Core Insights - The Chinese soft drink industry has undergone three major development stages: dominance of carbonated drinks, diversified growth, and structural growth [1][2] - The current competitive landscape is intense, with traditional leaders maintaining advantages while emerging segments are also making significant breakthroughs [2][3] - Future trends indicate a shift towards health-oriented and functional products, with high growth potential in bottled water, sugar-free tea, and energy drinks [3][4] Historical Overview - The industry initially saw the dominance of carbonated drinks until the mid-1990s, led by international giants like Coca-Cola and Pepsi [1] - From 1995 to 2014, the market diversified with local brands emerging and consumer demand for various categories increasing [1] - Since 2015, the rise of the middle class has led to differentiated consumption demands, with bottled water and functional drinks continuing to grow [1] Current Landscape - Major players are leveraging "big product iteration and scene penetration" to build competitive advantages, with significant single products emerging in various segments [2] - Key players in bottled water include Nongfu Spring and Master Kong, with respective market sizes of 16 billion and 12.1 billion [2] - The energy drink segment is led by brands like Red Bull and Dongpeng, with market sizes of 20 billion and 13.3 billion respectively [2] Future Trends - The bottled water packaging rate in China is expected to rise from 14.4% in 2023 to 18.9% by 2028, indicating a clear long-term growth trajectory [3] - The sugar-free tea segment is seeing significant growth, with brands like Dongfang Shuye achieving over 10 billion in market size [3] - Energy drinks are expanding into Southeast Asia, with local partnerships being crucial for market penetration [3] Investment Recommendations - Companies like Dongpeng Beverage and Nongfu Spring are recommended for their strong positions in high-growth segments [4] - The focus is on companies that can adapt to health and functional trends while maintaining strong single product capabilities [4] - Attention is also drawn to potential investments in China Resources Beverage and IFBH due to their emerging market presence [4]

证券研究报告·行业深度报告·食品饮料 食品饮料行业深度报告 增持（维持） [Table_Tag] [投资要点 Table_Summary] ◼ 风险提示：宏观经济不及预期；食品安全问题；市场竞争加剧。 2025 年 08 月 21 日 证券分析师 苏铖 执业证书：S0600524120010 such@dwzq.com.cn 证券分析师 郭晓东 执业证书：S0600525040001 guoxd@dwzq.com.cn 行业走势 -10% -6% -2% 2% 6% 10% 14% 18% 22% 26% 2024/8/21 2024/12/20 2025/4/20 2025/8/19 食品饮料 沪深300 软饮料行业深度：后来居上，中国软饮料巨 头的平台化之路 相关研究 《硬折扣系列报告：机遇窗口期，百 舸争流》 2025-07-24 《2025Q2 基金食品饮料持仓分析：持 仓处于低位，白酒明显减配》 2025-07-22 东吴证券研究所 1 / 34 请务必阅读正文之后的免责声明部分 ◼ 观过往：历经三大阶段，品类多元化共振。纵向复盘中国软饮料行业的 发展，大致经历了碳酸饮料主导、多元化增长、结构性增长 ...

