Key investment points:
Important announcement of listed companies
By-Health Co.Ltd(300146) : release the performance forecast for the first quarter of 2022, and it is expected that the net profit attributable to the parent company will decrease by 10% – 30% year-on-year
Chongqing Brewery Co.Ltd(600132) : issue the annual report for 2021, and the net profit attributable to the parent company (for reference) increased by 38.82% year-on-year Fu Jian Anjoy Foods Co.Ltd(603345) : issue the announcement on foreign investment and acquisition of the equity of Xiamen Anji frozen products supply chain Co., Ltd
Industry key data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of March 30, 2022, the average price of fresh milk in the main producing areas was 4.17 yuan / kg, with a slight decrease month on month and a year-on-year decrease of 2.30%.
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 April 1, 2022, the prices of piglets, live pigs and pork in 22 provinces in China have reached 24.73 yuan / kg, 12.23 yuan / kg and 18.92 yuan / kg respectively, with year-on-year changes of 71.64%, – 43.25% and – 44.1% respectively.
Investment advice
This week, the mood of the food and beverage sector recovered slightly, but the overall sector is still weak due to the impact of the epidemic.
Since the beginning of the year, the sector has continued to be affected by northward capital outflow, upward pressure on costs and disturbance of the epidemic, and the overall performance of the sector has been poor. However, as the sector continues to decline, we should also pay attention to that some leading valuations in high-quality segments have long-term allocation prices. 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.
