China's food and beverage sector is in a core allocation window of bottom recovery and structural divergence, with valuations falling to historical lows and offering sufficient safety margins, according to a research report from China International Capital Corporation (CICC) cited by 36Kr. The industry trend toward high value-for-money, functionality, and health continues, while snack retail, membership supermarkets, and instant retail are expected to contribute channel growth. Looking to the second half of the year, CICC expects valuation recovery to materialize gradually as new consumption scenarios emerge. The firm maintains an investment strategy of holding leading companies, positioning for recovery, and selecting value plays, focusing on valuation recovery and high dividend yields in the baijiu sector, and competitive leaders with strong earnings visibility, reasonable valuations, and improving fundamentals in the mass food segment.