On May 23, the dairy sector rose after opening. As of the closing, Hithink Royalflush Information Network Co.Ltd(300033) data showed that the sector rose 2.76% as a whole, rising for the second consecutive trading day. Specifically, 25 stocks in the sector rose, accounting for more than 80%. Sunshine Dairy rose strongly by the limit, Xinjiang Western Animal Husbandry Co.Ltd(300106) , Beingmate Co.Ltd(002570) , Royal Group Co.Ltd(002329) , Pengdu Agriculture & Animal Husbandry Co.Ltd(002505) and other stocks also rose by more than 5%.
At the same time, market funds also actively poured into dairy stocks for layout. On May 23, 18 dairy stocks showed the trend of net inflow of main capital, with a total net inflow of 239 million yuan. The net inflow of main capital of Beijing Dabeinong Technology Group Co.Ltd(002385) , Beingmate Co.Ltd(002570) , Pengdu Agriculture & Animal Husbandry Co.Ltd(002505) , Wens Foodstuff Group Co.Ltd(300498) and other four stocks exceeded 20 million yuan, and the total net inflow of main capital of the above four stocks was 190 million yuan.
In this regard, Liu Youhua, deputy director of wealth Research Department of paipaipai.com, said in an interview with the Securities Daily that the strength of the dairy sector today is mainly due to Eric, mayor of New York City on May 22 local time. Adams signed an emergency executive order declaring that the city had entered a state of emergency due to a shortage of infant formula. This has exposed that the “milk powder shortage” in the United States has become more and more serious. The “milk powder shortage” originally caused by the epidemic shows signs of further aggravation after the safety problems exposed by the largest milk powder supplier in the United States, which provides a very good opportunity for China’s milk powder to improve its market share and expand its overseas market, and Chinese milk powder suppliers are expected to benefit from it. In the long run, driven by the continuous improvement of residents’ health awareness, the aging population and the liberalization of the three child policy, the market demand of the dairy industry will maintain a steady growth.
For the competition status of the dairy market, Kaiyuan Securities said that the competition in the dairy industry is still relatively rational. First, the supply and demand environment of raw milk is relatively loose, and the basic white milk is promoted in stages; Secondly, the recent promotion of high-end milk has been relatively stable, mainly through online platforms such as jd.com and hungry. The three parties jointly carry out short-term promotion of product portfolio on major holidays. Looking forward to the whole year, the price of raw milk is expected to remain high, and the leading enterprises give priority to profit orientation. It is expected that the overall industry competition is still relatively flat.
In terms of performance, 13 companies in the dairy sector achieved year-on-year growth in net profit attributable to parent companies in the first quarter of this year, accounting for 44.83%. Among them, Royal Group Co.Ltd(002329) , Henan Kedi Dairy Co.Ltd(002770) , Shanghai Milkground Food Tech Co.Ltd(600882) , Xinjiang Talimu Agriculture Development Co.Ltd(600359) net profit attributable to parent companies in the first quarter of this year increased by more than 100% year-on-year, and the performance was bright.
Hao Xinming, manager of Fangxin wealth investment fund, told reporters that as one of the resilient consumer goods since the outbreak of the global epidemic, the mismatch between supply and demand in the industry has pushed up the price of imported milk, and the price of raw milk in China has risen to an all-time high. However, with the gradual recovery of the economy, it is expected that the upward space of mainland milk prices is limited, the logical duration of price rise is not expected to be too long, and the industry tends to be more integrated. Therefore, the dairy industry with large-scale pastures and diversified products can maintain double-digit sales growth.
In terms of investment opportunities, Zhao Yuanyuan, investment director of Jianhong times, told reporters that the dairy sector currently has double positive support in terms of fundamentals and capital, and is expected to achieve excess returns in the next few weeks. In terms of fundamentals, the United States has increased imports due to a serious shortage of milk powder. This year, the rise in feed and transportation costs has also created conditions for the rise in the price of dairy products. In terms of capital, the recent weakening of the US dollar may increase the inflow of foreign capital and support individual food and beverage related stocks. For dairy stocks, investors are recommended to participate in stages.
Soochow Securities Co.Ltd(601555) pointed out in its research report that dairy products have strong mandatory attributes and strong certainty of leading profits. Under the epidemic situation, the terminal demand of dairy products is strong against the trend, the supply side is damaged, and the dynamic sales are affected in the short term, but the leading enterprises show strong anti risk ability. Dairy enterprises feed back that the cost pressure will slow down in 2022 and will pay attention to the efficiency of cost investment.
In the last month, 15 stocks in the dairy sector were rated as “buy” or “overweight” by institutions, accounting for more than 50%. Among them, Inner Mongolia Yili Industrial Group Co.Ltd(600887) has received the most favorable ratings for 32 times, and Wens Foodstuff Group Co.Ltd(300498) , Beijing Dabeinong Technology Group Co.Ltd(002385) , New Hope Dairy Co.Ltd(002946) , Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) and other stocks have received favorable ratings for 7 times or more.
Table: list of individual stocks with an increase of more than 2% in the dairy sector on May 23 p align = “center” prepared by Chu Lijun
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