CITIC Securities: Focus on assets benefiting from policies and price increases, optimistic about ranches and leading companies with strong pricing power

CITIC Securities Research Report pointed out that the two sessions released a strong signal to boost consumption, expanding domestic demand was listed as the top priority of economic work in 2026. Expanding the supply of high-quality consumer goods and services, the government work report emphasized "stimulating the vitality of consumption in the sinking market", continuing to implement the policy of trading in old for new for consumer goods and services and increasing capacity, focusing on bottom-up allocation opportunities for core consumer assets. Retail chain reform is in line with the direction of domestic demand policy. On March 13, 2026, Maotai implemented a policy of selling multiple core personalized non-standard products on consignment, which is a key measure for its multi-dimensional operating model to land. The ownership of the products belongs to Maotai, and distributors participate by paying a deposit, transactions are carried out on the Maotai platform, and profits are earned through a fixed service fee of 5%. Maotai has established an assessment mechanism to promote sales, with online and offline linkage, consolidating its To C transformation and reshaping the liquor distribution ecology. In the face of input-driven inflation pressure, focus on beneficiaries of the price increase chain, optimistic about upstream ranches, expecting resonating demand for meat and dairy products in the second half of the year, with continuing increase in beef prices. Some large-scale retail stores have reported nearly double-digit growth in same-store sales in January and February, overall performance exceeds expectations, the competition for snacks in large-scale retail stores is improving and profits are being released, single store improvement is expected in 2026, strong recommendation for investment opportunities in retail chain reform.