Market review last week
Last week, the light industry manufacturing industry underperformed CSI 3001.20pct: SW light industry manufacturing (- 5.71%) vs CSI 300 (- 4.51%); The top five weekly gains of individual stocks were: packaging and printing – Shenzhen Yuto Packaging Technology Co.Ltd(002831) (2.41%), Shanghai Yilian (1.43%), Shenzhen Prince New Materials Co.Ltd(002735) (- 0.80%), Shenzhen Jinjia Group Co.Ltd(002191) (- 1.73%) and Jiamei Food Packaging (Chuzhou) Co.Ltd(002969) (- 2.64%); Household goods – Guangdong Hotata Technology Group Co.Ltd(603848) (1.04%), Everjoy Health Group Co.Ltd(002162) (- 0.45%), Xlinmen Furniture Co.Ltd(603008) (- 0.66%), Keeson Technology Corporation Limited(603610) (- 0.81%) and Guangdong Songfa Ceramics Co.Ltd(603268) (- 1.24%); Papermaking – Quzhou Wuzhou Special Paper Co.Ltd(605007) (0.00%), Guangdong Songyang Recycle Resources Co.Ltd(603863) (- 0.23%), Fujian Qingshan Paper Industry Co.Ltd(600103) (- 1.86%), Minfeng Special Paper Co.Ltd(600235) (- 2.58%) and Shanying International Holdings Co.Ltd(600567) (- 2.79%); Entertainment supplies – St Qunxing (4.74%), Goldlok Holdings(Guangdong) Co.Ltd(002348) (3.46%), Zhejiang Natural Outdoor Goods Inc(605080) (0.00%), Guangzhou Pearl River Piano Group Co.Ltd(002678) (- 2.38%) and Chuangyuan culture (- 3.77%).
This week’s view
Before the festival, listed companies in the light industry manufacturing industry intensively released performance forecasts. The differentiation of Listed Companies in the industry is obvious in the annual report of 2021. We believe that this year’s light industry manufacturing mainly has two main directions: 1) consolidating the position of industry leader and steady growth; 2) Focus on the ability of high-quality companies to gradually reverse difficulties.
Household goods: as one of the key industries of “steady growth”, the regulation of real estate tends to be mild and the policy underpinning is obvious. The household industry is expected to usher in the improvement of the marginal demand. From the data, the overseas demand of the furniture market continued to improve last year, and the housing construction in key beneficiary countries continued to grow. The demand is still likely to be released this year. China’s furniture sales have recovered significantly and are resilient enough. At the same time, the completed area of residential commercial housing has maintained a steady growth, and the completion cycle will continue steadily during the year. The household sector has the possibility of double repair of performance estimates this year, and some stocks have long-term allocation value.
Packaging and printing: under the expectation that the price of raw materials will stabilize and the freight rate will decline, the profits of the packaging sector will be gradually repaired, and the field of metal packaging is expected to benefit. At the end of last year, the state successively issued supervision policies and industry standards to promote the standardized development of e-cigarettes from “three noes” varieties, and the 100 billion market will gradually show its edge.
Entertainment supplies: in 2021, the retail sales of China’s office supplies industry reached 412.16 billion yuan, an increase of 18.8%. At present, the marginal impact of the double reduction policy is gradually decreasing, and the early overestimation of individual stocks has been digested.
Recommended combinations: Oppein Home Group Inc(603833) (603833), Jason Furniture (Hangzhou) Co.Ltd(603816) (603816), Shenzhen Jinjia Group Co.Ltd(002191) (002191), Shanghai M&G Stationery Inc(603899) (603899).
This week’s event reminder
Runner(Xiamen) Corp(603408) : lifting the ban Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) : lifting the ban
Guangzhou Pearl River Piano Group Co.Ltd(002678) : convening of the general meeting of shareholders Xianhe Co.Ltd(603733) : convening of the general meeting of shareholders
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
