Key investment points:
Important announcements of listed companies
Qianhe Condiment And Food Co.Ltd(603027) : plan for non-public offering of A-Shares in 2022
Chongqing Fuling Zhacai Group Co.Ltd(002507) : 2021 annual performance express, net profit attributable to parent decreased by 4.53% year on year Eastroc Beverage (Group) Co.Ltd(605499) : 2021 annual report, net profit attributable to parent increased by 46.90% year on year? Industry key data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of February 23, 2022, the average price of fresh milk in the main producing areas was 4.24 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 25, 2022, the prices of piglets, live pigs and pork in 22 provinces across the country have reached 25.23 yuan / kg, 12.45 yuan / kg and 21.15 yuan / kg respectively, with year-on-year changes of – 75.85%, – 50.18% and – 45.63% respectively.
Investment advice
This week, the food and beverage sector rebounded, among which beer performed more strongly, mainly due to the performance disclosure of Budweiser Asia Pacific and the recent year-on-year improvement of the overall sales volume of the industry. From the monthly data, there has been no substantial change in their respective molecular industries, 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 still recommended to select the beer sector with downward cost determination during the year, or the current competition pattern is relatively better and the pressure transmission is more smooth, followed by dairy products. The beer sector will continue to benefit from the recovery of consumption scene after the epidemic this year, with the positive impact of price increase and high-end products, and high growth can be expected.
To sum up, we give the industry a “optimistic” investment rating and recommend Wuliangye Yibin Co.Ltd(000858) ( Wuliangye Yibin Co.Ltd(000858) ), Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) ( Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) ), Chongqing Fuling Zhacai Group Co.Ltd(002507) ( Chongqing Fuling Zhacai Group Co.Ltd(002507) ), Chongqing Brewery Co.Ltd(600132) ( Chongqing Brewery Co.Ltd(600132) ) and Inner Mongolia Yili Industrial Group Co.Ltd(600887) ( Inner Mongolia Yili Industrial Group Co.Ltd(600887) ).
Risk tips
Macroeconomic downside risk; Risk of major food safety incidents.
