China International Capital Co research says the China food & beverage sector is
in a bottoming recovery with structural divergence. Valuations have fallen to
historical lows, offering a healthy margin of safety. Consumption trends favor
better quality-for-price, functional and health-oriented products. Channel
growth is expected from snack bulk sales, membership supermarkets and instant
retail. Into H2, as new consumption scenarios emerge, the firm expects a gradual
sector valuation re-rating to take hold.
