Investment summary:
Talk every Monday: bamboo stick and sandals are lighter than horses, and the high-end process of beer riding the wind and waves
Beer production increased by 4.44% year-on-year in 21 years, reversing the downward trend for seven consecutive years. Since 2013, China’s total beer production has decreased for seven consecutive years. In 2021, China’s beer industry recovered, and the output rose by 4.44% year-on-year. The growth of beer in the current stage is mainly driven by the price increase under the background of high-end. Beer production has declined for seven consecutive years, but the market sales of beer have continued the momentum of continuous growth, mainly due to the continuous rise of beer unit price. High end beer has become the only way.
The overall performance of Listed Companies in the beer industry in 2021 is good. All beer companies that have disclosed the annual report of 2021 have achieved double growth of revenue and net profit, and the disclosed contract liability data is good, so the industry growth has a certain potential.
Chongqing Brewery Co.Ltd(600132) : sometimes the wind and waves will break through, and the clouds and sails will be hoisted straight to the sea.
Both volume and price increased to promote performance growth. 21 year revenue / 13.12 billion yuan (up 19.9% year-on-year), profit after deduction of non profit 142 million yuan (up 76.1% year-on-year reference data). Achieve rapid growth, mainly due to the simultaneous rise of volume and price. The company’s sales volume increased by 15.1% year-on-year in 21 years, mainly due to the continued large volume of Wusu and other large single products, and the continuous growth of sales outside Xinjiang; The ton price increased by 5%, mainly due to the optimization of the company’s product structure and the further increase of the proportion of high-end products.
High grade beer continues to develop, and the product structure is rapidly upgraded Chongqing Brewery Co.Ltd(600132) high-end process is relatively smooth. In 21 years, the sales revenue of high-end products (products priced at more than 10 yuan) was 4.6 billion yuan, with a year-on-year increase of 45.47%, contributing about 36% of the revenue, becoming the core engine of the company’s revenue acceleration. The contribution of high-end products to the annual revenue structure was 14.3%, and the rapid upgrading of high-end products accounted for 36.5%, respectively. The sales volume of high-end products increased significantly by 43.47%, and the gross profit margin increased to 61.47%, driving the company’s comprehensive gross profit margin to 51.35%, a new high and leading the industry.
The wind blows from Qingping, and the nationalization drives the rapid expansion. As a leading beer enterprise in China’s high-end process, although the nationalization process of the company is still in the primary stage, its layout in the regional markets of East and South China will further accelerate its development. In the future, we are optimistic about Chongqing Brewery Co.Ltd(600132) product structure adjustment and channel expansion, which will bring more powerful performance growth.
China Resources beer: quality development, decisive battle for high-end.
The revenue increased slightly, and the adjustment of product structure contributed to the upward profit. (secondary) the sales volume of high-end and above products increased by 27.8% year-on-year, which strongly boosted the company’s performance.
The leading advantage of high-grade beer sales is still obvious. The company’s (sub -) high-end products sold 1.866 million kiloliters in 21 years, which is the leading level in China’s beer industry. The company’s gross profit margin increased slightly by 0.8% to 39.2% in 21 years, reaching a record high.
Tsingtao Brewery Company Limited(600600) : the Great Wall still exists today.
In 21 years, Tsingtao Brewery Company Limited(600600) achieved an operating revenue of 30.167 billion yuan, an increase of 8.67% year-on-year, and a net profit of 3.155 billion yuan, a significant increase of more than 40% year-on-year.
Market Review
In recent weeks, the index of food and beverage has risen by -1.37%, ranking fourteenth in 28 industries of Shen Wan, running the Shanghai and Shenzhen 300 index 0.3pct, and decreasing Baijiu (-0.65%), other alcohol (-1.32%) and dairy products (-1.6%) in sub sectors.
Top 5 gainers of individual stocks: Gansu Huangtai Wine-Marketing Industry Co.Ltd(000995) , Qingdao Foods Co.Ltd(001219) , Hai Nan Yedao (Group) Co.Ltd(600238) , St China and Portugal, Qinghai Spring Medicinal Resources Technology Co.Ltd(600381)
Top 5 stocks with declines: Shandong Delisi Food Co.Ltd(002330) , Ganyuan Foods Co.Ltd(002991) , Suzhou Weizhixiang Food Co.Ltd(605089) , Jiahe Foods Industry Co.Ltd(605300) , Haixin Foods Co.Ltd(002702)
Investment strategy
Key recommendations: 1 Chongqing Fuling Zhacai Group Co.Ltd(002507) , Shanghai Bairun Investment Holding Group Co.Ltd(002568) , are recommended for companies that occupy a leading position in subdivided fields and have a good competitive pattern and strong ability to raise prices. 2. The milk industry giant Inner Mongolia Yili Industrial Group Co.Ltd(600887) , which is basically stable in normal temperature and low temperature milk, has made great efforts in infant powder and cheese business, and has achieved good results in the beginning of the year. 3. For the beer industry with improved competition pattern and high-end certainty, recommend Chongqing Brewery Co.Ltd(600132) , China Resources beer and pay attention to Tsingtao Brewery Company Limited(600600) . 4. Ternary organism with strong downstream demand, limited upstream bargaining power and leading position in oligopoly pattern in horizontal competition. 5. Good performance and high certainty Kweichow Moutai Co.Ltd(600519) , Wuliangye Yibin Co.Ltd(000858) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) .
