The May Day dining scene has led to an increase in demand for products such as beer, condiments, and prepared dishes.
During the “May Day” holiday this year, taste buds became a new trend in consumption. Food and beverage consumption continued to be popular, and transportation of ingredients such as barbecues increased markedly.
Meituan data shows that in the first three days of the holiday, dine-in orders across the country increased by 73% compared to the same period last year.
The catering scene is driving demand for products such as beer, condiments, and prepared dishes.
Furthermore, “county tours” and the like have become a new way to open up this year's “May Day” holiday travel. During the “May 1st” holiday this year, the number of orders from supermarkets in the county increased 55% year-on-year, boosting demand for snacks and the like to a certain extent.
According to the Dongguan Securities Research Report, restaurants are driving demand for beer and other products, and travel methods such as county tours are boosting supermarket consumption.
According to a research report released by Dongwu Securities, the 2024Q1 beer sector's performance exceeding expectations is a positive sign. Judging from the pace of business, the beer sales base was high and low in 2023, corresponding to the low and high levels of the 2024 business pace. The trend of improvement is clear month by month.
Looking ahead to this year, the strategic focus of various wine companies is mainly on improving the structure and securing profits. Benefit cost dividends are expected to continue to expand during the peak season, there is still room for price increases & fee reduction for some products in strong markets, and the corporate tendency to control spending in competitors' strong markets to improve cost-efficiency ratios. The company's profitability is expected to continue to improve, and profit growth+cash flow is high.
Currently, high-quality targets with performance support in the sector are historically low in valuation, and there is plenty of room for improvement.
Beer-related businesses:
Tsingtao Brewery (600600.SH,00168), China Resources Brewery (00291), Beijing Holdings (00392).