BOCIC(SH:601696)2024-05-21 02:55Summary of the Food and Beverage Industry Research Report (May 20, 2024) Industry Overview - The report focuses on the food and beverage industry, specifically highlighting the performance of Gu Yue Long Shan, a prominent player in the yellow wine sector [2][4]. Key Points Market Performance - The food and beverage sector experienced a slight decline of -0.4% last week, ranking 18th among all industries [2][9]. - Within the sub-sectors, other alcoholic beverages and pre-processed foods performed well, with increases of +2.3% and +1.5%, respectively. Conversely, meat products and snacks saw declines of -2.8% and -3.5% [2][11]. Company Insights: Gu Yue Long Shan - Gu Yue Long Shan is actively enhancing its marketing efforts through campaigns like "Yue Jiu Hang Tian Xia," aimed at boosting brand visibility [2][4]. - Recent events include a tasting event in Shenzhen on May 17, attended by nearly 200 guests, including local business leaders and influencers [4][35]. - The company is leveraging its rich historical and cultural background to position itself as a leader in high-end yellow wine, with products frequently featured in significant national events [4][4]. Growth Potential - Yellow wine is anticipated to experience new growth opportunities, with a narrowing revenue growth gap between yellow wine and white wine in 2023 [4][4]. - Gu Yue Long Shan's incentive mechanisms have been improved, and the company has expanded its marketing activities significantly, hosting 490 tasting events across major cities in 2023 and adding 12 new tasting venues [4][4]. - The company has also increased its distributor network by 263 new dealers, filling market gaps in 24 northern cities [4][4]. Financial Metrics - As of May 17, the price-to-earnings ratio (PE-TTM) for the white wine sector was 24.1X, while the overall food and beverage sector stood at 24.0X [2][11]. Risks - The industry faces risks related to raw material price fluctuations and potential food safety incidents [4][40]. Recommendations - The report recommends a portfolio including Shanxi Fenjiu, Chengde Lulou, Luzhou Laojiao, Qingdao Beer, and Jinshi Yuan as potential investment opportunities [4][4]. Additional Insights - Recent data indicates that the price of fresh milk is 3.41 CNY/kg, showing a year-on-year decrease of 12.1% [3][30]. - The national average price for live pigs is 7.82 CNY/jin, reflecting a week-on-week increase of 2.6% and a year-on-year increase of 8.0% [3][30]. - The report also notes the importance of foreign investment in key companies, with foreign holdings in Moutai, Wuliangye, and Luzhou Laojiao at 7.34%, 5.55%, and 3.03%, respectively [19][21]. This comprehensive overview highlights the current state and future potential of the food and beverage industry, particularly focusing on the yellow wine segment and the strategic initiatives of Gu Yue Long Shan.