China Galaxy: It is recommended to continue to pay attention to the investment opportunities brought by new product categories and new channels.

Galaxy Securities in China released a research report, suggesting continued focus on investment opportunities brought by new product categories and new channels. It is expected that the recovery of traditional food and beverage sector will continue to be slow in the second half of 2025, while new consumer trends still have the potential to generate excess returns. On one hand, there is rapid growth in categories such as snacks and innovative soft drinks, and on the other hand, some baking and snack companies are benefiting from changes in discount supermarkets, Sam's Club, and traditional supermarkets in the supply chain. Furthermore, contrary to market views, we believe that traditional consumer trends also have some investment value. Segmented industries with low valuations, high dividends, and stable competitive landscapes have room for growth, and some companies in traditional industries are actively seeking change.