CICC: Valuation repair expectations in the food and beverage sector are expected to gradually materialize.

According to the research report of Zhongjin Securities, the overall food and beverage industry is currently in a core configuration window of bottom-up recovery and structural differentiation, with valuations falling to historically low levels and a sufficient safety margin. The industry continues to pursue trends of high quality and value, functionality, and healthiness, with snack retailers, membership-based supermarkets, and instant retailers expected to continue contributing to channel growth. Looking ahead to the second half of the year, as new consumption scenarios emerge, the sector's valuation repair expectations are expected to gradually materialize. Zhongjin Securities adheres to investment strategies of sticking to industry leaders, layout recovery, and selecting value. For the liquor sector, it focuses on capturing valuation repairs and high dividend yields, while for the mass food sector, it focuses on industry leaders with outstanding competitiveness and strong performance certainty, as well as targets with reasonable valuations and continuous improvement in fundamentals, and value targets with stable growth and high dividends.