On the 5th, the government work report again stressed that we should firmly implement the strategy of expanding domestic demand and promote coordinated regional development and new urbanization. Smooth the national economic cycle, open up all links of production, distribution, circulation and consumption, and enhance the driving force of domestic demand on economic growth. We judge that the focus of economic growth this year is still consumption. From the perspective of policy orientation, both compulsory and optional consumption will benefit. The demand side of the food and beverage industry will be further improved, and food and beverage enterprises are expected to reverse the weak income growth caused by insufficient demand during the epidemic.
The government work report clearly promotes the sustained recovery of consumption. We will increase residents’ income through multiple channels, improve the income distribution system and enhance consumption capacity. Promote the deep integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) consumption, promote the recovery of life service consumption, and develop new consumption formats and models. Strengthen the construction of supporting facilities such as community elderly care and childcare, and give more support in planning, land use and housing. Strengthen the construction of County commercial system and develop rural e-commerce and express logistics distribution. Improve the quality of products and services, strengthen the protection of consumers’ rights and interests, strive to meet the needs of the masses and enhance the willingness to consume.
From the perspective of policy orientation, this year’s policy direction is mainly to solve the growth of residents’ income and residents’ consumption will. In 2021, the income of urban residents increased by 8.2% year-on-year, almost at the same speed as the growth of GDP, with a better recovery than that in 2020. However, due to the repeated epidemic, residents’ Consumption Willingness is low, and the overall consumption environment is relatively low. In this year’s consumption policy, it is proposed to strengthen the supporting construction of community pension and childcare, which is also to enhance residents’ security and boost consumer confidence. It is expected that in terms of policies to promote consumption this year, there will be policies such as the issuance of consumption vouchers and direct consumption subsidies, which will directly promote consumption.
From the perspective of food and beverage sector, we expect that the policy of increasing residents’ income this year will further improve residents’ income and directly promote consumption, and the demand for leisure food, alcohol and other sectors is expected to pick up. With the liberalization of epidemic control this year, the recovery of alcohol consumption and catering industry has been better promoted. Pay attention to the overall recovery opportunities of segments upstream and downstream of the catering industry chain, such as prefabricated dishes and condiments.
Review of Hong Kong Stock Market:
This week, the essential consumption index of Hong Kong stocks fell by 2.93%, of which the rise and fall of key companies were Zhou Heiya – 3.99%, Yihai International – 9.54%, China Feihe – 10.01%, nongnongshanquan – 6.62%, Mengniu Dairy – 1.12% and Budweiser Asia Pacific 1.01%.
Risk tips:
The epidemic has led to lower than expected consumer demand; The operation of the company is less than the market expectation
