Industry core view:
Last week (April 11, 2022 to April 17, 2022), the Shanghai Composite Index fell by 1.25%, and the Shenwan food and beverage index rose by 4.40%, outperforming the Shanghai Composite Index by 5.65 percentage points, ranking second among the 31 Tier-1 sub industries of Shenwan. In the food and beverage sector last week, except for health products (- 1.10%), all other sub sectors rose. In March, the consumption price of alcohol increased by 1.7% year-on-year; In the first ten days of April, the national Baijiu price index rose 0.06%, of which the famous liquor chain index rose by 0.12%. Kweichow Moutai Co.Ltd(600519) actively expand online channels, and the e-Direct selling platform I Maotai microblog and wechat were officially launched. “Two micro” and app together constitute the “two micro ends” of I Maotai Wuliangye Yibin Co.Ltd(000858) landing, quality improvement and efficiency enhancement project. The first phase of the project started this month, with a total investment of more than 20 billion yuan and a planned land area of about 3250 mu. 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 popular food, a number of enterprises achieved brilliant business performance in the first quarter of 2022: Toly Bread Co.Ltd(603866) achieved a year-on-year increase of 9.43% in operating revenue Shandong Delisi Food Co.Ltd(002330) 2022 in the first quarter, the net profit attributable to shareholders of listed companies increased by 35.71% – 50.25% over the same period of last year. Yili smart milk factory will be steadily put into operation in the modern market Chacha Food Company Limited(002557) continuous intensive cultivation of channels with large sinking space. Suggestions: Baijiu Baijiu Baijiu (Baijiu): Liquor: high-end liquor is stable in the market, continuous reform, and the growth of the second high-end liquor is large. It is suggested that the high-end and secondary liquor allocation opportunities should be focused on; 1. 2) Beer: the process of high-end and standardization of beer development 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 logic of price increase in the popular food industry driven by the cost is expected to continue to be verified. It is suggested to pay attention to the leaders of popular food such as condiments and snacks.
Key investment points:
Baijiu weekly: last week, the Baijiu sector rose 3.68%, of which Gansu Huangtai Wine-Marketing Industry Co.Ltd(000995) (+13.14%), Luzhou Laojiao Co.Ltd(000568) (+10.51%) and Anhui Yingjia Distillery Co.Ltd(603198) (+10.21%) rose by three. Kweichow Moutai Co.Ltd(600519) rose 1.23%, and Wuliangye Yibin Co.Ltd(000858) rose 5.80% Kweichow Moutai Co.Ltd(600519) : last week, the price of Maotai remained unchanged. For 20 years, the price of Feitian Maotai remained at 2950 yuan / bottle, and the price of Feitian bulk bottle remained at 2700 yuan / bottle. I Maotai’s “two micro enterprises” went online. I officially launched the official Moutai and micro-blog official account in April 11th. Relying on Tencent wechat platform and Sina Weibo respectively, the “two wechat” in Maotai have the unified certification name of “Xiaomao I Maotai”, the main body of certification is Kweichow Moutai Co.Ltd(600519) , and the trademark of “Maotai” has been protected. With the launch of “two micro enterprises” in Maotai, “two micro enterprises” and app together constitute the “two micro ends” of Maotai, which will be the starting matrix of Maotai’s authoritative information. They will voice at the same frequency, continuously innovate services through text, pictures and videos, respond to consumers’ concerns and interact with consumers online in a timely manner. Zunyi City and Maotai Group deepen cooperation. Zunyi released the news on April 13. On that day, Zunyi City and Maotai Group held a symposium on deepening cooperation and exchange. Ding Xiongjun, secretary and chairman of Moutai group, said that Moutai group will work together with the Zunyi Municipal Committee and municipal government to further deepen cooperation in creating the world Maotai Baijiu industrial base, protecting the ecological environment in Chishui River Basin, promoting the integration of wine and tourism, and the operation of Zunyi Research Institute of Jiangnan University, and jointly create a new situation of mutual benefit and common development.
