Market review of this week: from January 10 to January 14, 2022, SW food and beverage industry index fell by 4.40% as a whole, ranking the fifth among all Shenwan industry indexes, outperforming the CSI 300 index by about 2.42 percentage points in the same period. Among the sub sectors, only the baked food sector and the pre processed food sector outperformed the CSI 300 index in the same period, and the other sectors outperformed the CSI 300 index in the same period.
Net inflow of land stock connect this week: from January 10 to January 14, 2022, land stock connect had a total net inflow of RMB 7.445 billion. Among them, the net inflow of power equipment, banking and non-ferrous metals sector ranks first, and the net outflow of non bank finance, medicine, biology and household appliances sector ranks first. This week, the food and beverage sector had a net outflow of 242 million yuan, ranking the 11th in the Shenwan industry.
Important data tracking: Baijiu sector: the price of Feitian declined this week, and the 1573 price of eight Dai Pu five and the national cellar kept unchanged. Condiment sector: the price of soybean meal increased this week, and the price of white granulated sugar and glass decreased. Beer sector: barley and corrugated paper prices remained unchanged this week, glass prices decreased and aluminum ingot prices increased. Dairy sector: the price of raw and fresh milk has decreased. Meat products: pork prices fell this week.
View of Industry Week: Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) 2021 will be completed successfully and the high certainty sector will be grasped. Baijiu sector: Baijiu Baijiu liquor consumption tax, repeated epidemic, Ministry of industry and young people and foreign consumer groups to develop low alcohol consumption and other factors, Baijiu sector continued weak trend this week. Baijiu sector is mainly disturbed by market sentiment in the short term, and there are no substantive problems on the fundamentals of liquor companies. This week Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) released the annual performance forecast, which ended successfully in 2021. It is expected that the operating revenue will increase by 23% – 27% year-on-year, the net profit attributable to the parent will increase by 21% – 34% year-on-year, and the net profit excluding non attributable to the parent will increase by 22% – 35% year-on-year. The performance is in line with the expectation. In addition, Maotai will launch new products after the release of rare Maotai liquor and the year of the tiger Zodiac Maotai. Maotai 1935 will be officially launched on January 18, and the product structure will be further optimized and upgraded. The market can view the recent correction of the sector rationally. In terms of the target, we recommend continuous attention to the high-end Baijiu Kweichow Moutai Co.Ltd(600519) (600519), Wuliangye Yibin Co.Ltd(000858) (000858) and Luzhou Laojiao Co.Ltd(000568) (000568). In the secondary high-end wine, you can pay attention to Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) (600809), Jiugui Liquor Co.Ltd(000799) (000799), etc; Regional liquor can focus on companies with greater recovery elasticity, such as Anhui Gujing Distillery Company Limited(000596) (000596), Anhui Kouzi Distillery Co.Ltd(603589) (603589), Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) (603369). Mass products: this week Toly Bread Co.Ltd(603866) and Tsingtao Brewery Company Limited(600600) successively released the performance forecast for 2021. Affected by rising costs and limited recovery of terminal demand, Toly Bread Co.Ltd(603866) annual profit declined. Tsingtao Brewery Company Limited(600600) q4 under the repeated epidemic situation in many places, the sales volume decreased. At present, the company has great cost pressure, and it needs to continue to pay attention to the marginal improvement brought by the price increase in the future. In terms of subject matter, we can focus on Foshan Haitian Flavouring And Food Company Ltd(603288) (603288), Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) (600872), Qianhe Condiment And Food Co.Ltd(603027) (603027), Tsingtao Brewery Company Limited(600600) (600600), Chongqing Brewery Co.Ltd(600132) (600132), Inner Mongolia Yili Industrial Group Co.Ltd(600887) (600887), Chacha Food Company Limited(002557) (002557), Fu Jian Anjoy Foods Co.Ltd(603345) (603345), etc.
Risk tips: raw material price fluctuation, product price increase less than expected, channel development less than expected, intensified industry competition, food safety risk and macroeconomic downside risk.
