Food and beverage industry 2021 annual report and 2022 first quarter results overview: overall performance is solid, internal differentiation still exists_Oriental Fortune Network

Investing points:

The overall is still stable, and the internal differentiation is obvious

2021,food and drink(CITIC) sector achieved a total ofOperating income901.898 billion yuan, a year-on-year increase of 11.01%net profit156.871 billion yuan, a year-on-year increase of 9.79%, and the overall growth of the industry is in line with expectations.Judging from the data, the overall revenue growth rate of the sector slightly exceeds the net profit growth rate, or the high upstream cost may affect the company’s operation.performancerelated. From the perspective of sub-sector revenue growth, the top three are non-dairy beverages (22.60%) > other wines (19.20%) > liquor (17.90%); and in terms of net profit growth, dairy products (44.31%) > beer (28.09%)>Non-dairy beverages (18.87%). The overall operation of alcohol is better than that of popular food, mainly due to the strong cost transfer ability of liquor and beer, and the limited space for price increase of popular food as a must-have consumption, so it is under pressure from upstream raw material costs.

Optional is better than required Alcohol is better than food

2022Q1，food and drinkThe (CITIC) segment achieved a total operating income of 270.915 billion yuan, a year-on-year increase of 7.23%, and realized a net profit attributable to the parent of 59.618 billion yuan, a year-on-year increase of 15.84%. Under the dual pressure of the economy and the epidemic, the industry still achieved a good start. From the perspective of sub-sector revenue growth, the top three are liquor (19.36%)>dairy products (11.77%)>quick-frozen food (9.72%); and in terms of net profit growth, quick-frozen food (31.93%)> liquor ( 26.28%) > dairy products (22.34%). On the whole, optional consumption is less affected by cost, and the price transmission is smoother, so the overall performance is better than that of mandatory consumption.

Investment Advice

In the first quarter of this year,food and drinkThe sector as a whole continued its downward trend. With the opening of the US dollar interest rate hike cycle and geopolitical factors, the liquidity disturbance caused by northbound funds has suppressed the sector. In addition, the repeated epidemics and the slow consumption recovery trend have led to fluctuations in consumer investment sentiment, and the industry as a whole is still facing upward pressure on costs. Entering April, with the continuous adjustment of the sector, the valuation of the leading players in some sub-sectors has been close to the low in the past ten years, and the investment value has appeared. The demand for quick-frozen food and prepared dishes catalyzed by the superimposed epidemic has increased, which has caused the sector to start a short-term repair market. With the end of the disclosure of the performance report, although the performance of the food and beverage sector has been differentiated, the overall performance is still stable. At the current point in time, we believe that each sub-industry already has configuration value, and we recommend continuing to pay attention. In terms of plates, high-end liquor with more certainty is still recommended. In terms of popular products, it is recommended to choose the dairy industry where the cost is determined to decline during the year and the beer sector with a relatively better competitive landscape and smoother pressure transmission. The beer sector will continue to benefit from the gradual recovery of post-epidemic consumption scenarios, plus the positive effects of price increases and high-end products, and high growth can be expected.In summary, we temporarily give the industry a “neutral” investment rating and recommendKweichow Moutai(600519)、Angel yeast(600298)、Fuling mustard(002507)、chongqing beer(600132) andYili Shares(600887)。

risk warning

Macroeconomic downside risks, major food safety risks, and unclear trend of consumption recovery

(Article source: Bohaisecurities）

Article source: Bohai Securities

Responsible editor: 91

Original title: Food and beverage industry 2021 annual report and 2022 first quarter performance overview: overall performance is solid, internal differentiation still exists