The food and beverage sector experienced volatile gains today (January 12), with the Huabao Food and Beverage ETF (515710), which reflects the overall trend of the sector, trading mostly in positive territory after opening. As of this writing, its on-market price has increased by 0.34%.
Regarding constituent stocks, baijiu shares saw widespread advances. As of this writing, Shanxi Xinghuacun Fen Wine Factory Co.,Ltd., Luzhou Laojiao Co.,Ltd., and Anhui Gujing Distillery Company Limited surged over 2%, while Wuliangye Yibin Co.,Ltd., Yanghe Brewery Joint-Stock Company,Ltd., and Jiangsu King's Luck Brewery Joint-Stock Co.,Ltd. rose more than 1%. Kweichow Moutai Co.,Ltd. also saw modest gains.
Fundamentally, Kweichow Moutai Co.,Ltd. recently held dealer communications, with key points including: (1) Under the principles of preventing speculation, matching supply with demand, and ensuring market stability, iMoutai will dynamically allocate products, allowing them to reach consumers directly, which helps build a healthy channel ecosystem; (2) On the 9th day after the 53% vol 500ml Kweichow Moutai was listed on the platform, iMoutai had attracted over 2.7 million new registered users, with more than 400,000 successful transactions; (3) The operation of iMoutai will not increase the total supply but aims to break the original closed circles. Through reasonable allocation rhythms, it will consistently and steadily deliver products directly to genuine consumers, which is more conducive to promoting market stability.
Sinolink Securities pointed out that market expectations for the prosperity of the baijiu industry are currently at an absolute low. The gradually clarified volume and price plans from leading baijiu companies will progressively alleviate market concerns about industry price levels and competition. The overall downside risk for the sector is relatively controllable, and they view the sector's safety margin favorably against the backdrop of receding sentiment.
From a valuation perspective, the food and beverage sector is at a historical low, presenting a potential opportune moment for left-side positioning. Data shows that as of the previous trading day's close (January 9), the price-to-earnings ratio of the Segmented Food Index, which the Huabao Food and Beverage ETF (515710) tracks, was 20.16 times, sitting at a low point of only the 5.88th percentile over the past decade, highlighting its medium to long-term allocation appeal.
Looking ahead, China Securities Co., Ltd. noted that reviewing the volume and price changes of premium baijiu across cycles (2012-2016, 2016-2021, 2022-2025), the baijiu industry's "Five Bottoms" phase (policy bottom, inventory bottom, sell-through bottom, wholesale price bottom, production/sales bottom) is resonating with the capital market's "Three Lows and One High" scenario (low expectations, low valuations, low mutual fund holdings, high dividends). Combined with the recent implementation of market strategies by Kweichow Moutai Co.,Ltd., Wuliangye Yibin Co.,Ltd., and Luzhou Laojiao Co.,Ltd., and with the Spring Festival peak season approaching, the inflection point of this baijiu adjustment cycle may be near. As capital markets often anticipate moves, the baijiu sector might present a configuration opportunity at the cycle's bottom.
Further analysis suggests that as companies become clearer about stabilizing market share by prioritizing volume over price, Kweichow Moutai Co.,Ltd. has taken the lead in proactive adjustments. Following the listing of the entire Feitian series on iMoutai, wholesale price management has become more scientific and timely. The wholesale price of standard Feitian may gradually stabilize, and against a backdrop of stabilized expectations, the 2026 Spring Festival peak season will be a key observation period towards the end of this industry adjustment cycle.
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. statistics, this ETF tracks the CSI Segmented Food & Beverage Industry Theme Index, allocating approximately 60% of its portfolio to leading premium and sub-premium baijiu stocks, and nearly 40% to leaders in sub-sectors like beverages/dairy, condiments, and beer. Its top ten holdings include "Mao-Wu-Lu-Fen-Yang" (Kweichow Moutai Co.,Ltd., Wuliangye Yibin Co.,Ltd., Luzhou Laojiao Co.,Ltd., Shanxi Xinghuacun Fen Wine Factory Co.,Ltd., Yanghe Brewery Joint-Stock Company,Ltd.), Inner Mongolia Yili Industrial Group Co., Ltd., and Foshan Haitian Flavouring & Food Company Ltd. Off-exchange investors can also position in these core assets through the Huabao Food and Beverage ETF Link Fund (Class A: 012548 / Class C: 012549).
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