CITIC Securities: Optimistic about the improvement of the consumer goods sector in the second half of the year.

The report from CITIC Securities points out that in 2026Q2, overall demand for consumer goods weakened compared to the previous quarter, but maintained a steady positive growth year-on-year. On the cost side, the beverage sector faces some cost pressures, while costs in other sectors are relatively stable. In terms of expenses, price competition has eased or remained stable this year, with healthy channel inventory and rational competition among various companies. Entering the second half of 2026, with the weak base of demand in the same period last year and the steady and rational demand growth so far this year, we are optimistic about the improvement in the consumer goods sector in the second half of the year. Recently, there have been more adjustments in the stock prices of the consumer goods sector, and the sector's valuation in 2026 has declined from the previous 15-20x to around 15xPE or lower, highlighting the valuation advantage gradually. It is recommended to continue focusing on three main lines of investment. 1) Pro-cyclical logic: Recommend the catering and dairy sector. 2) Independent growth logic: Recommend the beverage and snack sectors with higher prosperity. 3) High dividend defense main line.