Understanding the Market | The liquor sector is collectively warming up, with a strong overall consumption atmosphere during the Spring Festival. Baijiu is expected to recover, and beer sales may improve

The liquor sector has collectively rebounded. As of the time of writing, CHINA RES BEER rose 5.94% to HKD 25.85; Zhenjiu Lidu rose 4.21% to HKD 6.69; TSINGTAO BREW rose 3.8% to HKD 51.9; BUD APAC rose 2.71% to HKD 7.58. Xiangcai Securities pointed out that the consumption market during the 2025 Spring Festival performed well, with box office revenues reaching a historical high, and significant growth in tourism, catering, and other sectors, creating a strong overall consumption atmosphere. With policy stimulus and economic recovery, the consumption market shows positive signs of warming, and the fundamentals are gradually improving, suggesting attention to recovery opportunities in the catering chain. Currently, liquor is still in an adjustment period, with inventory pressure remaining, and price stability remains the main theme, focusing on terminal sales performance. Hualong Securities noted that the liquor sector is still in a bottoming phase, and with the boost in household consumption, the liquor industry is expected to see a recovery. The current industry valuation is at a historically low level, possessing investment value in the medium to long term. Additionally, the beer industry has a relatively stable competitive landscape, and under the stimulation of active consumption promotion policies, beer sales are expected to improve