The food and beverage sector experienced a slight correction today (June 1st). The Food and Beverage ETF (515710), which tracks the overall performance of the sector, fluctuated at low levels after opening and was down 0.39% at the time of writing.
In terms of constituent stocks, baijiu (Chinese white spirits) led the declines. At the time of writing, Sichuan Swellfun Co., Ltd. was down over 5%, and Gansu Jinjiu Liquor Co., Ltd. fell more than 2%.
Kweichow Moutai Co.,Ltd. (SHA: 600519), Wuliangye Yibin Co., Ltd., and Anhui Golden Seed Winery Co., Ltd. were also among the top decliners, weighing down the sector.
On the news front, JD.com's "618" Grand Promotion saw a strong start. According to a report, during the first 4 hours of the promotion, the average transaction value for the top 100 brands increased over fivefold year-on-year.
The "Liquor Brand Sales Ranking" for the initial 4-hour period was led by Moutai, followed by Wuliangye, Jiannanchun, Fenjiu, Remy Martin, Luzhou Laojiao, Hennessy, Xijiu, Langjiu, and Yanjing Beer.
Furthermore, within the first hour of the promotion, transaction values for 157 liquor brands doubled. Analysts note that the dominance of top-tier brands like Moutai, Wuliangye, Jiannanchun, and Fenjiu in the rankings highlights the concentration advantage of leading names, providing strong support for their stock prices.
The immediate surge in sales for multiple brands reflects robust consumer demand for baijiu and beer, with significant success in online channel expansion. For the stock market, the impressive consumption data during the major promotion validates the resilience of domestic demand, helping to bolster expectations for a broader consumption recovery and economic rebound.
From a valuation perspective, the food and beverage sector remains at relatively low levels. Data shows that as of the previous trading day (May 29th), the price-to-earnings ratio of the SSE Food and Beverage Select Index, tracked by the Food and Beverage ETF (515710), was 21.17x.
This places it at the 16.67th percentile over the past decade, highlighting attractive long-term value. Looking ahead, analysts suggest the baijiu sector is currently in a phase characterized by "low expectations, low holdings, low valuation, and high dividends."
A potential earnings recovery for the sector is anticipated by Q3 2026, with the pace of recovery dependent on indicators such as household purchasing power and economic activity. From a medium-term perspective, baijiu is still viewed as a quality asset with stable cash flows and high dividend support.
For investors seeking exposure to core assets in the food and beverage sector, the Food and Beverage ETF (515710) warrants attention. The fund tracks the CSI Food and Beverage Select Industry Theme Index, with leading baijiu companies comprising nearly 60% of its holdings.
Its top ten holdings include Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine Factory Co., Ltd., Yanghe Brewery Joint-Stock Co., Ltd., Inner Mongolia Yili Industrial Group Co., Ltd., and Foshan Haitian Flavouring and Food Company Ltd.
Comments