CMB International published a report stating that this year various consumption trends are further emerging in the new cycle. The Retail Trade format shows multiple challenges such as a slowdown in the premium pyramid structure, deep internal adjustments within companies, and reduced operational leverage. However, fierce competition among manufacturers has accelerated the emergence of new consumption trends, driving rapid adjustments in the market structure and speeding up the process of survival of the fittest, helping the Industry capture consumer demand more accurately and emerge from the trough. Many enterprises are firmly advancing reforms this year to better adapt to the new phase of high-quality development.

The bank pointed out that next year, emotional value consumption will continue to lead the market. In the CSI SWS Food & Beverage industry, high-quality, well-reputed health products are expected to continue leading the way. As the pace of product upgrades slows down, the industry will refocus on the actual needs of consumers. In the Beer sector, enterprises plan to expand mid-range price products to meet broader mass-market demands. CHINA RES BEER (00291.HK), with the help of Heineken NV Sponsored ADR's increased distribution rates, is expected to continue ASP growth.

In the Aquatic Products sector, NONGFU SPRING (09633.HK) as the leader will reposition its packaged water product line to alleviate margin erosion and cater to the healthy consumption trend through its sugar-free tea products, maintaining high-speed growth. In the snacks sector, WEILONG (09985.HK) is expected to achieve significant sales growth next year due to continuous product innovation and upgrades, becoming a provider of low-cost psychological comfort and emotional value against the backdrop of increasing social pressure.

The bank continues to recommend companies with high profit certainty. In the beauty and skincare product consumption, we maintain a 'Buy' rating for Proya Cosmetics (603605.SH); in the CSI SWS Food & Beverage industry, we maintain a 'Buy' rating for CHINA RES BEER.