China / Hong Kong Monthly Chart Book

Food & Beverage Cart April Episode
DBS Group Research . Equity

24 April 2012

Not that defensive

HSI: 20,624

In Singapore, this research report or research analyses may only be distributed to Institutional
Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act,
Chapter 289 of Singapore.
www.dbsvickers.com
Refer to important disclosures at the end of this report
ed-OY / sa- MH

O utperform

Story

Stocks related
China Mengniu,
Strong ouput
Want Want

Wine, Beer, Weak m acro and Tingyi, Tsingtao,
Beverage
cold weather
China Foods

Underperform

Com pany
Stocks

Code

Story

Positive

Mengniu 2319 HK

Stablizing raw m ilk price and
still robust industry growth

Negative

Yurun 1068 HK

Sharp plunge of hog price

Positive/ Negative

Source: DBS Vickers

Chart of the Month: Output of Wine in China
Yoy growth%

mn litre
140

120

120

100

100

80

80

60

60

40

40

20

20

0
(20)

Litre mn

Jan -12

Mar-12

S ep -11

0
Nov -11

12-month picks. Our top buys remain China Mengniu, China
Foods and China Resources Ent (291 HK BUY) for their positive
margin outlook. Our top-sells are Dynasty (828 HK; FV) and
Tsingtao Brewery (168 HK; FV) for their low operating
efficiencies; as well as Yurun for its deteriorating cash flow and
sluggish recovery.

Sector
Dairy,
Confectionery

Ju l-11

This month’s tactics. We suggest to long China Mengniu for
the more defensive dairy market in terms of growth, as well as
the stabilizing raw milk costs. Short target is China Yurun. We
believe their profits in 1Q12 would be affected by the sharp
plunge in hog prices, as they would not have been able to
adjust their inventory in time.

Direction

Mar-11

Things to watch out (2): Macro-sensitive wine market. Wine,
both local and imported, has been facing tough times, since
1Q12, affected by the slowdown of economy in China. That
should post short-term pressures for wine companies like
China Foods (506 HK) and Changyu (000869 CH). In fact,
Changyu’s sales growth has slowed down to 2-3% in 4Q11,
and might even turn negative in 1Q12.

Industry

May -11

Things to watch out for (1): Plunge in hog prices. Hog prices
have plunged by over 25% since their peak in October 11, in
line with our forecast in 4Q11. This is due to increased pig
stocks. But the magnitude of decline has overtaken the
market’s forecast, as well as the guidance of companies like
Yurun and People’s Food (PFH SP). Hence, we think there
might be further downside risk for the 1Q12 result of Yurun.

Highlights of the Month

Jan -11

Weak performance of F&B market. Most of the F&B subsegments recorded disappointing outputs in March 12,
especially for alcoholic drinks, partly due to the weak macro
situation. The beer and soft drink markets were adversely
affected by the cold weather. Two exceptions were the dairy
and confectionery markets, which should benefit China
Mengniu and Want Want (151 HK HOLD).

Alice HUI, CFA · (852) 2971 1960 ·
alice_hui@hk.dbsvickers.com

S ep -10

This month’s tactics: Short-term positive for China
Mengniu (2319 HK; BUY); negative for Yurun (1068 HK;
FV)

Nov -10

Titus Wu · CFA (852) 2820 4611 ·
titus_wu@hk.dbsvickers.com

Ju l-10

Near term pressures for Wine and Baijiu market still on,
due to weakening macro environment

May -10

ANALYST

Jan -10

Weak output for F&B market in March; Decline in hog
prices surprises market.

Mar-10

Nov -09

Page 1

yoy %

Source: CEIC

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd
(“DBSVR”), are to contact DBSVR at +65 6535 9688 in respect of any matters arising from
or in connection with this report.”

China / Hong Kong Monthly Chart Book
Food & Beverage

Table of Contents
Valuation

3

F&B Industry Dynamics

6

Sensitivity Analysis to Raw Materials

7

Slaughter Industry Snapshot

8

Price Trend of F&B Goods

9

Price Trend of products of major F&B brands in China

10

Raw Material Costs Trend

11

China Export and Import of F&B Goods

12

Glance by sub-sector

13

Beer

13

Wine

15

Dairy

16

Soft drink

19

Slaughter

23

Instant noodle

27

Baijiu (White liqueur)

28

Edible oil

29

Confectionary

32

Flavouring

33

Ice cream

34

Monitor of F&B climate in China

35

PE & PB Band Charts

37

Page 2

China / Hong Kong Monthly Chart Book
Food & Beverage
F&B Valuation matrix
China F&B DBSV Coverage

Com pany Code

Segem ents

Prem ium / discount
F&B
Track
Forw ard
Sensitivity
to input Financial Trading record
PEx 2006- Industry Market Profitability
M&A
O utlook
cost
Health liquidity & Mgt catalyst Total
2011 Grow th Presence

Mengniu 2319 HK Dairy

10%

Kitchen food
China
Foods

506 HK

-10%

10%

5%

-10%

10%

45%

10%

10%

0%

-20%

5%

16

0.04

20%
20%

15%
-5%

0%
-10%

80%
50%

28
23

0.21
0.08

Confectionery
Total

10%

10%

0%

-5%

30%

20
25

0.00
0.34

29

0.48

5%

Food

Rice cracker
Beverage
151 HK

30%

20%

5%

0%

0%

-10%

30%

5%

0%

-10%

5%

5%

0%

-10%

0%
20%

30%
15%

5%
-5%

0%
-5%

Snacks

5%

5%

0%

0%

O thers
Total

0%

0%

0%

0%

Instant Noodle

Tingyi

322 HK

85%
10%

10%

10%

10%

65%

26

0.09

40%

22

0.20

27
26
26

0.76
0.46
1.22

24
22

0.09
0.14

16

10%

10%

0%

0%

55%
45%
30%

20

0.08

20%

19
22

0.00
0.31

0%

30%

5%

-10%

70%

26

0.59

Beverage

30%

20%

-10%

-10%

75%

27

0.12

Bakery

15%

5%

0%

-5%

60%

25

0.01

O thers

0%

0%

0%

0%

5%

10%

20%

10%

45%

Total

Yurun*

1.40

0%

F&B Total
Retail
Total

Want
Want

22

30%
30%

Beverage
291 HK

10%

EPS
FY12
HK$

Wine
Beverages

Beer

CRE

20%

Fair
Value
FY12 PE

1068 HK Meat

0%

10%

-10%

-15%

-10%

0%

-40%

10% -55%

Target
Price Rating
HK$
32.00

8.80

33.00

HO LD
7.10

22

0.01

26

0.74

20.00

7

0.70

7.60

Dynasty* 828 HK

Wine

30%

10%

5%

-5%

5%

-10%

-30%

5%

10%

17

0.04

1.49

Tsingtao

Beer

5%

20%

-5%

-10%

5%

0%

5%

15%

35%

21

1.82

38.00

168 HK

BUY

Fully
valued

Source: DBS Vickers

Page 3

China / Hong Kong Monthly Chart Book
Food & Beverage

Valuation table

Company Name
HK-listed
Wine Sector
China Foods*
Dynasty Fine Wines*
China Tontine Wines
Average

Currency
Code

Price
HK$

Target
Price
HK$

Rec

Mkt
Cap^
US$m

Fiscal
Yr

PE
12F
x

PE Yield Yield
13F 12F 13F
x
%
%

P/Bk
12F
x

P/Bk
13F
x

ROE
12F
%

ROE
13F
%

506 HK
828 HK
389 HK

HKD
HKD
HKD

7.81
1.51
0.88

8.8
1.49
n.a.

