Bottom Consumer Sector: Investment Opportunities from Low Valuations and Structural Transformation

The bottom consumer sector requires ‘strict scrutiny of valuations + tolerant view of transformation’: PB percentile at a historical low provides a safety margin; the sector is shedding its dependence on investment-driven consumption (business/expense spending, etc.) and returning to the real needs of the general public, completing structural optimization. The resonance of valuation repair and fundamental improvement forms the core investment logic [1].

• Low Valuations
  : Bottom consumer sector PE-TTM is about 21.57 (historical 25.76% percentile), PB is in the bottom range of the past 10 years; sub-sectors (dairy products, snack foods, frozen foods, etc.) have bottomed out in fundamentals and have low valuations, with sufficient safety margin [2][3].
• Structural Transformation
  : In 2025Q3, the food and beverage sector’s revenue/profit decreased by 4.9%/14.6% YoY, and the industry is accelerating clearance; traditional consumption (e.g., baijiu) has been hurt by business consumption, but the rigidity of mass demand is strong; service consumption has become a new growth pole (policy sets 500 billion yuan in re-loans to support) [3][5].
• Future Outlook
  : The middle-income group of over 400 million drives upgrading; emerging channels (bulk retail, instant retail) and new categories (konjac, oats) are highly prosperous; it is expected that the industry will resume growth in 2026, and the rebalancing of pricing structure will drive traffic/sales growth [2][4].

The valuation logic and transformation views of the original post are highly consistent with the research results: low valuations provide a safety margin for allocation, and structural transformation (from investment-driven consumption to the real needs of the general public) lays the foundation for long-term growth; favorable policies and marginal recovery of demand further strengthen the resonance effect of valuation repair and fundamental improvement.

• Opportunities
  : Large room for valuation repair; significant structural opportunities in service consumption and emerging channels/categories; clear expectation of industry recovery in 2026.
• Risks
  : Cautious about high-end consumption; industry differentiation intensifies; short-term pressure on revenue and profits may persist.