Core Viewpoint - The company, Yao Ma Zi Food Co., Ltd., is seeking to go public again after a previous failed IPO attempt, with a focus on expanding its market presence and addressing past regulatory issues [1][4]. Group 1: Company Overview - Yao Ma Zi was established on March 20, 2008, with a registered capital of 132 million yuan, and primarily engages in the research, production, and sales of seasoning oils, compound seasonings, and local specialty foods [2]. - The company has achieved significant revenue growth, with reported revenues of approximately 450 million yuan, 545 million yuan, and 625 million yuan for the years 2022, 2023, and 2024 respectively [6]. Group 2: Ownership and Control - Zhao Yuejun is the controlling shareholder, holding 30.92% of the company, while the Zhao family collectively owns 68.21% of the shares [2]. - Notably, the shareholder list includes Shenzhen Wangju Investment Co., Ltd., a subsidiary of the listed company Juewei Food, which holds 13.68% of Yao Ma Zi [3]. Group 3: IPO Attempts and Regulatory Issues - The company previously attempted an IPO in 2023 but withdrew its application due to strategic adjustments and business development considerations, while also facing regulatory scrutiny for failing to disclose related party transactions [4][5]. - The company received a regulatory letter from the Shenzhen Stock Exchange in 2024 for not disclosing a related party transaction involving 800,000 yuan [5]. Group 4: Financial Performance and Risks - Yao Ma Zi's net profits for the same years were approximately 81.16 million yuan, 98.78 million yuan, and 157 million yuan, indicating a consistent upward trend [6]. - The company heavily relies on its main product, pepper oil, which accounts for over 80% of its main business revenue, posing a risk of dependency on a single product line [6]. - The company's inventory turnover rate is notably low at 1.51 times, compared to 15 other listed companies in the seasoning industry, indicating potential inefficiencies [7].

Investment Rating - The report maintains an "Overweight" rating for the food and beverage industry [3]. Core Insights - The Chinese soft drink industry is transitioning from a growth phase characterized by new product launches to a more competitive environment focused on existing products, making it challenging to cultivate new billion-dollar brands [16][39]. - The report highlights the emergence of health and functional trends in consumer preferences, which are expected to create new market opportunities for innovative products [5][17]. - The industry is witnessing a shift in growth logic from volume-driven to structural upgrades, emphasizing the need for companies to enhance product innovation and channel management capabilities to succeed [18][19]. Summary by Sections Industry Overview - The soft drink sector in China has a vast potential for nurturing billion-dollar products, with notable examples including Red Bull (23.4 billion), Dongpeng Special Drink (17.6 billion), and Wanglaoji (13.8 billion) [4][20]. - The market size for the soft drink industry reached 691.4 billion yuan in 2024, with a compound annual growth rate (CAGR) of 4.0% from 2014 to 2024 [21]. Market Trends - The report identifies a significant trend towards health and functionality in beverages, with a growing demand for low-sugar and functional drinks [5][17]. - The Japanese soft drink market's history of sugar reduction and functionalization serves as a reference for potential developments in China [17]. Competitive Landscape - The competitive dynamics have intensified, with a notable increase in product and channel homogeneity, making it harder to develop new billion-dollar products [41]. - Major players like Nongfu Spring, Uni-President China, and Master Kong are recommended for their strong market positions and innovative capabilities [8]. Future Outlook - Short-term projections indicate that the cost advantages in the industry will continue, benefiting leading companies [18]. - Long-term success will depend on companies' abilities to innovate products and refine channel strategies to capture emerging consumer demands [19].

Investment Rating - The report maintains an "Overweight" rating for the food and beverage sector [7] Core Insights - The Chinese soft drink industry is transitioning from a growth phase characterized by new product launches to a more competitive landscape focused on existing products, with significant challenges in cultivating new billion-dollar products [14][15] - Emerging trends in health and functionality are reshaping consumer preferences, creating opportunities for new product categories such as sugar-free beverages and functional drinks [3][16] - The report emphasizes the importance of product innovation and channel development as key factors for companies to succeed in the evolving market [17][18] Summary by Sections Industry Investment Rating - The food and beverage sector is rated as "Overweight" [7] Industry Overview - The soft drink market in China reached a scale of 6,914 billion yuan in 2024, with a CAGR of 4.0% from 2014 to 2024 [20] - Major billion-dollar products include Red Bull (23.4 billion), Dongpeng Special Drink (17.6 billion), and Wanglaoji (13.8 billion) [15][32] Market Trends - The report identifies a shift towards health and functionality in consumer preferences, with sugar-free and functional beverages gaining traction [3][16] - The health trend began with the introduction of sugar-free drinks in China in 1997, with significant growth noted since 2018 [3][16] Competitive Landscape - The report highlights that the competition in the soft drink industry has intensified, with a focus on product differentiation beyond taste to include packaging, marketing, and functional attributes [18][37] - The market is characterized by a high degree of product and channel homogeneity, making it challenging for new billion-dollar products to emerge [15][37] Investment Recommendations - The report recommends investing in leading companies with strong comprehensive capabilities, such as Nongfu Spring, Uni-President China, and Master Kong [5][9]