Buy
FV
NR

2,811 Dec-11
243 Dec-11
228 Dec-11

23.1
34.2
6.5
21.3

17.6
19.5
6.5
14.5

1.6
1.2
n.a.
1.4

2.1
2.0
n.a.
2.0

2.9
0.9
n.a.
1.9

2.6 13.3
0.9
2.7
n.a. 9.2
1.7
8.4

168 HK
291 HK
124 HK

HKD
HKD
HKD

44.85
27.7
2.92

38.0
33.0
n.a.

FV
Buy
NR

3,786 Dec-11
8,565 Dec-11
644 Dec-11

24.6
21.1
n.a.
22.9

22.0
16.2
n.a.
19.1

0.7
1.9
n.a.
1.3

0.8
2.5
n.a.
1.6

3.9
2.0
n.a.
2.9

3.4 16.8 16.4
1.8
9.5 11.6
n.a. n.a. n.a.
2.6 13.1 14.0

2319 HK
1007 HK
1230 HK
1717 HK
1112 HK

HKD
HKD
HKD
HKD
HKD

22.95
1.68
1.21
1.46
21.8

32.0
n.a.
n.a.
n.a.
n.a.

Buy
NR
NR
NR
NR

5,227
219
549
186
1,692

Dec-11
Dec-10
Dec-11
Dec-10
Dec-11

16.3
4.0
9.8
n.a.
15.9
11.5

12.6
3.3
9.5
n.a.
12.3
9.4

1.3
6.2
5.4
n.a.
3.0
4.0

1.8
7.5
5.7
n.a.
3.8
4.7

2.5
0.6
0.9
n.a.
4.7
2.2

2.2
0.6
0.8
n.a.
3.8
1.8

16.4
17.1
9.1
n.a.
30.4
18.2

18.4
17.9
8.2
n.a.
32.5
19.2

Instant Noodle & Beverage and Others
Tingyi*
322 HK HKD
Want Want*
151 HK HKD
Besunyen
926 HK HKD
Uni-President
220 HK HKD
China Huiyuan
1886 HK HKD
Average

20.5
9.14
0.66
6.2
2.8

20.0
FV
7.1 Hold
n.a.
NR
n.a.
NR
n.a.
NR

14,769
15,578
142
2,876
533

Dec-11
Dec-11
Dec-11
Dec-11
Dec-11

27.7
29.8
2.6
28.2
16.0
20.9

21.8
23.7
2.0
21.0
15.2
16.7

1.8
1.7
9.3
0.9
1.4
3.0

6.1
9.3
0.4
2.4
0.6
3.8

5.2
7.5
0.4
2.1
0.6
3.2

23.5
34.8
16.9
8.7
3.8
17.5

25.8
35.1
18.5
10.7
4.1
18.9

9.9
0.53

7.6
n.a.

12.2
n.a.
12.2
19.0

10.0
n.a.
10.0
14.8

2.0
n.a.
2.0
2.7

1.0
n.a.
1.0
2.7

1.0
8.8
9.9
n.a. n.a. n.a.
1.0
8.8
9.9
2.3 15.1 16.4

Brewery Sector
Tsingtao Brewery-H*
China Resources Ent.*
Kingway Brewery
Average
Dairy Sector
China Mengniu*
Daqing Dairy
Yashili Int'l
Ausnutria Dairy
Biostime Int'l
Average

Slaughter Sector
China Yurun*
Sumpo Food
Average
HK-listed average

1068 HK
1089 HK

^ H-share market cap for H-share
Source: Bloomberg, * DBS Vickers

Page 4

HKD
HKD

FV
NR

2,325 Dec-11
113 Dec-11

2.3
2.1
12.3
1.3
1.5
3.9
2.5
n.a.
2.5
3.4

15.6
4.6
9.9
10.0

1 7.a.8 2.27 22.9 n.193 Dec-11 17.6 15.7 14.9 n.a.a.6 Dec-11 Dec-11 Dec-10 Dec-10 Dec-11 Dec-11 15.69 000858 CH 600519 CH 000568 CH 600779 CH 600809 CH 002304 CH CNY CNY CNY CNY CNY CNY 34.8 55.54 5.0 ~ FY12: FY13F.7 10.37 211.4 3.0 n. n.3 24. n.2 2.a.6 n.6 17.3 4.1 12.8 20.522 17.681 34. 19.8 18.4 25.21 7.9 44.5 200.9 1.7 3.7 12. 1.8 n. n.07 Dairy Sector Inner Mongolia Yili Beijing Sanyuan Guangxi Royal Dairy Bright Dairy Beingmate Average 600887 CH 600429 CH 002329 CH 600597 CH 002570 CH CNY CNY CNY CNY CNY 22.5 2.6 12.a.0 n.9 3.a.a.1 0.8 3.19 Slaughter Sector Henan Shuanghui Sichuan Gaojin Shandong Delisi Average 000895 CH 002143 CH 002330 CH CNY CNY CNY 65.3 48.7 17.1 12. 2.9 28.7 2.0 16.8 14.6 3.6 0.a.6 1.a.98 22.a.5 45.a. 6.4 n.9 25. n.763 4.7 3.8 32.a.278 1.1 1.7 19.4 48.a.2 810 Dec-11 867 Dec-11 19. 1.796 Dec-11 73.7 20.1 33.a.945 Dec-11 53.9 13.6 n.8 29.9 46.0 7.5 3.5 7. n.9 2.a.3 1.7 15.5 1.a. 0.8 15.8 3.5 14.438 Oct-11 17.51 12.6 13.1 1.279 Sep-11 16.6 n. 41.a.3 0. 1.7 15. n.0 16.8 11.a. FY13: FY14F Source: Bloomberg.0 n.a.1 2. * DBS Vickers Page 5 .2 NESN VX ULVR LN KO US PEP US BN FP KFT US SFD US HRL US TSN US CHF GBp USD USD EUR USD USD USD USD Company Name A-share listed Wine Sector Yantai Changyu Tonghua Grape Wine Gansu Mogao CITIC Guoan Vine Average Chinese Liqueor Sector Wuliangye Kweichow Moutai Luzhou Laojiao Sichuan Swellfun Shanxi Xinghuacun JS Yanghe Brewery Average A-share listed average Multinational Companies Nestle SA Unilever PLC Coca-Cola PepsiCo Danone Kraft Foods Smithfield Foods~ Hormel Foods Tyson Foods Average Code PE 12F x PE Yield Yield 13F 12F 13F x % % P/Bk 12F x P/Bk 13F x ROE 12F % ROE 13F % 20. 8.3 4. 5. n.5 2.1 n.9 n.8 41.a.a.281 Dec-11 217 Dec-10 505 Dec-11 19.a. 10.3 28.3 11.1 10. 7.4 4.8 3.a.1 3.1 17.a.4 5.7 17.89 7. n.a.9 n.9 4.2 1.1 18.7 2.671 946 472 1. n. n.5 n.5 20.3 15.802 22.5 26. 33.2 32. 7.a. n. 39.6 2.8 0.2 16.4 n.4 4.1 0.69 166.a.8 1.a.8 2.5 4.321 Dec-11 20.5 5.a.255 175 503 968 Dec-10 Dec-11 Dec-11 Dec-11 Brewery Sector Beijing Yanjing Chongqing Brewery Guangzhou Zhujiang Average 000729 CH 600132 CH 002461 CH CNY CNY CNY 15.3 40.4 7.a.7 50. 3.0 n.0 30.5 7.a.0 n.a.2 n. 1.5 29.4 24.2 9.037 Dec-11 1.2 n.266 Apr-11 28.8 6.4 15.8 8. 7.2 18.63 11.18 103.7 3.4 n.99 67.9 n.7 n. 26.98 157.74 13.2 2.4 3.0 12. 25.a.5 2.13 44.a.6 n.0 14.0 1.2 18.6 n.9 33. 3.1 9.0 2. 2.2 38.4 3.7 2. 5. n.4 14.3 n.0 2.9 22.0 2.5 56.a.9 2.1 2. n.a.7 19. 30.a.a.2 24. 2.9 n.9 11. 6. n.5 2.0 13.3 1.0 2. n.a.6 2.3 0.9 4.5 15. n. 2.7 15.9 n.8 12.6 3.425 Dec-11 Dec-11 Dec-11 Dec-11 Dec-11 25.5 6.a.2 28.9 38.9 14.a. n.6 4.05 7.1 1.a.6 8.2 n.861 9.0 15.966 Dec-11 1.38 6.39 8.8 2.6 61.6 6.8 2.542 1. 2.a.28 3.7 1.1 1.0 3.a.66 5.0 55.1 n.5 40. n. n.9 10.3 70.776 Dec-11 66.a.a. 2.9 12.3 28.3 23. n.9 n.1 18.a.9 5.6 24.2 22.9 2.6 11. 1.a.2 n.a. 1.a.a.7 n.1 3.a. n.7 n.4 1.8 15.a. 2.2 4.1 33.7 32.4 15. n.3 4.3 6.2 32.53 Beverage and Others Hebei Chengde Lolo Zhengzhou Sanquan Average 000848 CH 002216 CH CNY CNY 14 27.4 n.a.6 18.4 18.5 2.a.9 2.1 24.4 24.1 5.1 11.0 4.9 6.China / Hong Kong Monthly Chart Book Food & Beverage Valuation table (continued) Currency Price HK$ Mkt Cap^ US$m Fiscal Yr 000869 CH 600365 CH 600543 CH 600084 CH CNY CNY CNY CNY 95.6 1.6 7.6 40.2 18.5 19.a.4 16.76 69.6 22.6 26.6 20.19 25.7 n.3 6.9 12.a.7 2.6 3. 4.3 14.a.4 15.a.2 3.9 0.471 Dec-11 2068 42.9 15.a.0 12.5 4.4 7.3 27. n.a.a. n.8 29.4 40.4 6.1 n.9 9.1 38. 21. n.89 9.9 16.2 14. 11.a.880 Dec-11 37.5 24. 25.0 3.8 41. n. n.8 4.

