Zhongjin released a report on the food and beverage industry, pointing out that in the second half of the year, it is bullish on three investment themes, including high-growth leading companies, high-dividend stocks, and individual stocks with abundant cash reserves and potential to increase dividends, as well as undervalued and potential targets for marginal improvement. In the first half of the year, while the travel industry prospered, the recovery of the dining industry was slower than expected, and the recovery of beer, frozen food, and B-end condiments was relatively weak. The Baijiu sector slightly exceeded expectations during the Spring Festival due to a higher number of returning home people and the festival effect. After entering the low season in the second quarter, consumption was relatively flat. Currently, market expectations for the sector are low. The bank believes that the valuation of leading companies has fallen, and the sector has long-term allocation value. Looking ahead to the second half of the year, the bank believes that the food and beverage industry is expected to achieve a mild recovery in the context of continuous macroeconomic and consumption stimulus policies, which are closely related to expectations of residents' income and CPI trends. Under the background of accelerating concentration and differentiation of the Baijiu sector, leading liquor companies will accelerate the harvest of industry share, and the probability of achieving the annual performance target of leading companies is relatively high. The popular product sector will benefit from the decline in costs and efficiency improvement, and the profit margin is expected to stabilize and rise. Zhongjin maintains its profit forecast and valuation for food and beverage individual stocks, and favors listed in Hong Kong such as unified, Master Kang, Want Want China, ZhenJiuLiDu, Run Beer, Mengniu, and YeeO.