HK Stock Market Move | ZJLD (06979) fell more than 3%, institution said that the fundamentals of the liquor industry need to be repaired by substantive demand improvement.

ZJLD (06979) fell by more than 3%, dropping to 9.32 Hong Kong dollars as of the time of writing, a decrease of 3.52%, with a turnover of 61.5967 million Hong Kong dollars. On the news front, Guosen pointed out that the mid-year reports of liquor companies are reflecting the pressure on demand. The lack of scenarios is expected to further affect channels and liquor companies in the third quarter. The market has already sufficiently adjusted its expectations for a downward revision in annual growth rate for liquor companies. With the peak season approaching and the marginal impact of policies weakening, the sales of liquor in the market are expected to slightly improve month-on-month, but continue to be under pressure year-on-year. The recovery of fundamentals depends on substantial improvement in demand. CITIC SEC stated that the liquor industry is laying the groundwork, taking into consideration factors such as current inventory, prices, policy impact, recovery of consumption scenarios, and the disclosure of financial reports by listed companies. They believe that the industry fundamentals may bottom out in the third quarter of 2025, and expect the third quarter of this year to be the stage with the greatest pressure on sales, prices, and market confidence in the industry. The second half of this year is expected to see the greatest pressure on financial performance of listed liquor companies. Considering the clear trend of gradual recovery in the future, they see opportunities for bottom allocation in the liquor industry.