HK Stock Market Move | ZJLD (06979) fell more than 4% in early trading. Zhenjiu recently announced measures to control quantity and maintain prices. Institutions stated that the sales of Chinese New Year liquor are in line with expectations.

ZJLD (06979) fell by more than 4% in early trading, and as of the time of writing, it was down by 3.61% at HKD 6.41, with a transaction value of HKD 26.9673 million. On the news front, Guizhou Zhenjiu previously issued a notice to stop accepting sales orders for the third generation Zhen Fifteen (including non-award) products from January 10th. The upgraded fourth generation Zhen Fifteen will be launched on the market, and the third generation Zhen Fifteen will no longer be produced. On January 21st, Lidu Winery issued a notice to suspend the supply of products such as Lidu Sorghum 1308 Intangible Cultural Heritage Gift, Lidu Sorghum 1955, and Lidu Sorghum 1975 with immediate effect. It is reported that controlling inventory has become an important measure for price protection in the liquor industry. Guotai Junan pointed out that the sales of white liquor during the Spring Festival are in line with previous expectations. According to channel research, we expect a decline of less than 10% in the overall white liquor market during the Spring Festival. Considering the year-on-year decline in wholesale prices, we expect a greater decline in sales revenue than in sales volume. The bank expects the industry to experience channel profit bottoming out, inventory bottoming out, and performance bottoming out successively, and will observe the changes in post-holiday off-season demand and manufacturers' responses.