Talk every Monday:
Chongqing Brewery Co.Ltd(600132) : the wind is good and the sails are sailing with the help of strength
Chongqing Brewery Co.Ltd(600132) is Carlsberg’s core beer platform in China Chongqing Brewery Co.Ltd(600132) is one of the earliest listed beer enterprises in China. Carlsberg acquired the equity of Chongqing Brewery Co.Ltd(600132) in three times in the five years from 2008 to 2013, becoming the holding parent company of Chongqing Brewery Co.Ltd(600132) . After the acquisition, Carlsberg divided part of its beer assets into two packages a and B and injected them into Chongqing Brewery Co.Ltd(600132) .
Carlsberg is the world’s leading brewing group. Its holding of Chongqing Brewery Co.Ltd(600132) can help heavy beer impact the leading position of China’s beer industry. Carlsberg group is an old beer manufacturer founded in 1847, with more than 140 core brands. Its beer output accounts for 6.1% of the world, ranking third in the world; Carlsberg brand ranks 69th in the world brand list and 1st in the beer industry.
China is Carlsberg’s most important market. In 2020, Carlsberg Asia’s sales volume / revenue / profit accounted for 31% / 29% / 36% of Carlsberg group respectively. Carlsberg China is the largest and fastest-growing market in the Asia Pacific region.
Carlsberg helps Chongqing Brewery Co.Ltd(600132) improve business efficiency.
Management talent empowerment and product structure upgrading. From 2013 to 2015, it mainly focused on the personnel adjustment of Chongqing Brewery Co.Ltd(600132) to optimize the internal governance level. After 2014, focus on improving the product structure, start to eliminate low-grade products, and upgrade Chinese brands; Introduce international brands, layout in super high-end, high-end and middle-end, and improve the overall price band of products; Improve packaging methods and vigorously promote the upgrading of packaging from bottle to can.
Increase marketing efforts and promote channel reform. Enhance brand potential through the combination of online and offline. In terms of channels, optimize the structure of the sales team, implement the market-oriented reform of salary and treatment, and stimulate the organizational vitality of employees.
Strengthen brand strength and promote the process of high-end. In 2016, the company released the “sail 22” plan and put forward strategies such as “strengthening core brands”, streamlined the brand portfolio and further accelerated the high-end of the company’s products. This is reflected in the continuous improvement of the ton price of the company’s products, the proportion of high-end products and the corresponding continuous improvement of the company’s gross profit margin.
Since 2013, China’s beer production and sales have generally shown a significant downward trend, and high-end is the only way for the beer industry. Therefore, we are optimistic about Chongqing Brewery Co.Ltd(600132) , which has leading ton price, strong brand power, optimized production capacity and strong operation management level. I believe that in the new stage of the beer industry, the company is expected to set sail and sail to a broader world.
Market Review
In the last week, the food and beverage index rose or fell by 4.4%, ranking first among the 28 industries in Shenwan, outperforming the Shanghai and Shenzhen 300 index by 5.39pct. Among the sub industries, pre processed food (+ 18.93%), beer (+ 9.06%%), and baked goods (+ 8.42%) increased more.
Top 5 gainers of individual stocks: Shandong Huifa Foodstuff Co.Ltd(603536) , Zhengzhou Qianweiyangchu Food Co.Ltd(001215) , Suzhou Weizhixiang Food Co.Ltd(605089) , Fu Jian Anjoy Foods Co.Ltd(603345) , Haixin Foods Co.Ltd(002702)
Top 5 stocks with declines: V V Food & Beverage Co.Ltd(600300) , Zhejiang Huatong Meat Products Co.Ltd(002840) , Jinzi Ham Co.Ltd(002515) , Cabio Biotech (Wuhan) Co.Ltd(688089) , St Cody
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) .
