Core view
In the market, the Wande all a index rose again after a short correction in nearly five trading days last week, closing up 1.16%. Food and beverage rebounded strongly, and the North inflow of funds has increased significantly. The allocation of Baijiu has increased mainly in the expectation of price increase, the annual plan of distributors at the end of the year and the stocking in the busy season. Last week, Moutai formally cancelled the strategy of unpacking the sale of Baijiu, and “Mao five” reunited: concentric and collusion, conspire to develop new wine industry. At the same time, the central government promulgated a policy of “reducing the accuracy and maintaining steady economic growth”. In addition, the seasoning industry has recently set off a price rise tide, the cost pressure has eased, and the price increase has brought marginal improvement in performance. From the perspective of valuation, there have been many callback in the popular products sector since the beginning of the year. Under the catalysis of the price rise tide, the sector is expected to usher in valuation repair.
Industry trend review
Overall market performance, last week, the CSI 300 rose 3.14% to close at 5055.12 points, of which the food and beverage industry rose 5.47%, outperforming the CSI 300 index by 2.33 percentage points and ranking second among the 28 Shenwan sub industries. In terms of sub sectors, last week, the food and beverage sub sectors were in a rising state, among which other wines increased the most, up 15.85%, Followed by yellow wine (10.01%), beer (6.83%), dairy products (5.54%), Baijiu (5.44%). Hebei Hengshui Laobaigan Liquor Co.Ltd(600559) , 26.72% ( Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) ), 21.12% (21.12%), Anhui Kouzi Distillery Co.Ltd(603589) (19.90%), Weilong Grape Wine Co.Ltd(603779) (19.69%) and Shanghai Bairun Investment Holding Group Co.Ltd(002568) (19.67%) have the leading performance.
Industry highlights and important announcements this week
(1) Wine said that the “Maotai five year plan” was reunited: work together to seek new development in the wine industry. At the symposium, Ding Xiongjun and Li Shuguang fully affirmed the development of each other’s enterprises in recent years and had in-depth exchanges on the future development of enterprises and industries. Both sides agreed that Maotai and Wuliangye Yibin Co.Ltd(000858) We must base ourselves on the new development stage, implement the new development concept and build a new development pattern, further improve the communication and communication mechanism between the two sides, promote the traditional friendship of Mao five to play a higher level and wider scope, create a new situation for the cooperation between Mao and five, and inject new vitality into the development of Chinese Baijiu quality. (2) Wine said that on December 8, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) said on the investor interaction platform that the company continued to strengthen the channel sinking of the market in Shanxi Province and launched “one hundred counties and one thousand towns” It is planned to achieve full coverage and fine operation in county-level markets in the province, send sales personnel to attract investment in markets outside the province, assist in expanding terminal outlets and strengthen control over terminals. By the third quarter of 2021, the company had 1 million controllable terminals. (3) According to the daily economic news, on December 13, it was said on the investor interaction platform that the company’s original pulp wine production capacity of Wuling wine was 600 kiloliters / year. The annual output of 1500 kiloliters of Wuling original pulp wine expanded on September 9 this year has been put into production, with a total production capacity of 2100 kiloliters.
Investment advice
1) Baijiu boom continues upward. Hold tight the Baijiu line and look for two or three lines with high elasticity. We should pay attention to Kweichow Moutai Co.Ltd(600519) , Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) , Shede Spirits Co.Ltd(600702) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) and so on. 2) When popular products enter Q3, the high base effect gradually disappears, and the price increase alleviates the cost pressure. With the arrival of the peak season, the performance is expected to improve marginally. It is recommended to pay attention to Foshan Haitian Flavouring And Food Company Ltd(603288) , Fu Jian Anjoy Foods Co.Ltd(603345) , Juewei Food Co.Ltd(603517) and so on.
Risk tips: the risk of epidemic exceeding expectations, food safety risk and market style change risk
