranges remain relatively stable. Combined with channel feedback, high-end Maotai has continued to control inventory from July to August, with Feitian wholesale prices slightly dropping to 2500 yuan and retail prices remaining stable at 2350-2400 yuan. With the two peak seasons of Mid-Autumn Festival and National Day spaced two weeks apart, providing a certain window for increased returns home and banquet scenarios, there is hope for some replenishment before National Day, channels are likely to add some additional payments near the end of the fiscal year to guarantee annual profits, and inventory may see some digestion. China Securities Co.,Ltd. believes that as market expectations for Mid-Autumn Festival and National Day continue to adjust, the stock prices of liquor companies continue to fall. However, in the long term, the operating capabilities of leading liquor companies continue to improve, with room for market share expansion, and consumption upgrades are still evident in the mid-range price bands. The dividend yields of some companies have reached 4% or even higher, highlighting their value for allocation, and waiting for the market to recover. Huaxin Securities, on the other hand, believes that overall, the key to sector growth in 2024 still lies in the recovery of consumer confidence and economic recovery, with a long-term focus on the recovery of consumer power and the restoration of business scenarios.