Catering industry chain: Currently in the transition point of prevention and control optimization, B-end catering supply business may have short-term demand fluctuations. Social zero data in November showed that the catering income was -8.4% year-on-year (month-on-month -0.3pct), while the catering income above quota was -7.5% year-on-year (month-on-month +0.2pct), which reflected the stronger anti-risk ability of big B terminal. We suggest focusing on three main lines of logic: 1) repair of severely damaged consumption scene, Juwei food, Ziyan Food and Babi Food with strong performance elasticity; 2) Rapid recovery of catering to boost demand for Anjing Food, Qianwei Yang Kitchen, Ligao Food, Nichen stock; 3) Endogenous significantly improved and main business switch of Tianwei food, dragon cuisine.
Beer: The impact of the deregulation of epidemic control is expected to be absorbed in the off-season of beer, and the scene of ready-to-drink consumption in the peak season of 2023 May be substantially repaired. The high-end of beer resonates in the ready-to-drink and non-ready-to-drink channels.
Health care products: Under the background of the deregulation of epidemic control, consumers are paying more attention to immunization and health, and health care products have a good opportunity for consumer education.
Dairy products: In terms of cost, the price of fresh milk enters a slow decline channel; Big bag powder prices are down about 30% from the year's high. It is suggested to pay attention to 1) the duopoly Yili Stock and Mengniu Dairy, whose valuation is cost-effective and profitability is expected to improve steadily; 2) The regional dairy enterprises Tianrun Dairy and Yantang Dairy, which are expected to release profit elasticity in 2023.
Public food: this week recommended to focus on listed companies: 1) Snow day salt industry, the future production capacity of photovoltaic glass is expected to increase, while the demand for raw material soda will be at a high level, is expected to drive the company's soda product sales, increase revenue; The company, together with Light Salt Group, the controlling shareholder, and Light Salt Shengfu, a wholly-owned subsidiary of Light Salt Group, will control Hunan Beauty New Material Technology Co., LTD., join the sodium battery circuit, and use the soda ash produced by the company to prepare the precursor of sodium ion battery, which is expected to become a new growth point of the company's net profit. 2) Dongpeng Beverage, currently a number of cities in China are gradually relaxing epidemic prevention policies, which is conducive to the recovery of consumption scene and logistics, and helps to promote the company's product volume; At present, the World Cup is in full swing. As a World Cup sponsor cooperating with CCTV, the company will gain great exposure, which will help to increase product sales and net profit.