CITIC Securities: New consumer trends drive reassessment of health products, beverages, beer and other products will usher in a peak season.

The CITIC Securities Research Report pointed out that the food and beverage sector's Q1 earnings report maintained a high quality, and overall stability has been maintained since April. The two sessions proposed to vigorously stimulate consumption, making domestic demand the driving force and stable anchor for economic growth. The central government issued the "Special Action Plan to Stimulate Consumption," providing comprehensive guidance for consumer recovery. The focus is on four sectors: 1) Baijiu (Chinese liquor). Leading liquor companies have stable performance, adjusting to lead the industry through challenges. 2) Low-alcohol beverages. Beer sales rebounded, with attention on the sustainability of seasonal improvements. 3) Restaurant supply chain segment leaders such as Haitian Flavouring & Food, and Anjing Food, with improved cost margins such as Angel Yeast and Fuling Pickles, benefiting from the trend of restaurant chain penetration such as Yihai International. 4) Snacks maintain high demand, with new products and channels contributing to growth, hot sales of konjac products, continuous opportunities in the snack category, and increased focus on health-oriented beverages.