HK Stock Market Move | ZJLD(06979) rose more than 7% in the closing hour, the liquor sector welcomed multiple catalysts, institutions are optimistic about the recovery of demand for business liquor.

ZJLD (06979) rose more than 7% in the final trading session, rising 6.64% as of press time, closing at 7.55 Hong Kong dollars, with a turnover of 1.25 billion Hong Kong dollars. Sealand pointed out that recent macroeconomic data has shown marginal improvement, and the policies discussed during the two sessions have catalyzed domestic demand. The valuation of the consumer sector is in need of repair. The bank noted that liquor companies have been adjusting their marketing strategies, placing emphasis on balancing relationships with manufacturers in order to reduce reckless spending and fine-tuning marketing strategies. This reflects the importance placed on balancing relationships with manufacturers. Additionally, the annual Spring Sugar and Liquor Fair will soon be held in Chengdu, providing a clearer picture of the sales situation during the Spring Festival peak season for liquor companies, with marketing strategies being gradually introduced, potentially catalyzing the industry in the short term. China Securities Co., Ltd. believes that the boost to consumer spending from the implementation of macroeconomic policies by 2025 should be viewed optimistically. The recovery of demand for business-use liquor is becoming clearer, and the wealth effect on the general public will also improve as real estate stabilizes and the stock market rebounds. Currently, the inventory of tobacco and liquor products is at a low level, and demand recovery is expected to quickly transmit to liquor companies. Leading Baijiu brands still have good growth potential, with expectations for the year gradually improving. In addition, Wuliangye Yibin has released a market value management system, taking various measures to better enhance the company's investment value and shareholder returns, continuously improving corporate governance.