1 21.3) 32.6 Baijiu 10.9 18.2 16.2 27.5 31.4 12.5 12.6 0.0 14.1 11.6 25.4 23.3 9.8 35.4 7.1) (7.9 12.9 18.6 40.0 - - - - Flavoring 15.5) 0.5 7.1 37.2 1.6 17.2 4.4 16.4 17.2 17.1 13.4 28.1 15.8 0.7 21.9 36.3 45.7 4.2 23.6 9.0 85.5 (42.2 45.5 12.4 Soft drink 14.8 21.2 25.8 11.5 18.1 10.6 % 10.8) 23.3 63.9 27.7 35.5 7.5 113.5 4.4 14.9 - - - - Water 36.5 7.1 (11.3) 18.0 16.5 9.8 3.3 6.0 16.3 23.7 35.3 6.9 (12.9 22.8 37.1 8.2 Dairy 6.6 (7.3 - - - - Slaughter & Meat Processing 21.6 - - - - Instant noodle 20.3 35.3 (3.4 14.8 15.3 14.3 - - - - Tea 58.3) 9.1 23.2 81.8 11.3 - - - - Confectionary 17.5) 41.3 - - - - Ice cream (5.6 7.2 (17.4 19.1 (0.1 21.1) 18.6 - - - - Grape wine (6.9 19.8 9.8 4.3 17.7 18.0) 16.8 20.China / Hong Kong Monthly Chart Book Food & Beverage F&B Industry Dynamics China F&B Industries Mar2012 Food & Beverage Sub-sectors Production volume y-o-y m-o-m YTD yo-y % % % Beer (5.8 53.8 10.8 123.3 7.2 11.3 19.0 6.4 19.6 28.3 15.5 9.8 5.2) 6.9 Sugar 32.8 13.2 141.2 3.9 Canned food Feb2012 Feb2012 Feb2012 Dec2011 Dec2011 Sales revenue Gross Margin Profit Margin Sales volume quarterly Inventory quarterly Value YTD % Value YTD % YTD y-o-y q-o-q y-o-y % % % y-o-y % Prosperity Index Value YTD RMB bn YTD yo-y 0.0) 12.3 28.8 5.9 Edible vegetable oil 8.0 - - - - Carbonated drink - Source: CEIC Beer and beverage affected by the chilled weather in Mar Wine affected by the weak macro Page 6 Baijiu affected by the slowdown of economy .7 21.0 25.7 18.9 11.2 3.4 20.6 18.6 18.9 10.

