This week: Beijing Shunxin Agriculture Co.Ltd(000860) issued a notice in March 18th. In view of the increase in the cost of raw materials and transportation, the production cost increased significantly. After the company’s research, it decided that the net content of 500ml should be based on the original price basis, and the net content of the Baijiu liquor should be 3 yuan to 15 yuan. Luzhou Baijiu: raised 10 yuan to 15 yuan. The price adjustment is planned to be implemented from May 1, 2022. The price increase was the second increase in the company’s six months. As early as the beginning of this year, Beijing Shunxin Agriculture Co.Ltd(000860) has announced some price adjustment of Baijiu products. While the market scale of light bottle wine is expanding, it shows a trend of transferring from low-end and low price to high price and high cost performance of famous wine. We believe that Beijing Shunxin Agriculture Co.Ltd(000860) this price increase not only increases the hedging cost, but also helps the company to upgrade its product structure and maintain its brand value and image.
Industry highlights: 1) Anhui Kouzi Distillery Co.Ltd(603589) 2021 revenue exceeded 5 billion for the first time, with a year-on-year increase of 25.37%. 2) Anhui Yingjia Distillery Co.Ltd(603198) 2021 net profit of 1.38 billion, an increase of 44.7% year-on-year. 3) Jinhui Liquor Co.Ltd(603919) 2021 revenue 1.788 billion, an increase of 3.34%. 4) Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) plans to invest 9.102 billion yuan in the expansion project of original wine production and energy storage. 5) Sichuan’s output of Baijiu increased by 7.3% in 1-2 months. 6) Shede’s revenue in 2021 was 4.969 billion yuan, a year-on-year increase of 83.8%. 7) Beijing Shunxin Agriculture Co.Ltd(000860) raise the price again within half a year.
Rise and fall of secondary market: from March 14 to March 18, the secondary market agriculture – 2.10%, commerce – 2.63%, food and beverage – 3.58%, ranking 20, 25 and 27 in CITIC 30 industry.
Risk tips: 1. The risk of macroeconomic weakness; 2. The risk of long-term epidemic prevention and control in China; 3. Risks of major food safety incidents; 4. Major agricultural epidemic risk.
