Industry core view:
Last week (February 28, 2022 – March 4, 2022), the Shanghai Composite Index fell 0.11%, the Shenwan food and beverage index fell 1.96%, outperforming the Shanghai Composite Index by 1.85 percentage points, ranking 23rd among the 31 Tier-1 sub industries of Shenwan. Last week, all sub sectors of food and beverage rose less and fell more. Except for health products (+ 7.27%), meat products (+ 4.19%) and beer (+ 2.48%), all other sub sectors fell. Baijiu sector Baijiu last week, Baijiu market is cold. The total profit of Baijiu in 2021 was about 170 billion 200 million yuan, up 28.74% from the same period last year, accounting for 87.3% of the total profit of the liquor industry. Kweichow Moutai Co.Ltd(600519) held two talks to promote development, and the Yanghe River released the first digital collection of ultra high-end baijiu. In the long run, Baijiu consumption is sticky, consumer demand is stable, and the potential energy for inflation remains, and the fundamentals remain good. In terms of mass food, the grain exports of Russia and Ukraine account for about one third of the total global exports. The escalation of the situation between Russia and Ukraine will lead to a decline in the supply of the two countries to the international grain market. The demand rigidity of mass food industry is strong, and it is easy to pass on cost pressure to consumers through price increase. The conflict between Russia and Ukraine will further push up the cost pressure of mass food enterprises. The mass food industry may usher in a second price increase, and the downstream price increase logic is expected to be continuously verified. Suggestions: Baijiu Baijiu Baijiu (Baijiu): Liquor: high-end liquor has a higher growth certainty, and the growth of the high-end liquor is still enough. It is recommended to focus on the high-end and secondary liquor allocation opportunities; 1. 2) Beer: the process of high-end beer is accelerated, the performance of industry leaders is bright, and the long-term good trend is clear. It is suggested to pay attention to high-end beer leaders; 3) Popular food: the demand for popular food is rigid, and the cost drives the price increase logic of the popular food industry, which is expected to be continuously verified. It is suggested to pay attention to the leaders of popular food such as condiments and leisure snacks.
Key investment points:
Baijiu weekly: last week, the Baijiu sector fell 2.89%, of which Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) (-5.28%), Luzhou Laojiao Co.Ltd(000568) (-5.59%) and Wuliangye Yibin Co.Ltd(000858) (-7.41%) fell by three. Kweichow Moutai Co.Ltd(600519) decreased by 1.03% and Wuliangye Yibin Co.Ltd(000858) decreased by 7.41% Kweichow Moutai Co.Ltd(600519) : last week, the wholesale price of Maotai liquor decreased slightly. In the past 20 years, the wholesale price of Feitian Maotai liquor decreased to about 3180 yuan, and the price of Feitian bulk bottle remained unchanged at 2850 yuan / bottle. Maotai held two forums to promote development. On March 3, Maotai Group held a discussion with China urban planning and Design Institute. Ding Xiongjun said that based on the medium and long-term strategic development objectives of Maotai and the reality of Maotai’s ecology, production and living space, we should formulate a comprehensive plan in line with Maotai’s quality and quality development to ensure that Maotai liquor will never change its flavor. On the same day, Maotai and Fenghuang also held a discussion. The two sides had in-depth exchanges on strengthening cultural communication, brand building and all media services. Ding Xiongjun expressed the hope to promote the continuous deepening of bilateral cooperation in a wider range and depict a better future; Build a sustainable and all-round cultural IP platform, spread Chinese wine culture and tell the story of Maotai Wuliangye Yibin Co.Ltd(000858) ：
Wuliangye Yibin Co.Ltd(000858) personnel changes: Jiang Lin and Yue Song served as deputy general managers. On the evening of March 4, Wuliangye Yibin Co.Ltd(000858) released the independent opinions on adding directors to the board of directors and appointing and dismissing senior managers. According to the announcement, the board of directors agreed to nominate Xiao Hao as the candidate for non independent director of the Fifth Board of directors of the company, agreed to appoint Ms. Jiang Lin as the deputy general manager and Secretary of the board of directors of the company, Yue Song as the deputy general manager of the company, Jiang Jia as the chief economist of the company and Zhao Dong as the chief engineer of the company Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) : the Yanghe River released the first digital collection of ultra high-end baijiu. 1368 copies on the 4th line in March, with the selling price of 13.68 yuan. Among them, there is only one collection edition of Dream Blue handcraft class (Master), with a global limited edition of 300 copies. There are three special editions of Dream Blue handcraft class (Master), with 356 copies of each edition. The digital collection was snapped up four minutes after it went online. More than 20000 users participated in the rush purchase, and the wechat applet achieved a million page views in four hours Jiugui Liquor Co.Ltd(000799) : Jiugui Liquor Co.Ltd(000799) Xiangquan products are out of stock. On February 28, Jiugui Liquor Co.Ltd(000799) issued a notice that from March 1, 2022, 54 degrees 500ml Xiangquan liquor (Heyou) (2020 version), 52 degrees 500ml Xiangquan liquor (nostalgia) and 52 degrees 500ml Xiangquan liquor (city Affairs) will suspend receiving orders (except those within the quota of exclusive stores).
Other sectors of food and beverage:
Dairy products: Inner Mongolia Yili Industrial Group Co.Ltd(600887) : Recently, Yili Group obtained the carbon neutralization factory verification statement (pas2060) issued by Bureau Veritas, an international inspection and Certification Group, which means that the first “zero carbon factory” in China’s food industry was born in Yili.
Soft drinks: Eastroc Beverage (Group) Co.Ltd(605499) : Recently, Eastroc Beverage (Group) Co.Ltd(605499) released the financial report for 2021. During the reporting period, the company’s operating revenue was 6.978 billion yuan, an increase of 40.72% year-on-year; The net profit attributable to shareholders of listed companies was 1.193 billion yuan, a year-on-year increase of 46.90%. Both revenue and net profit increased Eastroc Beverage (Group) Co.Ltd(605499) last year, Dongpeng special drink contributed more than 90% of the revenue of nearly 7 billion yuan.
Beer: snowflake beer: Recently, the centralized launching ceremony of new projects in the third quarter of 2021 in Bao’an District, Shenzhen was held in the China Resources snowflake beer headquarters base project in Xin’an street, Bao’an District. It is understood that the development and construction land area of China Resources Snow Beer headquarters base project is 133400 square meters, with a total investment of more than 10 billion yuan. The project is divided into three phases and is planned to be fully completed in June 2025.
Risk factors: 1 Policy risk 2 Food safety risk 3 Epidemic risk 4 Risk of economic growth falling short of expectations
