Important announcements of listed companies
Toly Bread Co.Ltd(603866) : the announcement of performance express in the first quarter of 2022 was released, and the net profit attributable to the parent decreased by 2.80% year-on-year
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) : release the main financial data of 2021 and the announcement of main business conditions in the first quarter of 2022. It is expected that the net profit attributable to the parent company in the first quarter of 2022 will increase by about 70% year-on-year
Chacha Food Company Limited(002557) : the annual report of 2021 was released, and the net profit attributable to the parent company increased by 15.35% year-on-year
Industry key data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of April 6, 2022, the average price of fresh milk in the main producing areas was 4.17 yuan / kg, unchanged month on month, with 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 8, 2022, the prices of piglets, live pigs and pork in 22 provinces in China have reached 24.25 yuan / kg, 12.42 yuan / kg and 19.50 yuan / kg respectively, with year-on-year changes of 71.58%, – 35.78% and – 39.89% respectively.
Investment advice
This week, the food and beverage sector was repaired as the inflection point of the epidemic approached, and the industries damaged due to the lack of consumption scene rebounded significantly in the early stage. 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. As the valuation of the leading sector continues to decline, we should also pay attention to the long-term value of the leading sector. 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 select the dairy industry with controllable cost during the year and the beer sector with relatively better competition pattern and smoother pressure transmission. With the turning point of the epidemic approaching and the peak season approaching, the beer sector will continue to benefit from the gradual recovery of consumption scenes after the epidemic, superimposed with the positive impact of price increases and high-end products, and high growth can be 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.
