Performance dropped, liquor plummeted! Consumption downturn

　　Consumer stock performance declined.

　　The third quarterly report has been disclosed and some leading stocks have fallen significantly. Yanghe shares in the liquor sector fell 5%, closing in the morning with a market value of 121.1 billion yuan, along with its third-quarter net profit hitting the lowest since the same period in 2011. The home appliance index fell by more than 1%, with beauty and care, agriculture, forestry, animal husbandry, and fishery sectors leading the decline.

　　Image source: Photo Network

Performance is sluggish, liquor plummets

　　Yanghe Co., Ltd.s operating income in the third quarter was 4.641 billion yuan, a year-on-year decrease of 44.8%; net profit attributable to the parent company was 631 million yuan, a year-on-year decrease of 73%; net profit after non-attribution to the parent company was 456 million yuan, a year-on-year decrease of 81.4%.

　　Sinolink Securities believes that the third-quarter performance of Yanghe Co., Ltd. was lower than expected. This was due to the weakening of mobile sales in the third quarter. The company took advantage of the situation and slowed down its requirements for repayment, thus showing a significant decline in revenue.

　　In recent years, Yanghe Shares performance has been lower than that of the entire liquor industry, and the stock price trend has also been unsatisfactory. It fell by more than 29% in 2021, 0.86% in 2022, and nearly 30% in 2023. This year to yesterday's closing, it has fallen by nearly 19%.

　　According to the performance report released by Kouzijiao, the company's operating income in the third quarter of 2024 was 1.195 billion yuan, a year-on-year decrease of 22.04%; net profit was 362 million yuan, a year-on-year decrease of 27.72%. Net profit after deducting non-profit items was 337 million yuan, a year-on-year decrease of 32.34%.

　　The overall revenue performance of Kouzijiao in the third quarter was lower than expected, mainly because the sales of Kouzijiao's 10-year-old and above single products were hindered during the period. In the third quarter, the company's sales within and outside the province were in the adjustment stage, and the consumption power was at the bottom, and competing products were added. In addition, the company increased expenditures during the period to strengthen sales, which dragged down profits.

Big consumption downturn

The callback list is released

　　In early trading, consumer stocks collectively bucked the trend and fell. Led by the home appliance index which fell by 1.47%; beauty care, agriculture, forestry, animal husbandry and fishery, and other sectors bucked the trend and fell, while food and beverages, medicine and biology, textiles and apparel, etc. underperformed the index.

　　Textile and apparel leaders such as Semir Apparel and Heilan Home fell even more sharply, with closing declines of around 7% in the morning. In addition, Jinjiang Hotel in the hotel industry, Hisense Home Appliances in the home appliance sector, and Amic in the beauty industry all fell by more than 3%.

　　The large consumer sectors have been undergoing adjustments for a long time. The pharmaceutical and biological, food and beverage, agriculture, forestry, animal husbandry, and fishery indices have all fallen for four consecutive years. Textiles and apparel have fallen by more than 10% during the year. Some high-quality leading stocks also experienced larger adjustments.

　　According to statistics from Securities Times·Databao, among the leading stocks in the large consumer sector, the latest prices of 20 stocks such as Zhifei Biotech and Changchun High-tech have fallen back by more than 50% from their historical highs. Huaxin Securities said that the emphasis on promoting consumption has increased, and residents' Income, consumption structure, and consumption formats are expected to develop in all directions.