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hello everyone! i am qian yanjun, and today i am publishing my latest research results on the public account "daodahao" - daoda research selection.

the a-share market is still sluggish this week. in the past month, qian yanjun has not updated daoda research's key focus industries because he really hasn't seen any research reports worth sharing. this week is still the same. in the market adjustment, investors have to endure the hardship and learn more.

today, kweichow moutai's share price fell below the 1,300 yuan mark, and the liquor sector performed weakly.what happened?? food and beveragecan the three tracks of snacks, baked goods and pre-prepared meals hold up?catchnext, let’s take a look at these three tracks.performance in the first half of this year.

snack food sector: net profit of two companies dropped by more than 70%

in the first half of the year, the 11 a-share snack companies had a total revenue of 31.5 billion yuan and a total net profit of 1.3 billion yuan. among them, only four companies had a net profit margin of more than 10%, namely qia qia food, jinzi food, ganyuan food and yanjin shop; wanchen group's revenue exceeded 10 billion, mainly due to the rapid growth of the company's mass-market snack business.

▲data source: tonghuashun ifind, compiled by qian yanjun

in terms of performance growth rate, the revenue of three companies declined, and the net profit of five companies declined; three squirrels, yanjinpu, ganyuan food, and jinzi food performed well, with revenue and net profit growth rates both exceeding 20%; the net profit of laiyifen and liangpin puzi declined by more than 70%.

▲data source: tonghuashun ifind, compiled by qian yanjun

according to a research report by a securities firm, the market size of my country's snack food industry increased from 590 billion yuan to 1.16 trillion yuan from 2013 to 2022. however, there are many types of snack foods, and most companies are small in scale, so the industry competition is relatively fragmented. in recent years, my country's snack food sales have grown rapidly, with sales exceeding 70 billion yuan in 2023, a year-on-year increase of about 150%.

▲image source: screenshot from dongguan securities research report

baked goods sector: no company has a net profit margin of more than 10%

in the first half of the year, the nine a-share bakery companies had a total revenue of 11.052 billion yuan and a total net profit of 730 million yuan, with only one company, maiqiu'er, suffering a loss. in the bakery sector, no company had a net profit margin of more than 10%; the net profit margin of taoli bread, the "big brother" of the sector, was only 9.60%.

▲data source: tonghuashun ifind, compiled by qian yanjun

in terms of performance growth, ximai food's revenue grew faster, ligao food and nanqiao food's net profit grew faster, while taoli bread, the leading bread company, saw a slight decline in both revenue and net profit.net profit decreasedover 30%.

▲data source: tonghuashun ifind, compiled by qian yanjun

according to a research report by a securities firm, the market size of my country's baked goods industry will reach 285.3 billion yuan in 2022. considering the revenue of companies in the baked goods sector, it is not difficult to find that the competition landscape of this industry is relatively fragmented and the competition is relatively fierce.

however, in the long run, the long-term prospects of the baked goods sector are still promising. according to data from the china business industry research institute, the per capita consumption of baked goods in china is only 7.8 kilograms, which is far lower than that of countries such as mexico and italy, and there is also a large gap with japan, which has similar eating habits.

▲image source: screenshot from founder securities research report

pre-prepared food sector: more than 50% of companies saw revenue decline

in the first half of the year, the 11 a-share pre-prepared food companies had a total revenue of 20.185 billion yuan and a total net profit of 1.671 billion yuan. the performance of the sector's "big brother" anjing food was far ahead; the top four companies in terms of revenue had a total net profit share of up to 88%.

▲data source: tonghuashun ifind, compiled by qian yanjun

in terms of performance growth, 6 companies saw revenue decline, accounting for 55%; 5 companies saw net profit decline, accounting for 45%. gaishi food’s net profit doubled year-on-year, mainly due to a large inventory depreciation last year.

▲data source: tonghuashun ifind, compiled by qian yanjun

as of september 9, the market value of the sector's no. 1, anjing food, was also far ahead, exceeding 21 billion yuan. however, the current dynamic valuations of the top three companies by market value are all less than 14 times.

▲data source: tonghuashun ifind, compiled by qian yanjun

disclaimer: daoda research and selection is to explore valuable information from the industry perspective and integrate the main viewpoints of the hottest research reports. the information provided in the article is for reference only and does not involve operational suggestions. enter the market based on this information at your own risk!

okay, that’s all for today, and i wish you all a happy weekend!

(qian yanjun)

the content of this article is for reference only and is not used as a basis for investment. if you enter the market based on this content, you will do so at your own risk.

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