6 7. Company Note: The sensitivity analysis assumes the prices of materials used by companies are marked to the market value on real-time basis.6) 15% 39% 100% (7.4 (0.5) (12.9) (4. DBS Vickers.2% Milk powder 33% (15.3 2.1 (6.2) -0.0) -0.3) 1.9) (4.7) (7.9) (4.2% (0.5) 2.6) -0.1) -0.0 5 Total 0.0% Sugar 17% (7.3) 1.3% 27% 48% 28% 44% 4% (7.7% (0.7) (20) 0.1% 12% (8.2 0.3) 1.1% (0.3 0 8% 11.3) -0.2% (0.3) (7.2% (0.4) Mar-12 (7.4) (2.3 0 8% 11.4 0 (0.4) (11. FY11 Apr-12 (7.0 0.2% (10) 20% (3.2% Total -1.4) (2.0) 0.0) -0.1 2.0% Source: CEIC.2 0.0 5 2% 44% - (7.4) (2.3) 1.3 2.5) (1.9 8.3% 6% (15.0) -0.2% Total 0.7) Rice Barley 24% 1% 23% 44% 3% 5% 100% 95% 100% 99% 0.1% 15% (10.6 (9) (6.4) (7.5 9.0% Total 0.3 (10) (0.1 0.0) Palm oil Tin 2319 HK Milk (8.7) YTD vs.6) Change % FY12 vs FY11 % Apr vs Mar DBS Assumption 0.2% 50% (30.8) (20.7) (8.1% 48% 0 Tingyi Instant noodle Palm oil Wheat flour 151 HK Rice cracker Beverage Want Want Mengniu 506 HK Beverage China Foods CRE Beverage 168 HK Beer Tsingtao (0.0% Film 33% (10.1) (21.0) (10) 0.3 2.5) (7.1) -1.3 0.1 2.9 8.6) 0.4) (2.7) (4.2 0.3 15% 17.3) 1.3) 2.8 10 (0.9) (4.4) (7.4 0 (0.3 (10) Montly movement impact to profit in FY12 Impact to Impact Revenue EBIT to total Gross breakdown breakdown margin ppt profit 52% PET 60% (10.5) (7.4) PET Rice 100% 28% (7.1 0.0) 0.4 10 44% 50% (0.8 10 70% (10.3) -1.4% Total -2.4 0 Daqing Dairy 1007 HK Infant formula China Raw milk 0.4) (2.4% - 0.0% Film 29% (10.8) -4.6) 0.9) (4.0% Milk powder China Raw milk 50% Sugar 15% Aluminum PET Confectionary Cocoa 291 HK Beer 2.3) Rice Sugar Snacks 14% 16% Barley 2.0 7.0 7.3% Total -5.7) (1.7% 16% 11.2 0.1) (5) 0.5) (1.9 8.0% (0.1) -0.1% Sugar 6% (7.0) (10) 0. PET prices still hiking Barley price remains high Page 7 .8) (0.3 (10) (0.2) -1.5) 2.1% (0.4) (7.2) -2.0% 50% (25.3 (10) (0.2) -0.2 0.6 7.3 2.1) (20) 17.0) -0.7) (8.1 (0.8) (0.5) 0.9) (4.6 (9) (0.7) (7.8 10 50% 2.6) 0.4 0 (0.5 9.0 0.0 7.4% Total -1.0% (0.0% 0.7) (7.China / Hong Kong Monthly Chart Book Food & Beverage Sensitivity Analysis to Raw Materials Sensitivity analysis YTD y-o-y % Company Stock code Segments 322 HK Beverage Materials Sugar % of COGS 10% Apr-12 (7.0) 0.

67 31.831 5.4) 6.4) (9.5 4.8) Number of Slaughtered Fattened Hogs 000 Number of Pig Stock 000 461.6 2.03 14.5 (6.02) 49.6 Slaughter profit rmb/kg 5.4 1.6 28.4 24.490 4.63 (0.9 (6.9 4.8) 22.2 2.9 (3.66 43.8 20.10 49.4 0.23 (1.2 41.8 (26.2 (4.670 3.1) (8.4) 23.7 Piglet price rmb/kg 32.4) 7.4 12.1 (3.34) 464.142 (18.4 Source: CEIC Hog price still in downtrend Slaughter profit continued to decline Page 8 .4 (1.4 11.23 21.0 30.4 10.18 0.5 61.2 1.1 (6.8 2.1 y-o-y m-o-m % % 5.17 0.8) Number of Sow Pig Stock 000 49.China / Hong Kong Monthly Chart Book Food & Beverage Slaughter Industry Snapshot China Slaughter Industry Mar2012 Feb2012 Jan2012 China Slaughter Unit Pig to Feedstuff Ratio x Value 6.3 30.7 3.70 458.460 3.1 2.4 10.6) 6.15 3.540 5.1 Corn wholesale price rmb/kg 2.6) Value y-o-y m-o-m % % 7.4 0.2 62.2 Ex-Factory pork price rmb/kg 21.6 28.670 4.9 (3.9 16.1) 17.4 17.9) 20.5 y-o-y m-o-m Value % % (7.0 2.9 Hog Price rmb/kg 15.500 4.3 9.733 11.8) 16.6 0.

3 (2.4 (0.3 10.8 9.2 10.1 7.1 (1.7 (0.0) 19.6 8.3 (0.1 0.3 (0.8) 15.9 (4.1) (0.3 6.0 10.3 8.6) 82.1 5.9 10.3 5.6 19.7 9.China / Hong Kong Monthly Chart Book Food & Beverage Price Trend of F&B Goods Pricing of F&B goods Price change of Food & Beverage goods China y-o-y % Apr2012 m -o-m YTD y-o-y % % y-o-y % Mar2012 m -o-m YTD y-o-y % % Edible oil Soybean O il Peanut O il 5.7 0.8 (1.8 Meat & poultry Pork Beef Mutton Chicken Egg 3.0 0.6 10.0) (0.1) 0.5 21.1 15.2 11.4 9.9 9.2 5.3 0.9) 3.1 10.0 (0.9) 19.2) (4.2 5.4 0.6 0.2 6.8 20.1) 7.1 6.8 11.2 52.4 0.2 0.9 0.2 9.2 5.6 0.6 0.9 0.5 9.4 20.2) 35.5) 1.9 8.7 5.6 9.1) 0.9 11.8 (3.8 4.9 16.0 15.4 0.6 (2.3) 11.0 15.1 1.2) Grain Rice Flour Dairy Milk Yogurt Infant formula local brands Infant formula foreign brands Fruit & Vegetable Cabbage Apple Pork price continued to plunge Source: CEIC Edible Oil prices inched up Page 9 .5) (3.1) 10.3 10.2 5.4 0.6 119.9 (0.2) (6.2 9.5 (5.

8 71.3 26.6) 0.2) 5.0) (19.2) 3.6) (12.7) (10.7) 0.3) (8.0 (6.1 (15.4 (13.7 (10.7) (10.2 1.8 7.0 0.1) 129.5 (19.0 1.9 20.7 79.5 (2.8) 0.2 59.8 15.7) (13.7) 3.1) 8.9) 0.2 (2.4 66.3 (16.3 8.6) (11.com Weakening prices of Baijiu brands Page 10 42.9 (10.0 0.0 0.0) (3.3 9.7) (22.7) 8.0) 0.7) (5.8) 0.1 54.0 36 0.8) 1.0 37.6 (18.4) (3.6) 2.7 0.1 Chinese liqueur Wuliangye 52 53 Moutai Guojiao1573 52 Langjiu Source: TJKX.6 42.4) (13.4 (8.6) (10.3 72.1) Wine Greatwall Huaxia 95 Changyu Cabernet Dynasty Cabernet Weilong Cabernet (23.3 (4.5 0.6 36.5 4.8) (13.1) 3.5) (5.6 0.7) (5.2) (0.8) (5.8) 31.6 (2.9) (12.2 62.6) 42.2 0.0 (5.9 3.8 (16) Beer brands raising ASP .1 15.7 31.6 68.4 (18.4 70.China / Hong Kong Monthly Chart Book Food & Beverage Price Trend of products of major F&B brands in China Pricing of F&B brands Price change of Food & Beverage goods by brands in China Apr2012 y-o-y % m -o-m % Mar2012 YTD y-o-y % y-o-y % m -o-m % YTD y-o-y % Beer Snow light Tsingtao Yanjing Budweiser Carlsberg Harbin Heineken 22.3 (4.9 (24.

