Orient Securities: Baijiu bottoming characteristics are becoming increasingly clear, and medium- to long-term allocation value is gradually emerging.

Orient Securities released a research report stating that the bottoming characteristics of baijiu are becoming increasingly evident, and it recommends selecting leaders with strong corporate governance and earnings certainty. The firm believes the industry remains in a bottom-building phase where destocking comes first and price stabilization follows; with an early Spring Festival next year and a shorter stockpiling window, channels will not stock up significantly for a strong start to the year, and it expects the decline in Spring Festival sell-through to narrow but remain under pressure. However, with channel inventories at low levels and wholesale prices stabilizing, the medium- to long-term allocation value is gradually emerging.