14 years, lagging behind the rise in food and beverage, but the current low valuation. As the dairy industry progress in development of new products, such as milk construction, the industry is expected to grow steadily. Beer industry affected by climate, poor performance this year. Expected to resume growth next year. Condiment industry maintained a rapid growth, will maintain rapid growth.
Category: Industry research institutions: Pacific Securities Co., Ltd. Researcher: Wangxue Qian Date: 2014-12-19

14 years, lagging behind the rise in food and beverage, but the current low valuation. Performance and trends within the industry sub-sectors differentiation more obvious. Some sub-sectors gains and earnings growth rate is better. Some sub-sectors at a low valuation range.

As the dairy industry progress in development of new products, such as milk construction, the industry is expected to grow steadily.

Beer industry affected by climate, poor performance this year. Expected to resume growth next year. Consolidation within the industry has made significant progress during the year. With the market expansion and industry consolidation, there is still much room for development.

Condiment industry maintained a rapid growth expected in the future with the construction of new capacity, new product development and promotion of industry consolidation, will maintain rapid growth.

Food and beverage blue-chip current valuation levels low by historical standards, with good safety margin and a larger rebound space. Also has a good outlook. With the recovery in the overall market valuation, valuation level rise is expected to achieve.

Maintain the industry's "good" rating, focusing on recommended Yili, Haitian flavor industry, Qingdao Beer, three whole foods.

Risk Warning: the macroeconomic impact of the government's economic policies and capital markets should be sufficient attention. Food safety is a special factor in food and beverage industry, must be given special attention.