Key investment points:
Important announcements of listed companies
Inner Mongolia Yili Industrial Group Co.Ltd(600887) : release the operation from January to February 2022, and the total profit increased by more than 20% year-on-year
Jiugui Liquor Co.Ltd(000799) : release the operation from January to February 2022, and the net profit attributable to the parent company increased by about 130% year-on-year
Anhui Kouzi Distillery Co.Ltd(603589) : the announcement of 2021 annual performance express was released, and the net profit attributable to the parent company increased by 35.37% year-on-year
Industry key data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of March 9, 2022, the average price of fresh milk in the main producing areas was 4.20 yuan / kg, with a slight decrease month on month and a year-on-year decrease of 1.9%.
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 March 9, 2022, the prices of piglets, pigs and pork in 22 provinces across the country had reached 25.57 yuan / kg, 12.25 yuan / kg and 19.68 yuan / kg respectively, with year-on-year changes of – 72.55%, – 48.49% and – 48.07% respectively.
Investment advice
This week, the food and beverage sector continued to fall in the direction of a large outflow of capital from north to baijiu. We previously stressed that this market performance is mainly related to sudden geopolitical events, resulting in the decline of risk appetite in the capital market. Under the liquidity test, the northward capital continues to flow out, which has nothing to do with the fundamentals of the industry. Recently, some enterprises intensively disclosed the operating data from January to February, and the overall situation is improving, which also indicates that the fundamentals of the industry have not changed. At the current time point, we still suggest to select the subject matter with reasonable valuation and its own growth attributes. On the sector side, we still recommend that we must focus on the more high-end Baijiu, and change the space with time, and pay attention to the secondary high-end of the continuous expansion of the market. In terms of popular products, it is still recommended to optimize the dairy industry with downward cost determination during the year and the beer sector with relatively better competition pattern and smoother pressure transmission. The beer sector will continue to benefit from the gradual recovery of consumption scenes after the epidemic, with the positive impact of price increase and high-end products, and high growth is expected. To sum up, we temporarily give the industry a “neutral” 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