970 yuan / bottle, and the price of puwu (seventh generation) fell slightly to 965 yuan / bottle. The first phase of the high-quality multiplication project was started. On April 12, Yibin Daily reported that the first phase of Wuliangye Yibin Co.Ltd(000858) high quality multiplication project was started on April 9. The total investment of the project has exceeded 20 billion yuan, and the planned land is about 3250 mu. Among them, phase I project is located in Hongba area of Wuliangye Yibin Co.Ltd(000858) Jiangbei Park, with a total investment of about 1.4 billion yuan and an area of about 335 mu. The site leveling work is currently under way. According to the project layout of Wuliangye Yibin Co.Ltd(000858) high quality multiplication project, during the “14th five year plan” period, Wuliangye Yibin Co.Ltd(000858) will adhere to the combination of tapping potential and capacity expansion. According to the capacity planning of “2 + 2 + 6”, 100000 tons of pure grain solid-state fermentation high-quality raw wine capacity will be added, and the total capacity of ecological brewing base will exceed 200000 tons Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) : the net profit in the first quarter increased by more than 70% in advance. On April 11, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) released the main financial data of 2021 and the announcement of operation in the first quarter of 2022. The announcement shows that in 2021, the company achieved a total operating revenue of 19.971 billion yuan, a year-on-year increase of 42.75%, and a net profit of 5.314 billion yuan, a year-on-year increase of 72.56%. In the first quarter of 2022, the company expects to achieve a total operating revenue of about 10.5 billion yuan, an increase of about 43% year-on-year; The net profit is expected to be about 3.7 billion yuan, an increase of about 70% year-on-year Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) : the net profit in 2021 is 2.029 billion yuan. On April 15, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) issued the annual report for 2021. During the reporting period, the company achieved an operating revenue of 6.406 billion yuan, a year-on-year increase of 25.12%; The net profit was 2.029 billion yuan, a year-on-year increase of 29.50%. From the perspective of business structure, the product structure continues to be optimized. “Special a + Category” products (referring to products with a factory guidance price of more than 300 yuan including tax) account for more than 65% of the revenue and 82.6% of the gross profit margin Jinhui Liquor Co.Ltd(603919) : the Internet sales company has obtained a business license. On April 12, Jinhui Liquor Co.Ltd(603919) issued an announcement on the progress of foreign investment in the establishment of Internet sales companies. According to the announcement, Beijing Shengshi Jinhui Technology Co., Ltd. has obtained the business license issued by Beijing Haidian District market supervision and Administration Bureau, with a registered capital of 10 million yuan. Its business scope includes technical services, food sales, Internet sales, information consulting services, personal internet live broadcasting services, food Internet sales (only pre packaged food), import and export of goods, import and export of technology, import and export agency, liquor business, etc.
Other sectors of food and beverage:
Beer: Tsingtao Brewery Company Limited(600600) : Guo xiuzhang, chairman of the board of supervisors and shareholder representative supervisor, resigned. On April 13, Tsingtao Brewery Company Limited(600600) announced that Tsingtao Brewery Company Limited(600600) board of supervisors received a written resignation report from Mr. Guo xiuzhang, chairman of the board of supervisors of the company, on April 13, 2022. Mr. Guo xiuzhang applied to resign as chairman of the 10th board of supervisors and shareholder representative supervisor of the company due to job changes.
Dairy products: Yili Group: Yili modern smart health Valley liquid milk factory will be put into operation. Hohhot makes every effort to build a “100 billion level dairy industry cluster” and strides forward to the “World Dairy capital”. At present, the filling production line of Yili modern smart health Valley liquid milk factory under construction has entered the final stage of equipment installation. The plant is planned to be put into operation at the end of May. After completion and operation, it can process 6500 tons of fresh milk a day, becoming the largest single plant in the world.
Snack food: Cha Cha food: Chacha Food Company Limited(002557) continuous intensive cultivation through channels, with large sinking space. Recently, Chacha Food Company Limited(002557) announced that the company had nearly 120000 terminals at the end of last year and will continue to expand in the future. The model is still under exploration and is constantly iterative. Moreover, the company said that through intensive cultivation through channels, the market distribution rate, store activity rate and monthly per capita output will gradually increase, and there is still a large sinking space and opportunity in the northern market and third and fourth tier cities in the future.
Risk factors: 1 Policy risk 2 Food safety risk 3 Epidemic risk 4 Risk of economic growth falling short of expectations
