This week, Sichuan composite index rose 0.35%, while Chongqing composite index fell 3.94%.
As of April 29, 2022, the PE of Sichuan sector is 27.82 times, and the overall valuation level has decreased; The PE of Chongqing sector is 16.93 times, and the overall valuation level has decreased. By industry, the top three sectors in Sichuan and Chongqing this week were real estate (+ 2.51%), architectural decoration (- 0.80%) and banks (- 2.09%). From the perspective of listed companies, the top three gainers are Cccg Real Estate Corporation Limited(000736) (+ 45.95%), Sichuan Dawn Precision Technology Co.Ltd(300780) (+ 19.30%), Sichuan Teway Food Group Co.Ltd(603317) (+ 17.78%); The top three declines were ST Changdong (- 68.93%), Landun Technology (- 24.64%) and Youyou Foods Co.Ltd(603697) (- 22.59%). The 42 listed companies we focus on in Sichuan and Chongqing fell by an average of 2.08%, and the top three were: Sichuan Teway Food Group Co.Ltd(603317) (+ 17.78%), Mianyang Fulin Precision Co.Ltd(300432) (+ 16.78%), Tongwei Co.Ltd(600438) (+ 11.59%); The top three declines were: Sichuan Furong Technology Co.Ltd(603327) (- 15.24%), D&O Home Collection Co.Ltd(002798) (- 14.19%), Sichuan Jinlu Group Co.Ltd(000510) (- 12.99%).
Pay attention to the performance of food and beverage sector in Sichuan and Chongqing.
Qianhe Condiment And Food Co.Ltd(603027) released the report for the first quarter of 2022. In the first quarter, the company achieved an operating revenue of 482 million yuan, a year-on-year increase of 0.93%, and a net profit attributable to shareholders of listed companies of 55 million yuan, a year-on-year increase of 38.47%. With the gradual weakening of the impact of community group buying on the sales end of the industry and the price increase of seasoning products, the pressure on the profitability of the company caused by the rise in the price of upstream raw materials is expected to be gradually relieved, and the performance of the company in the first quarter of 2022 continues to improve significantly. At the same time, the company’s production expansion plan is advancing smoothly. In the future, with the continuous release of new production capacity, it will provide power for the company’s performance to maintain good growth. As the scissors gap between PPI and CPI is gradually reduced, the pressure on the cost side is gradually reduced, and the price increase of superimposed condiments is gradually transmitted to the terminal, the profits of condiment enterprises will be effectively repaired. It is suggested to pay attention to large condiment enterprises in Sichuan and Chongqing:
Qianhe Condiment And Food Co.Ltd(603027) , Sichuan Teway Food Group Co.Ltd(603317) etc.
In the first quarter, high-end and sub high-end Sichuan wine made a good start.
Luzhou Laojiao Co.Ltd(000568) released the annual report of 2021 and the quarterly report of the first quarter of 2022. The company’s performance achieved rapid growth and Guojiao Tequ double brands continued to develop. Among them, in 2021, the company realized an operating revenue of 20.642 billion yuan, a year-on-year increase of 23.96%, and a net profit attributable to the parent company of 7.956 billion yuan, a year-on-year increase of 32.47%; In the first quarter of 2022, the company realized an operating revenue of 6.312 billion yuan, a year-on-year increase of 26.15%, and a net profit attributable to the parent company of 2.876 billion yuan, a year-on-year increase of 32.72%. On the one hand, the company focused on the strategy of “double brands, three lines and large single products”. The value of the core single product Guojiao 1573 continued to improve. Tequ and Jiaoling stood firm in the middle-end product price band. At the same time, it also launched Luzhou Laojiao Co.Ltd(000568) 1952 to enrich the secondary high-end product line. On the other hand, through fine management, the sales expense rate and management expense rate of the company maintained a downward trend, and the profitability maintained a stable improvement. China’s economy maintained steady growth in the first quarter, and its consumption has strong resilience. It is optimistic that Baijiu consumption is expected to recover steadily after the follow-up epidemic. It is suggested to pay attention to high-end Baijiu enterprises in Sichuan and Chongqing, with related targets: Wuliangye Yibin Co.Ltd(000858) Luzhou Laojiao Co.Ltd(000568) Luzhou Laojiao Co.Ltd(000568) .
Risk tip: macroeconomic growth is lower than expected, covid-19 epidemic continues to be at risk, and consumption recovery is lower than expected.
