CICC's latest research report pointed out that due to the repeated impact of the domestic epidemic, consumer demand and confidence were weak due to the slowdown in the overall income growth rate of residents, damage to food and beverage consumption scenarios, and the revenue side performance of the industry was weaker than expected at the beginning of the year; compounded by international geographical tension, the profit margin of the mass goods sector was also under pressure. Looking ahead to 2023, we judge that the sector is expected to achieve a moderate recovery with the overall economic environment and recovery in consumer demand under a low base. Raw material price performance is differentiated, and prices of some commodities peaking will benefit profit margins in the mass goods sector. Looking at China's domestic demand potential in the long run, food and beverage sector leaders are expected to show resilience in the long term. Currently, sector valuations are historically low, and market pessimism is basically reflected. We are optimistic about the relative improvement in sector performance in 2023, and recommend selecting individual stocks from the bottom up.