Last week’s market:
The social services (Shenwan) sector index rose or fell by – 1.48% in the week, ranking 17 / 31 in the rise and fall of Shenwan industry.
Shanghai Stock Index (- 0.94%), Shenzhen Component Index (- 2.20%), Shanghai and Shenzhen 300 (- 1.06%) and gem index (- 3.64%).
Ranking of sub industries: SW tourism and scenic spots (+ 1.73%), SW Education (+ 0.04%), SW hotel catering (- 2.53%), SW sports II (- 2.79%), SW professional services (- 3.70%).
Top five gainers in social service industry: Tempus Global Business Service Group Holding Ltd(300178) (+ 24.41%), Jiangsu Tianmu Lake Tourism Co.Ltd(603136) (+ 13.78%), Yunnan Tourism Co.Ltd(002059) (+ 10.95%), Dalian Sunasia Tourism Holding Co.Ltd(600593) (+ 9.72%), Qtone Education Group(Guangdong) Co.Ltd(300359) (+ 9.11%);
Top five declines in social service industry: Cloud Live Technology Group Co.Ltd(002306) (- 17.70%), Xi’An Qujiang Cultural Tourism Co.Ltd(600706) (- 10.33%), Beijing Career International Co.Ltd(300662) (- 10.18%), Dalian My Gym Education Technology Co.Ltd(002621) (- 9.08%), Beijing Fengshangshiji Culture Media Co.Ltd(300860) (- 8.90%).
Core view:
According to the definition of prefabricated dishes, it refers to the finished or semi-finished products made of agricultural, livestock, poultry and aquatic products as raw materials, supplemented with various auxiliary materials and pre processed (such as cutting, mixing, pickling, rolling, forming and seasoning). Since the outbreak, Jingdong seven fresh food, meituan buying vegetables, hungry, box horse, daily excellent fresh food and dingdong buying vegetables have successively entered the Bureau’s Prefabricated vegetable market. For b-end catering enterprises, affected by the epidemic, the operation is difficult, and the production cost of prefabricated dishes is low and the profit margin is higher; For C-end consumers, the epidemic has given birth to the “house economy”. Prefabricated dishes have the advantages of convenience, quickness and diverse tastes. They have become a new favorite on more and more family tables, and their sales have increased greatly.
Investment suggestion: with the improvement of consumers’ awareness of prefabricated dishes and the cultivation of consumption habits, it is expected to further catalyze the rapid development of the industry. Ncbd data show that the scale of China’s Prefabricated vegetable market will exceed 300 billion yuan in 2021 and is expected to exceed 830 billion yuan by 2025, of which the scale in the C-end market will account for nearly 30%. According to the five year (20212025) work plan of China Cuisine Association, at present, the penetration rate of prefabricated dishes in China is only 10% – 15%, which is expected to increase to 15% – 20% in 2030. In Japan, the penetration rate of prefabricated dishes has reached more than 60%. In China’s catering market, which is similar to Japanese food culture to a certain extent, the penetration rate of prefabricated dishes still has great room for improvement. It is suggested to pay attention to the upstream and downstream industrial chains [ Suzhou Weizhixiang Food Co.Ltd(605089) , Zhengzhou Qianweiyangchu Food Co.Ltd(001215) , Guangzhou Restaurant Group Company Limited(603043) ].
Risk warning: global epidemic control; Regulation of national policies; Industry regulatory risks; Food safety risks.
