CICC: Future demand for liquor may see a slight increase with a slower growth rate

The latest research report from Guotai Junan Securities stated that: 1) The current demand for Baijiu (Chinese liquor) has reached a historical low, with limited downside risks. 2) The relatively loose policies provide a foundation for a recovery in consumption, as shown by the economic data from January to March. We expect that more supportive policies will help stabilize and boost Baijiu demand. 3) In the future, Baijiu demand may slowly and slightly increase, with a focus on short-term mass demand and potential growth in banquet consumption due to a low base. In the medium term, policy stimuli may stabilize demand for high-end Baijiu. The industry's performance for the whole year may show a trend of initial decline followed by improvement in the third and fourth quarters, supported by a low base.