Shenshenbao Company is the first listed company in the traditional beverage industry, which was once brilliant in the 1980s and 1990s. Since then, due to the vicious guarantee, a large number of bad debts receivable, and the inherent diversified disadvantages of state-owned enterprises, the performance has been depressed for nearly 20 years. After 2006, with the liquidation of historical debts, the main business of the company has also changed. We conducted a survey of Shenshenbao (000019) on May 20 and communicated with senior executives such as the company's chief executive. The main views on the company's current situation are as follows:

(1) after the vicious guarantee and bad debts of accounts receivable have been disposed of, the external environment of the company has been greatly improved, and the worst should be over.

(2) the main sub-industries are highly competitive industries, and the strategy of "stability before development" is suitable for the long-term development of the company.

(3) the main financial indicators are improved, and the main business is expected to reverse losses; with the recovery of Shenzhen PepsiCo performance, there should be a great increase in performance this year.

Investment advice: looking forward to "turning a black chicken into a Phoenix" is the premise of our long-term attention to Shenbao, but it needs a certain catalyst to appear; the improvement of the performance of Shenzhen Pepsi should be a high probability event to promote the performance growth of the joint-stock company this year. No investment rating for the time being, keep a close track