HK Stock Market Move | ZJLD (06979) dropped more than 4% in the afternoon. Liquor sales before New Year's Day were relatively low, and the market expects liquor sales during the Spring Festival to decrease by double digits.

ZJLD(06979) fell more than 4% in the afternoon, as of the time of publication, it had fallen 3.56% to HKD 6.23, with a turnover of HKD 35.6825 million. China Securities Co., Ltd. pointed out that recently, the ex-factory prices of liquor have dropped significantly, and most liquor companies have not yet started the repayment work on a large scale before New Years Day. The main reasons are the weak market demand, lack of confidence in the channels, and significant financial pressure. The progress of repayment before the Spring Festival may be more critical. It is expected that more brands will focus on repayment throughout Q1 to ensure the completion of the annual target. Sinolink pointed out that in the short term, the market still focuses more on short-term reality rather than medium to long-term expectations for the liquor sector. The current expectations for the sales of liquor during the Spring Festival have decreased by double digits, and in the short term, attention can also be paid to feedback under low expectations which may catalyze valuation repair. The bank also pointed out that from the industry's perspective, the liquor industry is still in a phase of declining prosperity. Observing the current effectiveness of policies from top to bottom, the fundamentals of the liquor industry are expected to gradually stabilize from the late 25th.