Group 1: Investor Relations Activities - The company conducted investor relations activities including specific object research and on-site visits [3] - The activities took place from July 2 to July 3, 2025, at the company meeting room and via Tencent online meeting [3] - Attendees included major financial institutions such as JP Morgan, Goldman Sachs, and UBS Global Asset Management [3] Group 2: Product and Supply Chain Insights - Konjac (魔芋) is primarily grown in specific regions of China, thriving at altitudes between 250-2500 meters, and is sensitive to various environmental conditions [4] - The company ensures raw material supply through equipment leasing, technical support, and order locking with reputable cooperatives and processing plants [5] - The company also imports konjac raw materials from Southeast Asia to supplement local supply [5] Group 3: Market Demand and Product Development - The demand for konjac powder surged in 2024, driven by the growth in leisure food products, tea beverage markets, and deeper applications in food processing [6] - The shelf life of konjac powder is 18 months, while konjac gel can last up to 24 months [7] - Konjac balls offer advantages over traditional tapioca pearls, including lower calories and easier preparation, appealing to younger consumers [8] Group 4: Future Market Potential - The tea beverage market is seen as having significant potential, particularly among young consumers with high coverage and repurchase rates [9] - Future product development plans include ready-to-eat frozen products and new ingredients for beverages and dairy products, aligning with consumer health trends [9] - The konjac industry is expected to explore markets focused on health, functionality, and sustainability, including low-calorie meal replacements and biodegradable materials [11]

Core Viewpoint - The special engineering plastics industry is experiencing significant growth driven by national policies and increasing demand from high-tech sectors such as new energy vehicles, 5G communication, and aerospace. The market size in China is projected to grow from 7.2 billion yuan in 2018 to 16 billion yuan in 2024, and further to 21.2 billion yuan by 2027 [1][19]. Industry Overview - Special engineering plastics are a third generation of plastics, crucial for national economic development and high-end manufacturing upgrades. They include materials like polyimide (PI), polyamide-imide (PAI), and polyether-ether-ketone (PEEK), which exhibit high thermal stability and are used in electronics, automotive, and aerospace applications [4][19]. - The industry has evolved through four stages: the initial phase (1950-1979) focused on imports, the development phase (1980-1999) saw increased domestic production, the rapid growth phase (2000-2010) involved technological advancements, and the current mature phase (2011-present) emphasizes innovation and sustainability [6][7][8]. Market Dynamics - The domestic market for special engineering plastics is expected to grow significantly, with a compound annual growth rate (CAGR) of 14.5% for key raw materials like naphtha, which is projected to increase from 35.8 million tons in 2018 to 80.7 million tons by 2024 [12]. - The global market for special engineering plastics is also expanding, with a forecasted growth from $9.853 billion in 2018 to $15.376 billion in 2024, and expected to reach $16.493 billion by 2025 [16][19]. Key Companies - Notable companies in the industry include Kingfa Technology, Water Holdings, and Prit, which are actively involved in the research, production, and sales of special engineering plastics. These companies are focusing on innovation and expanding their market presence [2][23][24]. - Kingfa Technology reported a revenue of 59.536 billion yuan in 2024, reflecting a year-on-year growth of 26.35% [26]. Water Holdings achieved a revenue of 0.922 billion yuan, with a growth of 10.55% [28]. Development Trends - The industry is moving towards functionalization, high performance, and scalability, with a focus on developing materials that meet specific application needs in sectors like aerospace and electronics [30][31][33]. - There is a growing emphasis on sustainability, with initiatives aimed at developing recyclable materials and optimizing production processes to reduce environmental impact [35]. Application Areas - Special engineering plastics are increasingly used in high-tech applications, including aerospace components, automotive parts, and electronic devices, driven by the demand for materials that can withstand extreme conditions [13][19][30].

