The food and beverage sector continued its downward adjustment today (June 3rd). The Huabao Food & Beverage ETF (515710), which reflects the overall trend of the sector, weakened rapidly after opening and continued to trade at low levels. As of the time of writing, its on-market price has fallen by 1.76%.
In terms of constituent stocks, both baijiu and consumer staple stocks performed poorly. As of writing, stocks such as Milkground, Eastroc Beverage, and Zhujiang Beer have fallen by over 4%, while Yanjing Brewery, Jiugui Liquor, Gujing Gongjiu, and others have dropped more than 3%, dragging down the sector's performance.
On the news front, according to the JD.com Wine Industry WeChat public account, on June 2nd, JD Supermarket's wine business department released its 618 opening sales report. From 8:00 PM on May 30th to midnight on June 1st, the sales volume of famous wines on JD.com increased by 40% year-on-year. Some super single items saw transaction value increase by up to 71 times year-on-year. Specifically, transaction value for Moutai's 2026 Feitian 53-degree whole-case set grew 80% year-on-year, and Wuliangye's Eighth Generation Wuliangye opening sales exceeded 100 million yuan.
Analysis points out that JD.com's impressive 618 wine sales report, with significant increases in famous wine sales, Wuliangye surpassing 100 million yuan, and Moutai posting strong growth, indicates robust online consumption demand and vibrant channel activity for the liquor sector, spanning high-end, sub-high-end baijiu, and imported spirits.
From a valuation perspective, the food and beverage sector remains at a low valuation level. Data shows that as of yesterday's (June 2nd) market close, the price-to-earnings ratio of the CSI Food and Beverage Sub-Industry Index, tracked by the Huabao Food & Beverage ETF (515710), was 20.87 times, positioned at the low 14.09th percentile over the past decade, highlighting its cost-effectiveness for medium to long-term allocation.
Donghai Securities notes that the food and beverage sector has experienced significant adjustment this year, with public fund allocation to the sector continuing to decline. Valuations are at a bottom, making it a direction for capital seeking shelter. Influenced by policies from May 2025 and against a backdrop of low comparables, consumption scenarios are expected to continue recovering. The fundamentals of the baijiu sector are at a low point, with prices for high-end liquor stabilizing and sales velocity expected to improve marginally. The restaurant supply chain directly benefits and has been on an improving trend since the second half of last year. The firm suggests focusing on investment opportunities arising from the bottoming out and recovery of dining and beverage consumption.
For one-click access to core assets in the food and beverage sector, focus on the Huabao Food & Beverage ETF (515710). According to China Securities Index Co., the ETF tracks the CSI Food and Beverage Sub-Industry Theme Index, with leading baijiu holdings accounting for nearly 60% of the portfolio. The top ten weighted stocks include Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, Yanghe, Yili, and Haitian Flavouring. Off-exchange investors can also access core sector assets through the ETF's feeder funds (Class A: 012548, Class C: 012549).
Note: When subscribing for or redeeming fund units, subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Detailed fund fee structures are available in the fund's legal documents.
Risk Disclosure: The Huabao Food & Beverage ETF passively tracks the CSI Food and Beverage Sub-Industry Theme Index. The index's base date is December 31, 2004, and it was published on April 11, 2012. The index's constituent stocks are adjusted according to its compilation rules, and its historical back-tested performance does not indicate future index performance. Individual stocks mentioned in this article are listed for objective illustration as index constituents and do not constitute stock recommendations or represent the investment direction of the fund manager or the fund. Any information appearing herein (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any form to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other fund legal documents to understand the fund's risk-return characteristics and select products suitable for their own risk tolerance. A fund's past performance does not predict its future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. According to the fund manager's assessment, the risk rating of the Huabao Food & Beverage ETF is R3 - Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions are subject to the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) conduct risk assessments of the above-mentioned funds based on relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from various sales institutions may not necessarily be consistent, and the fund product risk rating results issued by fund sales institutions shall not be lower than the risk rating results made by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and make prudent fund selections based on their own investment objectives, horizon, experience, and risk tolerance, bearing the associated risks themselves. The China Securities Regulatory Commission's registration of the above-mentioned funds does not indicate its substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Fund investment involves risks.
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