The signal at the bottom of the food and beverage sector is clear. The agency suggests seizing the main line of popular products throughout the year and taking the lead in clearing the tender for liquor

The Zhitong Finance App learned that Cathay Pacific Haitong Securities released a research report saying that in July, the level of market transactions was high and the liquidity of traditional sectors represented by liquor picked up markedly. Combined with the increase in holdings of China Guoxin, China Chengtong, and state-owned investment and operation platforms in many places, the valuation ushered in a round of restoration. Under the rebalance of the market, the bottom value of the food and beverage sector is prominent. Popular products run through the main line throughout the year and seize opportunities at this stage of low layout. It is expected that the fundamentals of liquor will be explored at an accelerated pace, and recommendations will be the first to clear the tenders.

Liquor: Market style rebalancing drives valuation repair

In July, the level of market transactions was high and low. Liquidity in the traditional sector represented by liquor picked up markedly. Combined with the increase in holdings of China Guoxin, China Chengtong, and state-owned investment and operation platforms in many places, valuations ushered in a round of restoration. According to several liquor companies' performance forecasts and shareholders' meeting research, it is expected that the liquor industry will continue to be cleared at the 26Q2 reporting level, and only some individual stocks are expected to achieve flat or positive year-on-year growth. Considering that the current micro-trading structure of the sector has been greatly improved. The 26q2 liquor stock allocation ratio was -1.93pct to 0.97% month-on-month. At the same time, the dividend rate and valuation are attractive. Fundamentals accelerate bottoming and superposition the impact of trading factors. It is recommended that the layout be the first to clear the tender.

Popular products: The recovery trend is clear, and the inflection point of raw milk is showing

After a short-term decline in high-frequency consumption data from April to May, Volkswagen products began to stabilize marginally in June, and Q3 is expected to improve further moderately. The recovery trend is clear throughout the year. Health food penetration has increased and growth continues. The food supply chain/condiments benefit from improvements on both sides of supply and demand. It is expected that the leading Q2 off-season will maintain steady growth and continue to run through the main line throughout the year; some beverage and beer leaders have performed better than the overall situation in the industry segment, and the valuation cost performance ratio is prominent after the expected decline.

Dongpeng Beverage's 26Q2 single quarter revenue +11.3%, net profit to mother +15.4%, net profit +6.56%, proposed cash dividend ratio of 76%. At the same time, it also announced an annual dividend plan of not less than 80% for 26-28 and a Hong Kong stock repurchase plan. The value is highlighted; the inflection point in the raw milk cycle is gradually obvious, driving improvements in leading dairy products and animal husbandry. Youran Animal Husbandry issued a positive profit forecast. The net profit of 26H1 is expected to be 7.39-903 million yuan, compared with a net loss of 297 million yuan compared to 25H1 net loss of 297 million yuan For profit, profit elasticity is strong under the resonance of meat and milk. The 26q2 food and beverage heavy stock allocation ratio was -2.41pct to 1.49% month-on-month. Among them, the distribution ratio for the Volkswagen sector was -0.48pct to 0.52% month-on-month. Clearance at the trading level is also quite obvious. Supported by a fundamental recovery trend, there is strong certainty about the bottom recovery of Volkswagen's product standards, which have grown and overfallen.