China Galaxy Securities: The baijiu industry as a whole remains in a destocking phase; focus on structural growth investment opportunities.

China Galaxy Securities research report states that the baijiu industry is still in a phase of scale contraction. Against the backdrop of pressure on sell-through, liquor companies are proactively destocking, and the adjustment trend is expected to continue in the fourth quarter. Under a weak beta backdrop, continue to identify alpha opportunities, with three major directions to watch: 1. The ultra-high-end price band, where Moutai still has relatively good sell-through performance due to its strong brand power; 2. The price band below 300 yuan as well as light-bottle baijiu, centered on banquet, light business, and self-consumption scenarios, which are less affected by macroeconomic cycles and still have good growth potential; 3. Companies still in the phase of pan-regional brand expansion, which can partially hedge against the impact of the industry downturn cycle.