Key investment points:
Important announcements of listed companies
Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) : release the announcement of performance pre reduction in 2021
Annual net profit increased by 132.82% in 2021}
Yanker Shop Food Co.Ltd(002847) : Announcement on additional commitments made by the controlling shareholders of the company
Industry key data tracking
In terms of dairy products, the price of fresh milk fluctuated at a high level. As of January 27, 2022, the average price of fresh milk in the main producing areas was 4.27 yuan / kg, unchanged month on month and year-on-year.
Pork prices continued to decline in the middle of November and 2020, and pork prices began to rise significantly in May. At present, pork prices are at the bottom stage. As of January 28, 2022, the prices of piglets, live pigs and pork in 22 provinces in China have reached 26.97 yuan / kg, 13.97 yuan / kg and 22.41 yuan / kg respectively, with year-on-year changes of – 75.32%, – 50.41% and – 47.79% respectively.
Investment advice
This week, the food and beverage sector stabilized and rebounded after continuous adjustment. Judging from the overall situation of Spring Festival, Baijiu and Su Jiu were better performing, while the price of public goods basically changed smoothly. From the perspective of fundamentals, the industry has not changed substantially. At the current time point, it is recommended to select stocks with reasonable valuation and growth attributes. On the sector side, it is still recommended to focus on the more high-end Baijiu, and change the space with time, and pay attention to the secondary high-end market. In terms of mass products, the upstream cost pressure may be relieved in the middle of this year. At present, the beer sector still has a relatively better competition pattern and smoother pressure transmission, followed by dairy products. The price of raw milk in the upstream of dairy products has been flat with the same period last year. On the basis of good demand and early price increase, the performance is expected to accelerate the release. It is recommended to pay active attention. To sum up, we give the industry a “optimistic” investment rating and continue to recommend Wuliangye Yibin Co.Ltd(000858) (000858), Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) (603369), Angel Yeast Co.Ltd(600298) (600298), Chongqing Brewery Co.Ltd(600132) (600132) and Inner Mongolia Yili Industrial Group Co.Ltd(600887) (600887).
Risk tips
Macroeconomic downside risk; Risk of major food safety incidents
