Guotai Haitong: The proportion of food and drink purchases has fallen, with increased allocations to dairy products and snack sectors.

Guotai Haitong released a research report stating that the allocation ratio of the food and beverage sector for the fourth quarter of 2025 decreased compared to the previous quarter. Specifically, the allocation of white wine and non-white wine sectors decreased significantly, while the allocation of other sectors showed an increase compared to the previous quarter, with the beverage, dairy products, and leisure food sectors leading the growth. Identify opportunities at turning points under supply and demand clearing. 1) Securities with price elasticity; 2) Beverages benefit from good travel conditions, focusing on undervalued stocks with high dividends; 3) Growth targets for snacks and food raw materials; 4) Beer; 5) Seasonings stable, livestock capacity reduction supports restaurant supply recovery. Guotai Haitong's main views are as follows: Investment advice: Identify opportunities at turning points under supply and demand clearing by grasping five main lines. 1) Securities with price elasticity; 2) Beverages benefit from good travel conditions, focusing on undervalued stocks with high dividends; 3) Growth targets for snacks and food raw materials; 4) Beer; 5) Seasonings stable, livestock capacity reduction supports restaurant supply recovery. The allocation ratio of actively managed equity mutual funds in the food and beverage sector for the fourth quarter of 2025 continued to decline compared to the previous quarter. Looking at the allocation ratio of actively managed equity mutual funds in the food and beverage sector for the fourth quarter of 2025, the allocation ratio for food and beverage stocks decreased by -0.14% to 4.04%, ranking ninth among all industries. The top five allocated sectors were electronics, power equipment, communications, pharmaceuticals, and non-ferrous metals, with corresponding allocation ratios for the fourth quarter of 2025 of 21.47% (down 1.84% from the previous quarter), 9.87% (down 0.32%), 9.83% (up 1.78%), 9.16% (down 1.92%), and 7.83% (up 2.12%). Looking at sub-sectors, the allocation of white wine and non-white wine sectors decreased, while the allocation of other sectors increased, with leisure food and dairy beverage sectors seeing the most increase. In the fourth quarter of 2025, the allocation ratio of white wine stocks decreased by -0.29% to 2.92%, with the leading white wine companies Wuliangye Yibin and Shanxi Xinghuacun Fen Wine Factory as well as the real estate alcohol leader Anhui Gujing Distillery leading the decline in allocation. Other sub-sectors all showed an increase in allocation except for non-white wine, with allocation ratios for non-white wine, food processing, beverages and dairy, leisure food, and seasonings and fermentation products being 0.15% (down -0.07%), 0.13% (up 0.05%), 0.44% (up 0.06%), 0.26% (up 0.07%), and 0.14% (up 0.04%). The allocation of individual stocks within the food and beverage sub-sectors in the fourth quarter of 2025 showed differentiation. Among the heavily invested food and beverage sub-sectors of mutual funds, 1) White wine: The allocation ratios of white wine leaders and real estate alcohol companies in the fourth quarter of 2025 showed a decrease, leading to a decrease in allocation. 2) Non-white wine such as beer: The overall allocation of the sector decreased, but the allocation ratio of CHINA RES BEER increased compared to the previous quarter. 3) Beverages and dairy: The allocation of the sector increased, with dairy leaders Inner Mongolia Yili Industrial Group, MENGNIU DAIRY; livestock companies YOURAN DAIRY, CH MODERN D, Xinjiang Terun Dairy seeing an increase in allocation, while the beverage company Eastroc Beverage saw a decrease. 4) Leisure food: The allocation ratios of snack channels Fujian Wanchen Food Group, Guilin Seamild Foods, Ganyuan Foods, and Chacha Food increased compared to the previous quarter. 5) Seasonings: The allocation of the sector increased, with companies like Angel Yeast Co.,Ltd., Jonjee Hi-Tech Industrial And Commercial Holding, Sichuan Teway Food Group, YIHAI INTL seeing the highest increase in allocation, while Foshan Haitian Flavouring and Food saw a decrease. 6) Food processing: The allocation of the sector increased, with Anjoy Foods Group, Zhongyin Babi Food, GUOQUAN, and Sirio Pharma seeing the highest increase in allocation. Risk warnings: Increased macroeconomic volatility, intensified industry competition, food safety risks.