Food and beverage: social zero is significantly affected by the epidemic, and pays attention to the leading companies in the high boom track and the safety margin of underestimated value. In March, the total retail sales of social consumer goods reached 3423.3 billion yuan, a year-on-year decrease of 3.5%, which was significantly affected by the epidemic. Since March, the epidemic has been repeated everywhere, and large-scale epidemics have also occurred in first tier cities such as Shanghai and Shenzhen, which has once again impacted the retail and catering scene, and the catering demand may be under pressure again. The catering revenue in March was 293.5 billion yuan, a year-on-year decrease of 16.4%. Affected by the Russian Ukrainian war, the reduction of production in South America, the global epidemic and other factors, the cost of food and beverage raw materials is still at an all-time high, and there is still an upward trend in the short term, putting pressure on the profits of the industry. At present, the food and beverage sector has experienced a major correction, and the valuation has fallen back to a reasonable range. We suggest paying attention to the leading companies in the high boom track and the safety margin of undervalued value. We recommend Kweichow Moutai Co.Ltd(600519) , Inner Mongolia Yili Industrial Group Co.Ltd(600887) , Chongqing Brewery Co.Ltd(600132) , and Chacha Food Company Limited(002557) , Chongqing Fuling Zhacai Group Co.Ltd(002507) .
Agriculture, forestry, animal husbandry and Fishery: feed prices are running at a high level, and companies in land seed related fields are concerned. In terms of feed price, the high feed price in 2022 raised the downstream breeding cost and exacerbated the cash flow pressure of farmers. In terms of pig breeding, pig prices have fallen significantly since the beginning of 2021. The industry has continued to reduce production capacity since June 2021. At present, it is still in a state of deep loss, and production capacity is expected to accelerate under cost pressure. Looking forward to the future, we expect that the pig supply is still in the release period, the pig price will continue to be under pressure, and the industry is expected to usher in an inflection point from the second half of 2022 to 2023. At the investment level, we recommend land and seed related companies, and suggest paying attention to Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) , Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Winall Hi-Tech Seed Co.Ltd(300087) , and the leader of pig breeding Muyuan Foods Co.Ltd(002714) .
