Talk every Monday
The prefabricated vegetable sector has ushered in an outbreak. Many companies have increased significantly this month, Zhanjiang Guolian Aquatic Products Co.Ltd(300094) , Fortune Ng Fung Food (Hebei) Co.Ltd(600965) , Shandong Huifa Foodstuff Co.Ltd(603536) , Shandong Delisi Food Co.Ltd(002330) , China Quanjude(Group) Co.Ltd(002186) and so on.
On the one hand, the sharp rise in the stock price of prefabricated vegetables comes from the high prosperity of the industry and investors’ expectations of market space and high growth rate; On the other hand, it also comes from the short-term pursuit of funds. Considering that the competition pattern of the industry is not clear and the enterprises lack a strong moat, it is suggested to pay appropriate attention to the risks of overestimation and poor performance while embracing the high outlook.
Market Review
Last week, the food and beverage index fell by – 4.4%, ranking 24 among the 28 industries of Shenwan, outperforming the CSI 300 index by 2.42pct, and other foods (+ 5.01%) in the sub industries performed better.
Top 5 gainers of individual stocks: Haixin Foods Co.Ltd(002702) , Shandong Delisi Food Co.Ltd(002330) , Tonghua Grape Wine Co.Ltd(600365) , Springsnow Food Group Co.Ltd(605567) , Shandong Huifa Foodstuff Co.Ltd(603536)
Top 5 stocks with declines: Shanghai Bairun Investment Holding Group Co.Ltd(002568) , Beijing Shunxin Agriculture Co.Ltd(000860) , Eastroc Beverage (Group) Co.Ltd(605499) , Shede Spirits Co.Ltd(600702) , Jiugui Liquor Co.Ltd(000799)
Investment strategy
Key recommendation: freeze baking leader Ligao Foods Co.Ltd(300973) with leading technical level, continuous optimization of channel structure and improved permeability; It is suggested to pay attention to: the industry leader Shanghai Bairun Investment Holding Group Co.Ltd(002568) in the pre blending industry with fast growth, high market share and strong performance growth; Moderately pay attention to the prefabricated vegetable industry with high prosperity and popular funds.
