CITIC Securities: It is expected that the performance of liquor companies will likely show a certain degree of improvement starting from the third quarter of 2025.

The research report from CITIC Securities indicates that since the second quarter of 2024, the revenue growth of listed liquor companies has significantly slowed down due to weak industry consumption demand. At the same time, the profit margins of many liquor companies are under pressure due to increased competition and diminishing economies of scale. During this year's Spring Festival peak season, the overall sales volume of the liquor industry has seen a certain degree of narrowing in the year-on-year decline. If future demand gradually stabilizes, taking into account the base effect of 2024, it is expected that the performance of liquor companies will show some improvement starting from the third quarter of 2025. Top liquor companies are continuously improving shareholder returns through increasing dividend payout ratios, repurchases, and shareholdings, enhancing investment safety margins. Considering the expected introduction of consumption stimulus policies and the ongoing macroeconomic recovery, it is recommended to continue allocating resources to top liquor companies.