CITIC Securities: Valuation of liquor sector at historically low levels, with strong bottom allocation value.

CITIC Securities Research Report stated that the bottom signal of the liquor industry is clear, and it is important to seize the opportunity for low-valuation allocation. The demand for liquor is in a bottoming-out stage, with sales still under pressure but gradually recovering compared to the third quarter. It is expected that liquor companies will continue the trend of performance clearance, actively alleviating the market's difficulties, and the industry's bottom signal is clear. Maotai held a shareholders' meeting, emphasizing that the liquor industry has entered a period of deep adjustment in stock competition, and the industry will still face challenges in the short term, but the opportunities outweigh the challenges for Maotai. At the same time, Maotai made it clear that it will not solely focus on "indicator theory," and will adhere to the principle of quality first. It is believed that Maotai, which has a solid brand heritage, can become the industry's cornerstone throughout the cycle. Currently, the valuation of the liquor sector is at a historical low, with strong bottom allocation value. The logic of bottom allocation is based on performance clearance to remove burdens, strong brand support for sales, strong operational support for channels, and exploration of new marketing models.