Key investment points:
Important announcements of listed companies
Fu Jian Anjoy Foods Co.Ltd(603345) : issue the annual report for 2021, and the net profit attributable to the parent company increased by 13.00% year on year Shanghai Bairun Investment Holding Group Co.Ltd(002568) : issue the report for the first quarter of 2022, and the net profit attributable to the parent company decreased by 29.94% year on year Qianhe Condiment And Food Co.Ltd(603027) : issue the annual report for 2021, and the net profit attributable to the parent company increased by 7.58% year on year. Key industry data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of April 20, 2022, the average price of fresh milk in the main producing areas was 4.18 yuan / kg, unchanged month on month, with a year-on-year decrease of 1.40%.
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 fell along with the market as a whole, and the performance of Baijiu sector was relatively stable, boosted by the performance of Kweichow Moutai Co.Ltd(600519) . In the first quarter of this year, the food and beverage sector continued its downward trend as a whole.
With the opening of the US dollar interest rate hike cycle and geopolitical factors, the liquidity disturbance caused by northward funds has suppressed the formation of the sector. In addition, the repeated epidemic and the slow recovery trend of consumption have led to fluctuations in market sentiment, while in terms of fundamentals, the industry as a whole is still facing upward pressure on costs. In April, with the continuous adjustment of the sector, the valuation of some leading segments has been close to the low point in the past decade, and the investment value has appeared. The demand for quick-frozen food and prefabricated vegetables under the catalysis of the epidemic has increased, making the sector open the short-term repair market. At the current time point, we believe that each fine molecule industry has configuration value, and we suggest continuous attention. In terms of sectors, high-end Baijiu with greater certainty is still recommended. In terms of popular products, it is suggested to select the dairy industry with downward cost determination during the year and the beer sector with relatively better competition pattern and smoother pressure transmission.
The beer sector will continue to benefit from the gradual recovery of consumption scenes after the epidemic, with the positive impact of price increase and high-end products, and high growth is expected. To sum up, we temporarily give the industry a “neutral” investment rating, and recommend Kweichow Moutai Co.Ltd(600519) ( Kweichow Moutai Co.Ltd(600519) ), Angel Yeast Co.Ltd(600298) ( Angel Yeast Co.Ltd(600298) ), 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