1 (2.1 (30.6 4.4) (125.3 (7.2) Soybean oil Argentina 2.3) (2.2) (0.4) (15.9) (3.5) (4.9) 0.1 2.3) (16.2 (4.8) (7.5) (19.6) White sugar Brazil (24.2 (142.7) (4.0 (0.5) Rice China 14.7) (19.1 2.2 Corn China 10.4) 10.6) (10.2) Cocao ( ICE ) (29.2) 899.9 1.4 8.2 (8.9 11.1 Barley Canada 19.0) (3.8 2.9 2.6) (14.1) (22.2 6.5) 3.9) (6.0) (6.0) White sugar China (7.5) (3.5 (3.0) 2.8 7.9) Crude Palm Oil (KLCE) 5.1) (5.2) 1.9) (179.0 2.6 (5.3 Whole milk powder New Zealand (17.3) 2.7) (4.1) 1.5 (8.4 3.9) 0.7 (10.5) Skimmed milk powder New Zealand (18.6) 2.8 (1.5 9.3) (11.9 2.0 2.0) (0.9 (7.3 2.8) Dairy Raw milk China Oil crushing China Crush margin* Other agricultural goods Feedstuff Soybean meal ( CBOT ) DDGS (26-28%) Southern China Packaging PET China Aluminum China Tin LME * RMB/ton Source: Bloomberg.9) (7.6) Coffee ( ICE ) (36.3) (3.1) 1.8) (30.4) (4.3) (6.6 2.6 (11.1) (3.4) (25.3) (23.5) (412.9 7.0 Soybean CBOT 4.8) (31.2 1.8) (218.5) (22.8 11.3) (2.0) (206.7) 5.8) (0.4) 1.2) (72.8) (22.1) (7.5 10. CEIC Grain prices continued to hike Crush margin turned positive for the first time in the past 12 months Rebounding soybean price for lower yield in South America Page 11 .3) 10.1 (7.9 11.1) (12.1) (7.9) 6.7) (8.6 20.3) (25.5) 7.8 (12.1) (1.0) 3.4 10.5) (0.9 10.9 (0.0) (3.1 7.9) (7.7 (5.5 1.5) (10.0 (8.4) (2.8) (31.2) (1.7) Orange Juice (NYCE) (10.3) (6.1) (21.4 6.2) (1.5) (12.7) (7.9 0.5) (3.5 5.5) (8.2) (15.China / Hong Kong Monthly Chart Book Food & Beverage Raw Material Costs Trend Pricing change of major raw materials Price change of Raw materials y-o-y % m-o-m % Apr2012 YTD y-o-y YTD vs.4) (0.0) (6.2) (2.6) (22.5 4.5 16.1) (20.8) (0.6) (24.3) (6.3) (11.5 17.1) (3.4) (7.0) (4.5) (30. FY11 % % y-o-y % m-o-m % Mar2012 YTD y-o-y YTD vs.0 (0.9 8.8) (9.1) (21.6) (2.8 1.6) 5. FY11 % % Grain Wheat China (8.4 4.3) (9.5 4.0 11.

560 11 135.6 79.170 14.9) 290 16.0 230 666.974 10.2 9 670 15.6 0.0 1.7 6.0 Wine* 31.0 63.1 8.3 516 (25.2 587 231.830 65.3 270 0.4) 390.7 2.7 136 7.0 210 373 219.0 20.272 40782.630 10 0.9 16.1 52.140 7 374.3) .3) 59 22.440 13.8 1.4 86 Wheat Flour 1 Palm oil (11.4 251.920 3 8.5 1.9 78.0 7.548 220 143.0 0.754 0 Sugar 90 350.196 137.1 550 34. DBS Vickers Import of sugar and corn surges significantly Disappointing wine import in 1Q12 affected by the weak macro Page 12 Total volum e 2011 (16.China / Hong Kong Monthly Chart Book Food & Beverage China Export and Import of F&B Goods China Export and Import Feb2012 Im port Agricultural m aterials Volum e 000 tons Feb2012 Export YTD YTD y-o-y Volum e % % y-o-y Total volum e 2011 Volum e 000 tons Rice 66 186.700 (0.7 126.9) 2.4 1.7 Casing 1.776 3 *'000 litre Source: CEIC.258 2 28.4 Barley 100 37.1 Edible oil Soybean oil Soybean 22 YTD YTD y-o-y Volum e % % y-o-y 32.7 51 3.1 122 140 27.1 1.5 4.2 104 28.8 (22.4 598 Corn 521 49440.

50 1.00 4.00 2.000 Jun2011 10.50 Sep2011 (10.0) Sep2011 1.00 Aug2011 (5.00 0.00 Beer Retail price: Tsingtao 3.0 Apr2011 5.50 2.00 Source: CEIC.0 6.50 1. TJKX Page 13 .000 May2011 20.00 1.50 3.50 3.000 Mar2011 y-o-y Jan2011 Yoy growth% Feb2011 Production volume Jan2011 Mar2012 0 Feb2012 Jan2012 Production volume Dec2011 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 mn litre Nov2011 Oct2011 Sep2011 Aug2011 Jul2011 Jun2011 May2011 Apr2011 Mar2011 Feb2011 China / Hong Kong Monthly Chart Book Food & Beverage Glance by sub-sector Beer Industry highlight Beer Retail price rmb/bottle 4.50 rmb/bottle 4.000 Feb2011 7.50 4.00 1.50 3.00 0.00 2.50 0.00 0.000 Jun2011 5.50 0.000 Jul2011 0.0 Jul2011 2.00 2.50 1.000 May2011 15.50 2.50 3.0) Oct2011 1.Jan2011 Beer Retail price: Snow Light rmb/bottle 3.00 3.0 Mar2011 25.0 Apr2011 4.00 Mar2012 Feb2012 Jan2012 Dec2011 Nov2011 Feb2012 Jan2012 Dec2011 Nov2011 Oct2011 0.0 Aug2011 2.

0 500.0 Page 14 Nov2011 Jan2012 Mar2012 Nov2010 Jan2011 Mar2011 May2011 Jul2011 Sep2011 Jul2009 Sep2009 Nov2009 Jan2010 Mar2010 May2010 Jul2010 Sep2010 Jan2012 Mar2012 Nov2011 Jul2011 Sep2011 May2011 Jan2011 Mar2011 Sep2010 Nov2010 Jul2010 Mar2010 May2010 Jan2010 Sep2009 Source: CEIC Nov2009 Jul2009 0.0 2.0 0.500.000.000.China / Hong Kong Monthly Chart Book Food & Beverage Input cost trend Materials: Barley price ( Canadian ) Materials: Rice price ( China ) RMB/ton 3.500.5 2.5 3.5 1.0 2.000.0 1.5 0.0 1.0 2.5 4.0 1.0 .0 US$/BSL 4.0 3.

0 20.0 10.000 100.000 120.0 Import: Wine 30.0 80.0 0.0 Apr2011 30.0 Jun2011 20.000 40.0 40.0 '000 litre 60.0 Aug2011 40 Jul2011 10.000 80.0 100.0 Jan2012 Feb2012 (20.0 60.0) Dec2011 0 Oct2011 (10.000 0 Source: CEIC Page 15 .0) Nov2011 20 Sep2011 0.0 180.000 20.0 May2011 40.0 60.y-o-y Wine Retail price: Changyu Cabernet rmb/75cl 140.0 40.0 20.0 50.0 120 Mar2011 60 Jan2011 Yoy growth% Feb2011 Production volume Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 80 Jan2012 140 Feb2012 100 Dec2011 Production volume Nov2011 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 mn litre Oct2011 Sep2011 Aug2011 Jul2011 Jun2011 May2011 Apr2011 Mar2011 Feb2011 Jan2011 China / Hong Kong Monthly Chart Book Food & Beverage Wine Industry highlight Wine Retail price: Greatwall Huaxia 95’ rmb/75cl 200.0 160.0 120.0 140.0 0.

