The food and beverage sector continued its strong performance in the afternoon session today (March 27). Huabao Food and Beverage ETF (515710), which reflects the overall trend of the sector, maintained high-level fluctuations, with its intraday price reaching a peak increase of 2.03%. As of the latest update, it has gained 1.66%.
Among constituent stocks, Sinopharm Xingsha surged by 14%, while Foshan Haitian Flavouring & Food Co. rose over 7%. Several leading baijiu producers also showed notable performance: Yanghe Brewery climbed more than 2%, with Kweichow Moutai, Wuliangye Yibin, and Luzhou Laojiao also among the top gainers.
Ping An Securities noted that the darkest period for the baijiu sector has passed, with a sustained recovery expected by 2026. Moutai's proactive release of Feitian Moutai at 1,499 yuan is anticipated to help wholesale prices return to consumption-driven levels, accelerating industry consolidation and recovery. Currently, baijiu stocks feature low valuations, reduced holdings, and high dividend yields, providing strong downside support.
Zheshang Securities indicated that the baijiu sector remains in a bottom range. Under a new balance of volume and price, leading distillers have already seen a turnaround in sales, with short-term optimism driven by better-than-expected Spring Festival sales of core products from branded companies. In the consumer goods segment, companies with strong fundamentals and earnings demonstrate resilience and are entering a phase of earnings expectation catalysts. The beer sector benefits from a low base, peak season demand, major sporting events, and recovery in dining-out activity. Dairy product demand shows marginal improvement, with potential turning points in raw milk prices.
From a valuation perspective, the food and beverage sector remains at low levels. Data shows that as of yesterday's close (March 26), the PE ratio of the Sub-index of Food and Beverage, tracked by Huabao Food and Beverage ETF (515710), stood at 19.02 times, near the 1.37% percentile over the past decade, highlighting attractive medium- to long-term investment value.
Looking ahead, Kaiyuan Securities stated that market expectations and valuations for the food and beverage sector are at low levels, likely leading to a significant increase in capital allocation interest. Investors may consider active attention. Within sub-sectors, baijiu investors should prioritize leading companies, while consumer goods focus on three themes: snack sectors with mid-term growth prospects; the raw milk and dairy industry; and restaurant supply chains benefiting from continued recovery in dining scenarios.
For streamlined exposure to core assets in the food and beverage sector, Huabao Food and Beverage ETF (515710) is a key focus. According to China Securities Index Co., this ETF tracks the CSI Sub-index of Food and Beverage Industry Theme, with nearly 60% allocated to leading baijiu companies. Top holdings include Moutai, Wuliangye, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine, Yanghe, Inner Mongolia Yili Industrial Group, and Foshan Haitian Flavouring & Food Co. Off-exchange investors can also access core sector assets through Huabao Food and Beverage ETF Connect Fund (Class A: 012548 / Class C: 012549).
Note: When subscribing or redeeming fund units, agents may charge a commission of up to 0.5%, including fees from exchanges and registration institutions. Fund fee details are available in legal documents.
Source: Shanghai and Shenzhen Stock Exchanges, as of March 27, 2026. Recent market volatility may be significant; short-term gains or losses do not indicate future performance. Investors should make rational decisions based on their financial situation and risk tolerance, with careful attention to position and risk management.
Risk Warning: Huabao Food and Beverage ETF passively tracks the CSI Sub-index of Food and Beverage Industry Theme, with a base date of December 31, 2004, and publication date of April 11, 2012. Index constituents are adjusted per rules; past performance does not indicate future results. Mentioned stocks are for illustrative purposes only and do not constitute recommendations or reflect fund management views. All information provided is for reference, and investors are responsible for their decisions. No content constitutes investment advice, and no liability is accepted for losses. Investors should read fund documents to understand risks and choose suitable products. Past performance does not guarantee future results. The fund manager assesses this ETF as R3-medium risk, suitable for balanced (C3) or higher risk tolerance investors. Sales agencies provide suitability opinions per regulations.
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