CITIC Securities: Moutai's price seeking bottom, focusing on the New Year opportunities potentially catalyzed by policies.

Great Wall Securities believes that this week's Maotai price reduction will temporarily suppress the performance of the sector. Attention should be paid to the potential catalysis of consumption in December. Currently, the valuation of the food and beverage sector is at a historically relatively low level, and the bottom logic of high-quality assets such as liquor is clear. Mass-market products focus on three main themes with structural opportunities in niche areas. It continues to recommend liquor and mass-market products with niche logic. It is expected that the mass-market products segment will continue to outperform liquor, and the demand for liquor will stabilize before waiting for the Spring Festival market. In terms of liquor, industry sales continue to stabilize. For mass-market products, the focus is on the three main themes of improving the supply chain of the catering chain and supermarkets, growing health functional high prosperity, and optimizing the cost cycle.