0 1.0 1.0 10.0 20.000 20.0 Feb2012 500 Mar2012 40.0 '000 tons Nov2011 60.0 1.0 2.500 15.0 0 0.0 500 5.500 25.500 15.0 Sep2011 70.0 2.0 5.000 20.0 9.0 Production volume y-o-y Apr2012 60 40 30.0 7.0 2.0 4.0 1.0 2.0 5.500 25.0 140 120 Jul2011 160 Aug2011 Yoy growth% Jun2011 Production volume – Milk powder May2011 '000 tons y-o-y Apr2011 Yoy growth% Mar2011 Production volume Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 '000 tons Feb2011 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Production volume – Total Dairy Jan2011 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 China / Hong Kong Monthly Chart Book Food & Beverage Dairy Industry highlight Production volume – Liquid milk Yoy growth% y-o-y Milk Retail price rmb/kg 10.0 0.0 0.000 10.0 3.0 Jan2012 20 0 Production volume Dec2011 100 80 Oct2011 50.0 1.0 6.0 8.0 0 0.000 10.Source: CEIC Page 16 2.0 .

0 Aug2011 8.0 2.0 May2011 12.0 Feb2011 Mar2012 Apr2012 Feb2012 Dec2011 Jan2012 Nov2011 Sep2011 Oct2011 Jul2011 Aug2011 Jun2011 Apr2011 May2011 Mar2011 Jan2011 Feb2011 Yogurt Retail price Jan2011 Mar2012 Apr2012 Jan2012 Feb2012 Sep2011 Oct2011 Nov2011 Dec2011 May2011 Jun2011 Jul2011 Aug2011 Jan2011 Feb2011 Mar2011 Apr2011 China / Hong Kong Monthly Chart Book Food & Beverage Infant formula local brands Retail price: Mengniu milk rmb/pack 3.0 110.0 120.0 Dec2011 2.0 0.0 Jul2011 130.0 Jan2012 80.0 4.0 Mar2011 Infant formula foreign brands Jan2011 Feb2011 Mar2011 Apr2011 rmb/kg 14.0 150.0 Sep2011 Oct2011 Nov2011 Dec2011 6.5 1.0 80.0 100.0 90.0 170.0 Sep2011 120.0 180.0 Feb2012 0.0 190.0 Jan2012 Feb2012 Mar2012 Apr2012 90.0 Apr2011 rmb/kg 150.0 Source: CEIC Page 17 .0 140.0 160.5 0.0 130.0 Jun2011 140.5 2.0 Oct2011 100.0 May2011 Jun2011 Jul2011 Aug2011 10.0 Nov2011 110.Mar2012 rmb/kg 200.0 1.

0 2.0 4.000.0 0.5 US$/ton 6.2.0 0.0 0.0 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Input cost trend Whole milk powder New Zealand 4.0 5.0 Skimmed milk powder New Zealand US$/ton 6.0 1.0 .5 3.0 2.000.0 1.000.500.000.0 3.5 1.0 3.0 0.5 2.000.0 2.000.000.000.0 0.000.0 Source: CEIC Page 18 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 Raw milk price – China RMB/kg 3.0 500.000.0 5.0 1.000.0 1.0 Source: CEIC Feedstuff: Corn rmb/ton 3.000.000.0 1.000.500.000.0 2.

800 1.000 40.China / Hong Kong Monthly Chart Book Food & Beverage Soft drink Industry highlight Production volume – Soft drink Production volume – Carbonated drink Yoy growth% 14.0 12.0 (40.0) 0 0.600 1.200 1.0 4.0 250 70.0 40.0 6.400 1.000 50.000 1.0 20.0 150 40.000 800 600 400 200 0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 0 Yoy growth% '000 tons Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 '000 tons Production volume y-o-y Source: CEIC Page 19 .0 80.0 (20.0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 0.0) Production volume 40.0) Production volume y-o-y Production volume – Tea Yoy growth% 2.000 (10.400 1.0 0.000 0.600 1.0 2.0 200 60.000 30.0 100 30.0 Production volume 60.0 10.000 10.0 50.000 800 600 400 200 0 300 80.0 (20.000 1.0 8.0 y-o-y Production volume – Juice '000 tons 80.0 20.200 1.0 y-o-y Yoy growth% '000 tons 100.0 60.0) 50 20.0) Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 (40.0 2.000 20.800 1.0 10.

0 1.000 50.China / Hong Kong Monthly Chart Book Food & Beverage Production volume – Water Yoy growth% '000 tons 6.000 20.0 5.0 70.000 60.000 40.0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 0 Production volume Source: CEIC Page 20 y-o-y .000 10.0 3.0 4.0 0.0 2.0 30.000 80.

0 4.0 12.0 0.0 25.0 0.000.000.0 5.000.0 2.000.000.0 8.000.0 5.000.000.000.000.000.000.000.0 7.000.0 16.000.000.0 RMB/ton 9.0 14.000.0 8.000.0 4.0 20.000.0 10.0 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Input cost trend Sugar Tin US$/ton 35.000.0 15.0 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 PET RMB/ton 18.000.0 Page 21 .000.0 15.0 20.000.000.0 30.0 6.000.000.000.0 1.0 2.0 0.0 10.0 6.000.000.000.0 10.0 3.0 5.Aluminium RMB/ton 25.0 0.

0 1.500.0 0.0 2.0 500.0 3.Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Orange juice US$ton 5.000.000.500.0 3.0 4.0 4.500.000.000.0 2.0 1.000.500.0 Source: CEIC Page 22 .

500 2.0 15.500 3.000 500 0 45.000 2.Fresh & Refrigerated Meat 5 1 0 0 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Apr2012 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Slaughter Industry highlight Hog price Rmb/kg 25 20 15 10 5 0 Slaughter profit Rmb/kg 30 Rmb/kg 7 25 6 5 4 3 2 Source: CEIC Page 23 .0 25.'000 tons Yoy growth% 3.000 1.0 10.0 Production volume y-o-y Ex-factory pork price 20 15 10 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Apr2012 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Production volume .0 20.0 0.0 5.500 1.0 35.0 40.0 30.

000 0 410.000 440.000 43.000 15.20.000 44.000 9 49.000 '000 480.000 45.000 10.000 430.000 460.000 Number of sow pig stock 48.000 450.000 25.000 4 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 O ct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 O ct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 China / Hong Kong Monthly Chart Book Food & Beverage Number of pig stock '000 30.000 Source: CEIC Page 24 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 O ct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 O ct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Number of slaughtered hog '000 50.000 470.000 8 47.000 5.000 5 46.000 420.000 Pig to feedstuff ratio X 7 6 3 2 1 0 .

