The eating and drinking sector is in full swing, Huabao Fund Food & Beverage ETF (515710) rises to 2.03%! Institutions: The darkest hour is over, and it may be the right time to allocate.

The food and beverage sector continued its strong performance this afternoon (March 27), with the food and beverage ETF Huabao (515710), which reflects the overall trend of the sector, experiencing sustained high-level fluctuations. During the session, the intra-day price saw a maximum increase of 2.03%, and as of the time of writing, it was up 1.66%.

In terms of constituent stocks, Xinnuo Wei surged by 14%, while Haitian Flavoring & Food Co. rose over 7%. Some leading liquor brands also performed well, with Yanghe Co. increasing by over 2%, and Kweichow Moutai, Wuliangye, and Luzhou Laojiao also showing significant gains.

Ping An Securities pointed out that the darkest hour for liquor has passed, and a continued recovery is expected by 2026. Moutai’s proactive release of the 1499 yuan Feitian is likely to help return wholesale prices to consumer attributes, accelerating the industry’s clearing and warming. Currently, liquor valuations are low, holdings are low, and dividend yields are high, providing strong downward support.

Zheshang Securities noted that the liquor sector is still in a bottom range, and under the new supply-demand balance, leading liquor companies’ sales have turned upward. In the short term, they remain optimistic about core products of brand liquor companies exceeding sales expectations during the Spring Festival. For mass-market products, companies with strong performance are resilient and are entering a phase of performance expectation catalysts. The beer sector has a low base, is entering a peak season, and benefits from a sports year and restaurant beta catalysts; dairy product demand is marginally increasing, with potential inflection points in raw milk.

From a valuation perspective, the food and beverage sector is currently at a low valuation level. Data shows that as of yesterday’s (March 26) close, the food and beverage ETF Huabao (515710) had a price-to-earnings ratio of 19.02 times for its underlying index, situated at the low end of the 1.37% percentile over the past decade, highlighting cost-effectiveness for medium to long-term allocation.

Looking ahead, Kaiyuan Securities stated that both market expectations and valuations in the food and beverage sector are low, and the willingness for capital allocation is likely to significantly rebound in the future, so it may be worthwhile to actively pay attention. In terms of sub-sectors, it is recommended to prioritize leading stocks in the liquor industry, while for mass-market products, focus on three main lines: first, the mid-term upward trend in the snack sector; second, attention to the raw milk and dairy industry; and third, the restaurant supply chain sector that may benefit from the ongoing recovery of dining scenes.

One-click allocation of core assets in the food and beverage sector, with a focus on the food and beverage ETF Huabao (515710). According to statistics from China Securities Index Company, the food and beverage ETF Huabao (515710) tracks the CSI sub-sector food and beverage industry theme index, with leading liquor holdings accounting for nearly 60%, and the top ten weighted stocks including “Moutai, Wuliangye, Luzhou Laojiao, Yanghe,” Yili Co., Haitian Flavoring & Food, and others. Off-exchange investors can also layout core assets in the food and beverage sector through the food and beverage ETF Huabao connection fund (Class A 012548/Class C 012549).

Note: When investors subscribe to or redeem fund shares, the brokerage firm may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges, registration agencies, etc. Fund rates are detailed in the fund’s legal documents.

Source: Shanghai and Shenzhen Stock Exchanges, etc., as of 2026.03.27. Reminder: Recent market fluctuations may be large, and short-term price changes do not indicate future performance. Investors must invest rationally based on their own financial status and risk tolerance, with high attention to position and risk management.

Risk Warning: The food and beverage ETF Huabao passively tracks the CSI sub-sector food and beverage industry theme index, with the base date of the index being December 31, 2004, and released on April 11, 2012. The composition of the index constituent stocks is adjusted in accordance with the index compilation rules, and past performance does not indicate future performance of the index. The individual stocks mentioned in the text are only an objective display of index constituent stocks and do not constitute any stock recommendation, nor do they represent the fund manager’s and fund’s investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must be responsible for any investment decisions made independently. Additionally, any views, analyses, and predictions in this article do not constitute any form of investment advice to the reader, nor does it bear any responsibility for direct or indirect losses caused by the use of this content. Investors should carefully read the “Fund Contract,” “Prospectus,” “Fund Product Overview,” and other fund legal documents to understand the risk-return characteristics of the fund and choose products that match their risk tolerance. Past performance of the fund does not indicate future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of the fund. According to the fund manager’s assessment, the risk level of the food and beverage ETF Huabao is R3 - medium risk, suitable for balanced-type (C3) investors and above; appropriateness matching opinions should be based on the sales institution. Sales institutions (including direct sales agencies of fund managers and other sales institutions) conduct risk evaluations of the above funds in accordance with relevant laws and regulations, and investors should pay attention to the appropriateness opinions issued by the fund manager in a timely manner. The appropriateness opinions from various sales institutions may not be consistent, and the fund product risk level evaluation results issued by the fund sales institutions should not be lower than the risk level evaluation results made by the fund manager. The differences in the fund’s risk-return characteristics and risk level in the fund contract exist due to different considerations. Investors should understand the risk-return situation of the fund, and carefully select fund products based on their investment objectives, time horizons, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not imply substantive judgment or guarantee regarding the investment value, market prospects, and returns of this fund. Investment in funds must be cautious.

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Editor: Gao Jia