Huatai Securities: Leading liquor companies with strong brand and distribution capabilities are expected to lead the recovery.

Huatai Securities pointed out that the liquor industry is currently in the final stages of a deep adjustment and destocking cycle, transitioning from extensive total volume growth in the past to a new stage of competitive market based on existing inventory. In the short term, key observation variables for the industry to emerge from the adjustment period include stabilizing prices, destocking inventory, and repairing channel sentiment. In the medium to long term, the industry's future growth logic will shift from past "quantity-price expansion" to "quantity stability, price increase, and concentration of leading brands." Leading liquor enterprises with strong brand power and distribution capabilities are expected to lead the industry's recovery and cross the cycle. Positive factors in the industry are brewing, industry consolidation is accelerating, and the sector is at a low level, offering investment value.