Industry core view:
Last week (March 21, 2022 – March 27, 2022), the Shanghai Composite Index fell 1.19%, the Shenwan food and beverage index fell 3.47%, outperforming the Shanghai Composite Index by 2.28 percentage points, ranking 28th among the 31 Tier-1 sub industries of Shenwan. Last week, the food and beverage sector generally fell. Except for meat products (+ 2.72%) and snacks (+ 0.61%), all other sub sectors fell. In mid March, the national liquor price index rose 0.03%. The index of Baijiu price index rose 0.11% from the classification index. 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 beer and popular products, health food signs will be issued soon, and the market is developing in a standardized way; The revenue and net profit of many enterprises increased in 2021. 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 3.74%, of which Luzhou Laojiao Co.Ltd(000568) (-6.70%), Jiugui Liquor Co.Ltd(000799) (-9.60%) and Anhui Golden Seed Winery Co.Ltd(600199) (-21.58%) fell by three. Kweichow Moutai Co.Ltd(600519) decreased by 1.04% and Wuliangye Yibin Co.Ltd(000858) decreased by 6.38% Kweichow Moutai Co.Ltd(600519) : last week, the wholesale price of Maotai fell sharply, and the 20-year flying Maotai price was 2800 yuan / bottle, the lowest price in a year; The price of Feitian loose bottle fell to 2650 yuan / bottle. Maotai’s new e-commerce platform sells four new products, excluding “pumao”. Maotai e-commerce app platform, which has attracted much market attention, seems to be close to online operation. The reporter learned that Maotai’s new e-commerce platform is subordinate to the joint-stock company. In the trial operation stage, it adopts the method of “new channels and new products”, and plans to launch four new products: 53 degrees 500ml ” Kweichow Moutai Co.Ltd(600519) liquor (renyin Lunar New Year of the tiger liquor)”; 53 degrees 500ml “Maotai 1935″; 53 degrees 375ml ” Kweichow Moutai Co.Ltd(600519) wine (renyin Lunar New Year of the tiger wine)”; 53 degrees 500ml ” Kweichow Moutai Co.Ltd(600519) wine (treasure)” Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) : 2021 revenue increased by 12.2% year-on-year. On March 21, Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) issued a performance announcement for 2021, which said that during the reporting period, the company achieved an operating revenue of 51.06 billion yuan, a year-on-year increase of 12.2%; The net profit was 3.86 billion yuan, a year-on-year increase of 6.9% Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) said that Jinhui Liquor Co.Ltd(603919) and shede liquor acquired by the company have achieved good results. In the fourth quarter of 2021, although Jinhui Liquor Co.Ltd(603919) was affected by the epidemic situation in Gansu and Shaanxi, it operated steadily throughout the whole year, relying on the ecological advantages of Fosun and Yu Garden to open up the East China market; Shede Spirits Co.Ltd(600702) achieved an annual operating revenue of 4.97 billion yuan, an increase of 83.8% year-on-year, and a net profit of 1.25 billion yuan, an increase of 114.4% year-on-year. On this basis, the company newly established Fuyu liquor development group to enable the long-term and healthy development of the liquor industry Shede Spirits Co.Ltd(600702) : accelerate the nationwide layout. On March 24, Shede Spirits Co.Ltd(600702) released the record of investor relations activities, which shows that the company will accelerate the national layout of the brand according to the strategy of “focusing on Sichuan, Hebei, Shandong and Henan, improving the northeast and northwest, and breaking through the East and South China”. Focus on resources to create a number of key markets, form a multi brand, multi customer and omni-channel layout in key markets, and focus on intensive cultivation of resources. The company will continue to promote the old wine strategy and dual brand strategy, clarify the company’s product positioning based on consumer demand, and continue to sort out and improve the company’s product system. On the one hand, focus on the brand of shede and build “shede” into a leading brand with sub high-end price and the first brand of old wine category; On the other hand, improve the brand of Tuopai and build “Tuopai” into the most cost-effective popular famous liquor brand Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) : Jia Ruidong resigned as independent director of Fenjiu. On March 24, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) announced that the board of directors of the company had recently received a written resignation report from Mr. Jia Ruidong, an independent director. Due to personal physical reasons, Mr. Jia Ruidong applied to resign as an independent director of the company, a member of the audit committee of the board of directors and a member of the remuneration and assessment committee. After resigning from the above position, Mr. Jia Ruidong will no longer hold any position in the company Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) : selected into the pilot list of IPv6 technology innovation and integrated application. Recently, the 12 departments of the central network, such as the letter office, jointly issued the IPv6 technology innovation and integration application pilot list. Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) was selected jointly with Alipay, Baidu and other head platform enterprises. Meanwhile, the Yanghe River is also the only Baijiu enterprise selected. Other sectors of food and beverage:
Beer: China Resources beer: the revenue of China Resources beer in 2021 was 33.39 billion, and the net profit increased by 119%.
On March 24, China Resources beer released its 2021 annual performance report. The report shows that the annual revenue of China Resources beer was 33.39 billion yuan, a year-on-year increase of 6.2%; The net profit was 4.587 billion yuan, a year-on-year increase of 119%. The report also shows that the group’s overall beer sales in 2021 were about 11.05 million kiloliters, basically unchanged year-on-year. Among them, in 2021, the sales volume of low-grade and above beer reached 1.866 million kiloliters, an annual increase of 27.8%, and the product structure was significantly improved.
Snack food: Bestore Co.Ltd(603719) : the net profit in 2021 decreased by 18.06% year-on-year, and it is planned to pay 2.12 yuan for 10 The operating revenue increased by 1.8 billion yuan in 2021; The net profit was 282 million yuan, a year-on-year decrease of 18.06%; The basic earnings per share is 0.70 yuan. The company plans to pay a cash dividend of 2.12 yuan for every 10 shares.
Condiments: Foshan Haitian Flavouring And Food Company Ltd(603288) : Foshan Haitian Flavouring And Food Company Ltd(603288) double increase in revenue and net profit in 2021. On March 25, the condiment enterprise Foshan Haitian Flavouring And Food Company Ltd(603288) released its 2021 annual report, which showed that its operating revenue was 25.004 billion yuan, a year-on-year increase of 9.71%, and its net profit was 6.671 billion yuan, a year-on-year increase of 4.18%.
Risk factors: 1 Policy risk 2 Food safety risk 3 Epidemic risk 4 The risk of economic growth falling short of expectations.
