Market review of this week: from March 14 to March 18, 2022, SW food and beverage industry index fell by 3.63% as a whole, ranking the fifth among all Shenwan industry indexes, losing about 2.68 percentage points to the Shanghai and Shenzhen 300 index in the same period. Among the sub sectors, only the health products sector outperformed the CSI 300 index in the same period, and the other sectors outperformed the CSI 300 index in the same period. The health care sector rose by 3.75% this week; Meat products fell the most this week, at 6.30%. In terms of the rise and fall of individual stocks, about 20% of individual stocks recorded positive returns and 80% of individual stocks recorded negative returns. Among them, Qinghai Spring Medicinal Resources Technology Co.Ltd(600381) (+ 40.43%), Xiwang Foodstuffs Co.Ltd(000639) (+ 4.43%), Cabio Biotech (Wuhan) Co.Ltd(688089) (+ 4.11%) led the increase Shede Spirits Co.Ltd(600702) (- 8.58%), Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) (- 9.33%), He Bei Cheng De Lolo Company Limited(000848) (- 9.93%) led the decline.
Net inflow of land stock link this week: from March 14 to March 18, 2022, land stock link had a net outflow of RMB 16.692 billion. Among them, the net inflow of agriculture, forestry, animal husbandry and fishery, household appliances and mechanical equipment is the top, and the net outflow of food and beverage, medicine, biology and computer is the top. This week, the food and beverage sector had a net outflow of 7.655 billion yuan, ranking first in the Shenwan industry.
Industry Week view: the financial commission of the State Council held a special meeting to boost the prosperity of the sector and pay attention to the performance catalytic opportunities. Baijiu sector: Recently, influenced by consumption tax and peripheral market, the market risk aversion increases, and Baijiu sector has a big fluctuation. On March 16, the Finance Committee of the State Council held a meeting to analyze the current economic situation and capital market problems, which boosted the prosperity of the sector to a certain extent. Recently, Baijiu Baijiu enterprises released performance data, most of the liquor enterprises achieved steady growth in performance, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Jiugui Liquor Co.Ltd(000799) and other companies during the Spring Festival core products dynamic sales performance was good, in 2022, smoothly achieved a good start, Baijiu first quarter performance is worth looking forward to. In the follow-up, we can grasp individual stocks with high certainty and great performance flexibility. In terms of the target, we recommend that we must focus on the high-end Baijiu Kweichow Moutai Co.Ltd(600519) ( Kweichow Moutai Co.Ltd(600519) ), Wuliangye Yibin Co.Ltd(000858) ( Wuliangye Yibin Co.Ltd(000858) ) and Luzhou Laojiao Co.Ltd(000568) ( Luzhou Laojiao Co.Ltd(000568) ). In the secondary high-end liquor, we can pay attention to Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) ( Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) ), Jiugui Liquor Co.Ltd(000799) ( Jiugui Liquor Co.Ltd(000799) ), Shede Spirits Co.Ltd(600702) ( Shede Spirits Co.Ltd(600702) ), etc; Regional liquor can focus on companies with greater recovery flexibility, such as Anhui Gujing Distillery Company Limited(000596) ( Anhui Gujing Distillery Company Limited(000596) ), Anhui Kouzi Distillery Co.Ltd(603589) ( Anhui Kouzi Distillery Co.Ltd(603589) ), Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) ( Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) ). Popular products: the 315 party this week exposed the violations of some food enterprises, further creating a good food consumption environment. From the cost side, affected by the conflict between Russia and Ukraine and the drought in South America, the Shenzhen Agricultural Products Group Co.Ltd(000061) prices of soybeans, soybean meal and corn are at a high level, and the cost pressure of some popular products remains. The market will continue to pay attention to the marginal improvement brought by the price increase of products, and grasp the high-quality sector in the industry. At present, the cost pressure of the dairy sector is slowing down, and the products continue to boom upward, so we can pay appropriate attention to it. In terms of subject matter, we can focus on Foshan Haitian Flavouring And Food Company Ltd(603288) ( Foshan Haitian Flavouring And Food Company Ltd(603288) ), Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) ( Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) ), Qianhe Condiment And Food Co.Ltd(603027) ( Qianhe Condiment And Food Co.Ltd(603027) ), Tsingtao Brewery Company Limited(600600) ( Tsingtao Brewery Company Limited(600600) ), Chongqing Brewery Co.Ltd(600132) ( Chongqing Brewery Co.Ltd(600132) ), Inner Mongolia Yili Industrial Group Co.Ltd(600887) ( Inner Mongolia Yili Industrial Group Co.Ltd(600887) ), Chacha Food Company Limited(002557) ( Chacha Food Company Limited(002557) ), etc.
Risk tips: raw material price fluctuation, product price increase less than expected, channel development less than expected, intensified industry competition, food safety risk and macroeconomic downside risk