Group 1 - The core issue in the dairy industry is the mismatch between traditional dairy products and new consumer demands, particularly among young and elderly demographics [1][5] - The dairy industry in China experienced its first negative growth in five years, with total production dropping to 29.62 million tons in 2024, a decrease of 1.9% year-on-year [2] - Major dairy companies such as Yili, Mengniu, and Bright Dairy reported revenue declines of 8%-10% in 2024, reflecting the industry's overall downturn [2] Group 2 - Per capita dairy consumption in China fell to 41.5 kg in 2024, a decrease of 5.6% compared to the previous year, while global average consumption is around 140 kg [4] - The structure of dairy products in China is heavily reliant on liquid milk, which has reached a growth bottleneck, necessitating a shift towards high-value imported dairy products [4][5] - The rise of new consumption scenarios, such as ready-to-eat cheese and health-focused products, presents opportunities for growth in the dairy sector [5][7] Group 3 - Dairy companies are increasingly focusing on functional and health-oriented products, with major players like Yili and Mengniu prioritizing product innovation in this area [7][8] - The aging population in China is expected to create significant market opportunities for health-focused dairy products, particularly for the elderly demographic [8][9] - Reports suggest that the "quasi-elderly" group (ages 45-64) also faces nutritional imbalances, indicating a need for targeted dairy products to meet their specific health requirements [9]

Core Viewpoint - The entry of "Moo Star" by "Raising a Cow" into the children's A2 milk market intensifies competition among established brands like Yili, Mengniu, and others, highlighting a growing trend in the children's milk segment [1][2]. Company Summary - "Moo Star" has launched three series of A2 children's milk products, targeting children aged 1 to 12 years, with prices ranging from 2 to 3 yuan per 100ml [1][3]. - The brand plans to utilize both online and offline channels, including major e-commerce platforms and supermarkets, to compete directly with leading dairy companies [2]. - The children's milk market has seen significant growth, with new product launches increasing by 15% in 2023, indicating a robust demand for children's dairy products [2]. Industry Summary - The children's milk market in China has expanded from 30 billion yuan in 2019 to 37.2 billion yuan in 2023, reflecting a steady growth trend [5]. - Despite a decline in the birth rate, the large population of children aged 0-12 years continues to provide substantial market potential, with 230.63 million children in the 0-14 age group as of 2023 [5]. - The competition in the children's milk sector is not solely based on price; factors such as product safety, quality, and nutritional needs are becoming increasingly important to consumers [6].

Core Insights - The dairy industry in China is facing challenges with a decline in revenue and profit, with 20 listed dairy companies reporting a total revenue of 292.5 billion yuan, down 7.7% year-on-year, and a net profit of 12.92 billion yuan, down 3.0% year-on-year [2] Group 1: Market Trends - The aging population in China is creating new growth opportunities in the dairy sector, with the number of people aged 60 and above surpassing 300 million by the end of 2024, and expected to reach 26.4% of the population by 2030 [6][5] - Dairy companies are focusing on functional, differentiated, and scenario-based products to regain consumer interest amid cross-category competition [4][10] Group 2: Strategic Approaches - Companies are advised to address both functional needs and emotional connections with elderly consumers, emphasizing the importance of product functionality and emotional value [7][8] - Major players like Yili and China Feihe are expanding their product lines to cater to the elderly demographic, with Yili's adult nutrition products for seniors accounting for 50% of its adult milk powder business [9] Group 3: Channel Evolution - The sales influence of large supermarkets is declining, while the importance of small and community supermarkets and convenience stores is increasing, with convenience stores meeting immediate consumer needs [14][17] - E-commerce is becoming a significant channel for dairy sales, with Yili reporting that over 50% of its adult milk powder sales are now through online platforms [17][18] - Companies like Mengniu are focusing on market penetration in rural and underdeveloped areas, highlighting the potential for growth in these segments [19]