Food Safety Hamper Capital Flows

Recently, the media has exposed "

Liang Mingxuan, a researcher in the food industry of CIC, believes that by observing the impact of food safety problems, we can find two prominent problems: on the one hand, companies that break out of scandals will be hit hard, and businesses will face bankruptcy or business difficulties; on the other hand, the state will introduce relevant policies to improve food safety, improve food safety standards, and issue permits for key industries.

Liang Mingxuan pointed out that food safety affects not only the operation of enterprises, but also the investment funds.

First of all, due to the emergence of food safety problems, investors' willingness to invest in the entire food industry will be reduced, and the price earnings ratio of food listed companies will remain low.

After the melamine case broke out in 2008, the domestic listed dairy companies were all down.

Secondly, food safety problems occur frequently. Food enterprises will face the restriction of national policies. The development space of small and medium-sized enterprises will be squeezed and the difficulty of financing will be increased.

As the state improves the access standards of food enterprises and increases the cost of safety inspection, it will accelerate the elimination of small and medium-sized enterprises.

The capital of the food industry will flow to large enterprises, and small and medium-sized enterprises will fall into a vicious circle of financing and operation.

However, due to the emergence of food safety problems, a number of enterprises with investment value have also been created.

Because of the ripple effect of food safety, the price earnings ratio of some listed companies which have not been seriously hit will continue to decline. But with the fear of consumers fading away, the price earnings ratio of these listed companies will still recover.

For example, in 2008, Mengniu's price earnings ratio continued to decline due to melamine cases, but due to the extinction of consumer panic, the P / E ratio has gradually recovered.

In the long run, the investment income of those listed companies that are not directly hit is very large.

In addition, food inspection equipment manufacturing and other industries will also benefit from food safety problems.

Liang Mingxuan once again pointed out that food safety problems are frequent. It is expected that in the short term, the government will improve food safety, and the industry will have a wider impact. Small and medium-sized food enterprises will soon have a shuffle, and the market share of large enterprises will continue to rise.

In the specific food field, there may be a phenomenon that several business tycoons account for the overwhelming majority of the market share.

At that time, the guiding role of food safety in capital market will be more obvious.