0 37.0 34.0 Jan2012 35.0 Feb2012 17.5 Nov2011 rmb/kg 19.0 40.0 10.0 32.0 45.0 Source: CEIC Page 25 .0 Jun2011 1.0 36.0 Mar2011 2.0 Jan 2011 F eb 2011 M ar2011 A p r2011 M ay 2011 Ju n 2011 Ju l2011 A u g 2011 S ep 2011 O ct2011 N o v 2011 D ec2011 Jan 2012 F eb 2012 M ar2012 A p r2012 Rmb/ton 3.0 33.0 31.0 Lamb rmb/kg 50.Jan2011 16.0 0.0 Aug2011 500.000.0 16.0 Mar2012 30.0 25.500.0 May2011 1.0 15.0 30.0 Oct2011 18.000.0 29.0 5.5 15.5 Apr2012 20.5 Dec2011 18.0 38.0 17.000.0 35.0 Apr2011 2.0 Feb2011 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China DDGS Southern Jan2011 Apr2012 Mar2012 Feb2012 Jan2012 Dec2011 Nov2011 O ct2011 Sep2011 Aug2011 Jul2011 Jun2011 May2011 Apr2011 Mar2011 Feb2011 China / Hong Kong Monthly Chart Book Food & Beverage Beef rmb/kg 39.500.0 Sep2011 Chicken Jul2011 0.

0 100.Piglet price 5 0 Source: CEIC Page 26 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Mar2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Input cost trend Soybean meal Rmb/kg 40 US$/ton 450.0 15 200.0 20 250.0 35 400.0 10 150.0 .0 25 300.0 50.0 30 350.0 0.

0 500.500.0 1.0 3.0 10.0 2.0 60.0 500.Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 '000 tons 900 800 700 600 500 400 300 200 100 0 Production volume Wheat RMB/ton 3.0 0.0 40.0 (10.000.000.0 20.500.500.0 1.500.0 4.0 2.500.0 2.000.0 1.0 50.0 2.0 0.0 Source: CEIC Page 27 .0 70.0 1.000.0) y-o-y Source: CEIC Input cost trend Palm oil US$/ton 4.000.000.0 0.0 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 O ct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 O ct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 O ct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 O ct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 O ct2011 Dec2011 Feb2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Instant noodle Industry highlight Production volume Yoy growth% 80.0 3.500.000.0 30.

200.0 1.0 Jul2011 0 Aug2011 200 900.200.0 1.0 .400.China / Hong Kong Monthly Chart Book Food & Beverage Baijiu (White liqueur) Industry highlight Production volume Moutai 53 Degrees Retail price Yoy growth% 1.0 Jun2011 400 May2011 600 Apr2011 800 Mar2011 1.0 300.400 60.0 20.0 Feb2012 1.000.0 200.0 Dec2011 Guojiao 1573 Retail price Dec2011 Wuliangye 52 Degrees Retail price Oct2011 Source: National Bureau of Statistics of China Nov2011 Source: National Bureau of Statistics of China Nov2011 Sep2011 y-o-y Oct2011 Jan2011 Production volume 0.0 40.0 Mar2011 0.0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Jan2012 Mar2012 Apr2012 Mar2012 Apr2012 1.0 600.000 rmb/500ml 2.0 600.0 Feb2012 rmb/500ml 1.0 0.400.400.0 10.800.0 Jan2011 200.0 1.0 800.0 30.000.0 800.0 Feb2011 400.200.0 2.0 400.500.200 50.0 Feb2011 '000 tons 1.0 600.0 1.100.0 Source: CEIC Page 28 Sep2011 Aug2011 Jul2011 Jun2011 May2011 Apr2011 Mar2011 Jan2011 Apr2012 Mar2012 Jan2012 Feb2012 Dec2011 Oct2011 Nov2011 Sep2011 Jul2011 Aug2011 Jun2011 Apr2011 May2011 Feb2011 0.600.0 Jan2012 rmb/500ml 1.0 1.0 1.

2 20.4 20.500 2.500 1.8 Source: CEIC Page 29 .500 4.0 13.5 13.000 1.8 Feb2012 Mar2012 Apr2012 Apr2012 Jan2012 Jan2012 Feb2012 Dec2011 Dec2011 Mar2012 Oct2011 Nov2011 Oct2011 Sep2011 Sep2011 Nov2011 Jul2011 Aug2011 Jul2011 Aug2011 Jun2011 11.0 Apr2011 30.0 May2011 11.Jan2011 y-o-y Peanut oil price Salad oil price rmb/litre 24.4 12.2 23.5 12.0 22.0 Apr2011 40.500 3.0 11.5 21.8 22.0 Mar2011 60.0 May2011 20.5 13.000 500 0 Feb2012 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 '000 tons Dec2011 Nov2011 Oct2011 Sep2011 Aug2011 Jul2011 Jun2011 May2011 Apr2011 Mar2011 Feb2011 China / Hong Kong Monthly Chart Book Food & Beverage Edible oil Industry highlight Soybean oil price rmb/litre 12.2 12.0 Jun2011 10.0 Feb2011 Jan2011 Yoy growth% Feb2011 Production volume Jan2011 Apr2012 Mar2012 Production volume Jan2012 5.4 10.0 14.000 3.6 11.5 23.0 19.000 2.2 0.8 11.0 rmb/litre 14.0 Mar2011 50.6 21.0 13.0 13.000 4.

Rmb/ton 600.400.0) Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China Crush margin Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 Oct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 Oct2011 Nov2011 Dec2011 Jan2012 Feb2012 Jan2010 Feb2010 Mar2010 Apr2010 May2010 Jun2010 Jul2010 Aug2010 Sep2010 O ct2010 Nov2010 Dec2010 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul2011 Aug2011 Sep2011 O ct2011 Nov2011 Dec2011 Jan2012 Feb2012 China / Hong Kong Monthly Chart Book Food & Beverage Argentina crude soybean oil FOB US$/ton 1.0 1.0) (500.0 Import: Soybean oil '000 ton 300 250 200 150 100 200 50 0 .0 600.000.0 400.0 300.600.0 800.0 0.0 100.0 500.0) Import: Soybean '000 ton 900 800 700 600 500 400 300 100 0 Source: CEIC Page 30 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 (200.0) (400.800.0 200.0 1.0 (100.0) (300.0 1.200.0 200.0 400.0 1.0 0.

0 Mar2011 US$/ton 600.5 3.0 2.0 Jun2011 300.0 0.0 3.0 1.0 Source: CEIC Page 31 .0 Jul2011 200.5 4.0 Apr2011 400.0 May2011 500.0 Apr2012 Mar2012 Feb2012 Jan2012 Dec2011 Nov2011 Oct2011 Sep2011 Aug2011 100.0.5 2.5 1.0 Feb2011 Soybean price Jan2011 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Input cost trend Rapeseed price rmb/lkg 4.5 0.

0) (20.000.0 500.0 20.500.0 3.0 30.0) Production volume y-o-y 0.0) (30.000.0 1.0 3.0 Oct2007 Dec2007 Feb2008 Apr2008 Jun2008 Aug200 Oct2008 Dec2008 Feb2009 Apr2009 Jun2009 Aug200 Oct2009 Dec2009 Feb2010 Apr2010 Jun2010 Aug201 Oct2010 Dec2010 Feb2011 Apr2011 Jun2011 Aug201 Oct2011 Dec2011 Feb2012 Apr2012 China / Hong Kong Monthly Chart Book Food & Beverage Confectionary Industry highlight Input cost trend Production volume Cocoa US$/ton 4.000.0 2.0 0.0) (40.0 .0 50.0 2.0 40.000.500.500.Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 '000 tons Source: CEIC Page 32 Yoy growth% 300 250 200 150 100 50 0 60.0 10.0 1.0 (10.

