Weekly News Express
Industry news: 1) in 2021, the National Sauce wine capacity was 60 million liters, accounting for 8.4% of the Baijiu liquor industry. The sales revenue is 190 billion yuan (+ 22.6%), accounting for 31.5% of the industry; The profit was 78 billion yuan (+ 23.8%), accounting for 45.8% of the industry. 2) Guizhou government strives to add more than 15 listed companies by the end of 2023; 3) Sichuan liquor has 10 key projects selected into 700 key projects, with a total investment of more than 10 billion yuan.
Company news: 1) Wuliangye Yibin Co.Ltd(000858) director Li Shuguang and Zou Tao resigned, and Zeng Congqin served as party secretary and chairman of the group company; Secretary of the Party committee and chairman of the board of directors of the joint stock company; Zou Tao is the Deputy Secretary of the Party committee and general manager of the group company, and Jiang Wenge is the Deputy Secretary of the Party committee, vice chairman and general manager of the joint stock company. 2) Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) it is planned to invest 9.076 billion yuan to build an intelligent brewing center, which is expected to add 18000 tons of high-quality Luzhou flavor original wine and 20000 tons of high-quality elegant Maotai flavor original wine. 3) Anhui Golden Seed Winery Co.Ltd(600199) introduce strategic shareholders. Fuyang investment and development, the sole shareholder of the controlling shareholder golden seed group, transferred 49% of the equity of golden seed group to China Resources war investment.
Feedback from key companies this week
Jiugui Liquor Co.Ltd(000799) : the first quarterly report is about to make a good start, launching the series of eight scenes of drunkards in Hunan. Returning home after the Spring Festival is beneficial to some regions, such as Henan, Anhui and Jiangsu. The dynamic sales are better than last year, of which Anhui has significantly promoted. 1) In terms of products, internal participation and drunkard rise alternately, and eventually the red altar, inheritance and transparent clothing will be recognized by the market. 2) From the sales side, there are more than 400 and 300 exclusive stores for drunkard and internal ginseng respectively, with more than 1000 salespeople. The three product series of internal ginseng, drunkard and Xiangquan are expected to usher in an outbreak in 3-5 years. 3) At present, the sales in Hunan accounts for about 30%, and the national expansion is still the focus. 4) On February 18, the company launched Huxiang eight scene alcoholic products, a total of 8 54 degree “landscape · character” Jiugui Liquor Co.Ltd(000799) series.
Juewei Food Co.Ltd(603517) : exceed the target during the Spring Festival and be confident to complete the equity incentive target. The industry has accelerated the reshuffle under the epidemic, and the leading enterprises are expected to win finally. Jue Wei aims to become the leader of table stewed flavor in 3-5 years and a food platform in 5-10 years. 1) The investment of the company is concentrated in four tracks: brine, condiment, light catering and industrial infrastructure. The investment layout of brine is basically completed, and supplementary investment will be made in the follow-up. Continue to follow up the prefabricated dishes, and the invested hemp seed is expected to be held in the middle of 2022. 2) The consumption scenes of stores that contribute 80% of revenue, such as communities and sinking markets, are less affected. 3) Six factories and main category factories meet the capacity requirements.
Ganyuan Foods Co.Ltd(002991) : during the Spring Festival, the mobile sales of taste nuts increased year-on-year, and the equity incentive plan is expected to be launched. 1) The price increase is superimposed on the decline in the price of raw materials, and the net interest rate in 22 years is expected to increase. 2) 20 flavor nut press conferences will be completed one after another. As a key product, it will enter more than 10000 large-scale supermarkets, and has a bias in expenses and advertising promotion. 3) Henan factory is less affected by the epidemic and has fully resumed work, mainly producing baking, puffing and crispy products. Pingxiang factory produces flavored nuts. 4) The salesperson was basically adjusted in place.
Yanker Shop Food Co.Ltd(002847) : the super dynamic sales of merchants in the Spring Festival are better. Due to the peak staggering of the Spring Festival in January, the sales fell slightly year-on-year. The growth trend is expected to be low before and high after, and gradually improved month on month. 1) Hunan, Jiangxi, Hubei and Guangdong are mature regions, radiating to the surrounding areas. 2) The quantitative loading system has entered the supermarket and convenience store system, and president Zhang Xiaosan is the person in charge. 3) Start to pay attention to e-commerce and do a good job in brand promotion. 4) Attach importance to R & D, and equity incentive includes R & D personnel and gives corresponding shares. 5) Attach importance to talents and make the leadership team younger.
Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) : on the whole, the revenue in the first quarter accounted for about 20% of the whole year, and the products continued to push through the old and bring forth the new. 1) The second half of last year locked all the raw materials this year, and the net profit is expected to be released this year. 2) Shareholders and core employees are not willing to reduce their holdings. 3) The sales target of new products (fruits and vegetables, milk coffee and coconut) this year is about 200 million. It is planned to launch cup products from March to April. 4) The progress of investment promotion has been accelerated, channels have been expanded and consumers have been cultivated. At present, special channels account for about 50%, and the volume of emerging markets has increased sharply this year. 5) In terms of cost investment, increase exposure and terminal channel outlets, with the focus on local promotion.
Investment view
This week, the Baijiu sector is rebounding, and we continue to look forward to the Baijiu rebound. The dust of Wuliangye Yibin Co.Ltd(000858) personnel changes has fallen to the ground, and it is expected that Wuliangye Yibin Co.Ltd(000858) will usher in valuation repair in the future; Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) expansion and landing, we expect the company to achieve the target of 10 billion ahead of schedule; Jiugui Liquor Co.Ltd(000799) the expansion outside the province proceeded smoothly, continued to launch cultural and creative products and followed the route of cultural wine.
For the popular products sector, this week we investigated Yanker Shop Food Co.Ltd(002847) , Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) and continued to be optimistic about the opportunities of the leisure food sector.
Overall, our views remain unchanged. At this stage, we recommend three high-end liquor giants ( Kweichow Moutai Co.Ltd(600519) , Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) ), three high-end three swordsmen ( Shede Spirits Co.Ltd(600702) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Jiugui Liquor Co.Ltd(000799) ), and real estate Baijiu ( Anhui Kouzi Distillery Co.Ltd(603589) , Anhui Yingjia Distillery Co.Ltd(603198) , Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) and Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) ). In the popular products sector, we mainly recommend Juewei Food Co.Ltd(603517) , Yanker Shop Food Co.Ltd(002847) , Ganyuan Foods Co.Ltd(002991) , Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) and continue to pay attention to the beer sector and condiments sector. Give the food and beverage industry an “overweight” rating.
Risk tips
Epidemic fluctuation risk and macroeconomic fluctuation risk; Recommend the risk that the company’s performance is less than expected and the risk of industry competition; Food safety risks; Risk of changes in industrial policies; Consumption tax or production risk; Raw material price fluctuation risk.
