The food and beverage sector continued its strong performance today (February 4th)! Huabao Food and Beverage ETF (515710), which reflects the overall trend of the sector, saw its price oscillate higher after opening, with an intraday peak gain of 1.19%. As of this writing, it is up 0.68%.
Regarding constituent stocks, both baijiu and consumer staples posted impressive gains. At the time of writing, New Hope Dairy and Yanjing Brewery both surged over 3%, while Jiugui Liquor and Dongpeng Beverage rose more than 2%. Multiple stocks, including Kweichow Moutai Co.,Ltd., Shanxi Xinghuacun Fen Wine Factory Co., Ltd., and Luzhou Laojiao, advanced over 1%.
On the news front, Kweichow Moutai Co.,Ltd. announced on the evening of February 3rd that as of the end of January 2026, the company had cumulatively repurchased approximately 420,000 shares, representing about 0.0333% of its total share capital. The highest purchase price was 1,418.37 yuan per share, the lowest was 1,322.60 yuan per share, with a total expenditure of approximately 571 million yuan. Guosen Securities pointed out that for baijiu, Moutai has maintained a fast sales pace while prices remain stable with a slight increase, indicating the gradual effectiveness of its market-oriented reforms. Sales during the Spring Festival period are expected to grow, laying a foundation for the full year's operations. Looking ahead to 2026, the fundamental outlook is still searching for a bottom in the first half of the year. However, distilleries are easing pressure on channels and actively reducing inventory. Channel profit margins are expected to recover sequentially, allowing for some optimism on the valuation front. Improvements are anticipated in the second half due to a low base effect. From a valuation perspective, the food and beverage sector is at historically low levels, suggesting a potentially favorable timing for investment. Data shows that as of yesterday's (February 3rd) market close, the Price-to-Earnings ratio of the S&P China CSI Sub-Industry Food Index, which the Huabao Food and Beverage ETF (515710) tracks, was 20.37 times, sitting at a low point within the 8.61st percentile over the past decade, highlighting its medium-to-long-term investment appeal.
Looking forward, Kaiyuan Securities stated that the Spring Festival, being a peak season for food consumption, is expected to boost the sector through the release of stocking demand. The Lunar New Year is a core peak season for food and beverage consumption, driven by gift purchases and family gatherings that concentrate demand for consumer staples. With the 2026 Spring Festival falling in mid-February, the timing difference results in a low base for food companies' first-quarter 2026 performance. Coupled with policy emphasis on expanding domestic demand and promoting consumption, the food sector is anticipated to deliver strong quarterly results. For one-stop access to core assets in the food and beverage sector, focus on the Huabao Food and Beverage ETF (515710). According to China Securities Index Co., Ltd., the ETF tracks the S&P China CSI Sub-Industry Food Beverage Theme Index. It allocates approximately 60% of its portfolio to leading premium and semi-premium baijiu stocks, with nearly 40% dedicated to leaders in sub-sectors like beverages, dairy, condiments, and beer. Its top ten holdings include industry giants such as Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, Yanghe, Yili, and Haitian Flavouring. Off-exchange investors can also gain exposure to these core assets through the Huabao Food and Beverage ETF Connect Fund (Class A: 012548 / Class C: 012549).
MACD golden cross signals formed, these stocks are performing well!
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Editor: Yang Ci
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