CMB Securities: Liquor industry sales in line with expectations, Guizhou Maotai leading the prosperity

CITIC Securities released a research report stating that considering the acceleration of key brand sales in the week before the Spring Festival, the tight supply and continued price increase of Guizhou Maotai will provide support to the sector sentiment. In the medium to long term, institutional holdings in the industry have reached historic lows. Even if there is a slight decline in performance in 26 years, the top five Maotai companies have a safe margin in terms of valuation and dividends. As multiple negative factors that have constrained the industry gradually fade away with the bottoming out of the cycle, there is potential for both sector performance and valuation to be revised upwards. The industry's sales performance meets expectations, with Maotai leading in prosperity. The current decline in industry sales before the Spring Festival is in line with expectations, and attention will continue to be focused on the sales performance of various brands in the last week before the Spring Festival.