Important announcements of listed companies
Beijing Shunxin Agriculture Co.Ltd(000860) : the annual performance express of 2021 was released, and the net profit attributable to the parent decreased by 75.64% year-on-year
Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) : the annual report of 2021 was released, and the net profit attributable to the parent company increased by 22.34% year-on-year
Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) : the 2021 annual report was released, and the net profit attributable to the parent company increased by 29.50% year-on-year
Industry key data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of April 13, 2022, the average price of fresh milk in the main producing areas was 4.18 yuan / kg, which was basically the same month on month, with a year-on-year decrease of 1.90%.
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 continued to rise slightly, but the internal structure differentiation was obvious. Among them, the overall performance of mass products represented by quick-frozen food was better than that of alcohol. Since the beginning of the year, the sector has been continuously affected by northward capital outflow, upward pressure on costs and disturbance of the epidemic, and its overall performance has been poor. However, as the sector continues to decline, we should also pay attention to that some leading valuations in high-quality segments have long-term investment value. On the sector side, we still recommend that we should focus on the more definite high-end Baijiu in the long term, 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 suggested 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. In addition, the demand for home storage has increased under the epidemic. In the short term, it is suggested to pay attention to the quick-frozen food and prefabricated vegetables. 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.
