Important announcements of listed companies
Ligao Foods Co.Ltd(300973) : Announcement on the signing of the contract for the transfer of the use right of state-owned construction land by the company
Chongqing Fuling Zhacai Group Co.Ltd(002507) : Announcement on the change of controlling shareholder’s equity structure and the completion of relevant industrial and commercial registration changes
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) : Announcement on purchasing structured deposits
Industry key data tracking
In terms of dairy products, the price of fresh milk fell slightly. As of May 11, 2022, the average price of raw and fresh milk in the main producing areas was 4.16 yuan / kg, with a slight decrease month on month and a year-on-year decrease of 1.70%.
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, the bottom of pork prices rebounded slightly. As of May 6, 2022, the prices of piglets, live pigs and pork in 22 provinces across the country have reached 31.24 yuan / kg, 14.99 yuan / kg and 21.88 yuan / kg respectively, with year-on-year changes of – 50.55%, – 3.54% and – 17.68% respectively.
Investment advice
This week, the food and beverage sector as a whole maintained a volatile trend. As the epidemic situation in Shanghai is cleared at the social level, life and production are expected to gradually get on track, and the consumption scene is expected to gradually recover. Since the beginning of the year, with the continuous adjustment of the sector and the full release of negative factors, the leading valuations in some subdivided fields have become very attractive. At the current time point, we believe that each fine molecule industry has configuration value, and we suggest continuous attention. In terms of industry, high-end Baijiu with greater certainty is still recommended. In terms of popular products, it is still recommended to optimize the dairy industry with downward cost determination during the year and the beer sector with relatively better competition pattern and smoother pressure transmission. Due to the superposition of the scenario of high-end beer consumption and the gradual recovery of high-end products, it will benefit from the positive impact of the epidemic situation. 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.