0 40.0) (20.0 10.0) Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 900 800 700 600 500 400 300 200 100 0 Production volume y-o-y Source: CEIC Page 33 .0) (40.0 0.0 20.0 50.0 30.China / Hong Kong Monthly Chart Book Food & Beverage Flavouring Industry highlight Production volume Yoy growth% '000 tons 60.0) (50.0) (30.0 (10.

0 100 0.0 200 20.0 (10.China / Hong Kong Monthly Chart Book Food & Beverage Ice cream Industry highlight Production volume Yoy growth% '000 tons 350 50.0 150 10.0 300 40.0 250 30.0) 0 (20.0) Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 50 Production volume Source: CEIC Page 34 y-o-y .

Temperature yoy change 15 15.000) (15) (20.000) Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 China / Hong Kong Monthly Chart Book Food & Beverage Monitor of F&B climate in China Weather snapshot After a chilling 1Q.000) (25.000 5. April is a warm season.Celsius 5 0 (5) Shanghai .000 20.000 10 10.Temperature yoy change Celsius 15 10 5 0 (5) (10) (15) Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Beijing .Precipitation yoy change Macrons 25.000) (10.000) Source: Bloomberg Page 35 . Beijing .000 0 (10.000 0 (5. which should benefit beverage and beer sales.000) (5.000) Shanghai .000) (20.000 (10) (15.000) (15.Precipitation yoy change Macrons 5.000 10.000 15.

000) (20) (40.000) (5.000 (10.000) (15.000) 5 5.000 15.Temperature yoy change 15 40.000 0 0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 China / Hong Kong Monthly Chart Book Food & Beverage Guangdong .000 (10.Celsius 0 (5) Chengdu .000) (15) (30.000 5 20.000 10.000) .Temperature yoy change Celsius 15 10 (5) (10) (15) Source: Bloomberg Page 36 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Guangdong .000 10 30.000) 0 Chengdu .Precipitation yoy change Macrons 20.000) (20.000 (10) (20.Precipitation yoy change Macrons 10.

China / Hong Kong Monthly Chart Book Food & Beverage PE & PB Band Charts P/E band charts . DBS Vickers Page 37 .Food & beverage Ajisen China (538 HK) China Foods (506 HK) Share Price (HK$) 30 25 70x Share Price (HK$) 16 55x 14 50x 38x 12 20 40x 15 24x 10 26x 10 8 6 5 9x 14x 4 2 Mar-12 2x China Mengniu (2319 HK) Share Price (HK$) 50 2011 2009 2007 2005 2003 2001 0 1999 Sep-11 Mar-11 Sep-10 Mar-10 Sep-09 Mar-09 Sep-08 Mar-08 Sep-07 Mar-07 0 China Yurun (1068 HK) 33x 27x 45 40 Share Price (HK$) 40 35 21x 35 30 15x 25 20 15 9x 10 5 32x 30 25 25x 20 19x 15 13x 10 7x 5 Dynasty Fine Wine (828 HK) Oct-11 Oct-10 Oct-09 Oct-08 Oct-07 2012 2011 2010 2009 2008 2007 2006 2005 2004 Oct-06 Oct-05 0 0 Tingyi Holding (322 HK) Share Price (HK$) 8 Share Price (HK$) 30 7 43x 34x 25 6 24x 20 50x 15 2 39x 28x 10 1 17x 0 7x 14x 5x 5 2012 2010 2008 2006 0 2004 Jan-12 Jan-11 Jan-10 Jan-09 Jan-08 Jan-07 Jan-06 Jan-05 3 2002 4 2000 5 Source: Bloomberg.

DBS Vickers Mar-08 2 0 .Food & beverage (continued) Tsingtao Brewery (168 HK) Share Price (HK$) 60 53x Want Want China (151 HK) 41x 30x 50 40 Share Price (HK$) 14 12 32x 10 28x 8 23x 6 18x 18x 30 20 14x 7x 10 4 Page 38 Jul-12 Mar-12 Jul-11 Nov-11 Mar-11 Nov-10 Jul-10 Mar-10 Nov-09 Jul-09 Mar-09 Jul-08 Nov-08 2011 2009 2007 2005 2003 2001 1999 Source: Bloomberg.China / Hong Kong Monthly Chart Book Food & Beverage P/E band charts .

1x 35 3.3x 20 4.8x 5 Dynasty Fine Wine (828 HK) Share Price (HK$) 6 Oct-11 Oct-10 Oct-09 Tingyi Holding (322 HK) 3.3x 5 Oct-08 Oct-07 2012 2011 2010 2009 2008 2007 2006 2005 2004 Oct-06 Oct-05 0 0 2.6x 4 1.6x 0 Source: Bloomberg.2x 20 4.1x 10 3.2x Mar-12 China Mengniu (2319 HK) Share Price (HK$) 50 9.1x 10 5 0.6x 10 2.5x 5 0 2012 2010 2008 2006 2004 2002 2000 Jan-12 Jan-11 Jan-10 Jan-09 Jan-08 Jan-07 Jan-06 Jan-05 0.2x 2 0.4x 15 2 1.5x 25 20 25 1.2x 6 10 2.2x 2.1x 5.Food & beverage Ajisen China (538 HK) China Foods (506 HK) Share Price (HK$) 25 Share Price (HK$) 12 7.3x 30 3.7x 2011 2009 2007 2005 2003 2001 0 1999 Sep-11 Mar-11 Sep-10 Mar-10 Sep-09 Mar-09 Sep-08 Mar-08 Sep-07 Mar-07 0 China Yurun (1068 HK) 7.China / Hong Kong Monthly Chart Book Food & Beverage P/B band charts .4x 45 40 Share Price (HK$) 40 4.7x 4 5 1.9x 3 Share Price (HK$) 30 8. DBS Vickers Page 39 .5x 5.2x 1.1x 25 6.2x 35 30 2.6x 15 20 15 10 1.7x 8 15 4.3x 1 0.

2x 0 Mar-08 10 .China / Hong Kong Monthly Chart Book Food & Beverage P/B band charts .3x 10 30 8.3x 8 1.3x 4 Page 40 Jul-12 Mar-12 Nov-11 Jul-11 Mar-11 Nov-10 Jul-10 Mar-10 Jul-09 Nov-09 Mar-09 Jul-08 2011 2009 2007 2005 2003 2001 1999 Source: Bloomberg.Food & beverage (continued) Tsingtao Brewery (168 HK) Share Price (HK$) 60 6.3x 12 10.2x 40 Share Price (HK$) 16 14 12.7x 20 6.3x 6 4. DBS Vickers 2 Nov-08 0.1x Want Want China (151 HK) 4.6x 50 3.

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Any recommendation contained in this document does not have regard to the specific investment objectives. This report is intended for clients of DBSV Group only and no part of this document may be (i) copied. opinions. It is being distributed in the United States by DBSV US. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. a direct wholly-owned subsidiary of DBS Vickers Securities Holdings Pte Ltd ("DBSVH").rbr. estimates. >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps. or indirectly. DBSVH is a wholly-owned subsidiary of DBS Bank Ltd. their directors. GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers (Hong Kong) Limited (“DBSVHK”). ratings or risk assessments stated therein. opinions. in part or in whole. photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVR. DBS Vickers Securities (USA) Inc ("DBSVUSA")"). please contact your DBSV salesperson.China / Hong Kong Monthly Chart Book Food & Beverage DBSV recommendations are based an Absolute Total Return* Rating system. Opinions expressed are subject to change without notice.S.

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