Important announcements of listed companies
Haixin Foods Co.Ltd(002702) : Announcement on foreign investment and establishment of wholly-owned subsidiaries
Shede Spirits Co.Ltd(600702) : the announcement of 2021 annual performance express was issued, and the net profit attributable to the parent company increased by 114.35% year-on-year
Chacha Food Company Limited(002557) : the announcement of 2021 annual performance express was issued, and the net profit attributable to the parent company increased by 15.52% year-on-year
Industry key data tracking
In terms of dairy products, the price of fresh milk fell. As of February 16, 2022, the average price of fresh milk in the main producing areas was 4.25 yuan / kg, down month on month and year-on-year.
In terms of meat products, the prices of piglets, pigs and pork began to rise at the bottom in May 2019 and continued the rising trend. The prices began to decline significantly around November last year, and the downward trend of pork prices was established in the medium term. At present, pork prices are at the bottom stage. As of February 18, 2022, the prices of piglets, live pigs and pork in 22 provinces across the country have reached 25.43 yuan / kg, 12.48 yuan / kg and 21.46 yuan / kg respectively, with year-on-year changes of – 76.52%, – 53.24% and – 47.84% respectively.
Investment advice
This week, the overall food and beverage sector continued its downward trend. From the monthly data, the industry has not changed substantially, and the upstream cost pressure has shown signs of easing. At the current time point, it is recommended to select stocks with reasonable valuation and their own 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 popular products, it is preferred to select the beer sector with downward cost determination within the year or with relatively better current 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.
