Key investment points:
Market review last week
Last week, Shanghai and Shenzhen Light Industry Group Co., Ltd. (SW: 300.08%); The top five weekly gains of individual stocks were: packaging and printing – Guangdong New Grand Long Packing Co.Ltd(002836) (10.70%), Shandong Chiway Industry Development Co.Ltd(002374) (7.77%), Shanghai Yilian (5.58%), Suzhou Hycan Holdings Co.Ltd(002787) (5.37%) and joy Zhixing (4.98%); Household products – Yotrio Group Co.Ltd(002489) (24.62%), Guangdong Songfa Ceramics Co.Ltd(603268) (14.88%), Everjoy Health Group Co.Ltd(002162) (12.44%), Yayi Technology (7.88%) and Loctek Ergonomic Technology Corp(300729) (6.88%); Papermaking – Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) (10.15%), Minfeng Special Paper Co.Ltd(600235) (9.95%), Quzhou Wuzhou Special Paper Co.Ltd(605007) (5.06%), Yueyang Forest & Paper Co.Ltd(600963) (4.92%) and Zhejiang Kan Specialities Material Co.Ltd(002012) (4.18%); Entertainment supplies – mubang high tech (11.40%), Shanghai M&G Stationery Inc(603899) (8.27%), Hailun Piano Co.Ltd(300329) (7.94%), Guangzhou Pearl River Piano Group Co.Ltd(002678) (3.85%) and Impulse (Qingdao) Healthtechco.Ltd(002899) (1.84%).
This week’s view
Household goods: on February 18, Heze City reduced the loan proportion of the first house from 30% to 20%,. On the same day, many banks in Chongqing and Ganzhou, Jiangxi have reduced the down payment ratio of the first house loan to 20%. In January this year, the sales volume of China’s building materials home stores increased by 31.52%, an increase of 6.07pct compared with the same period last year. The year-on-year accelerated growth of sales of building materials home stores proves that the demand of home market is gradually increasing to a certain extent. It takes time for demand to be transmitted to performance, and we are firmly optimistic about the possibility of double repair of performance and valuation of the sector during the year. At the same time, the “Matthew effect” of the industry will become more and more obvious, and the long-term allocation value of leading stocks deserves attention.
Packaging and printing: last Wednesday, the European Parliament recognized the potential contribution of e-cigarettes to smoking cessation, and e-cigarettes ushered in a positive view in Europe. 94% of the people in the Philippines agreed that the government should formulate reasonable regulatory policies for e-cigarettes and encourage smokers to switch to harm reducing products such as e-cigarettes. Under the warming attitude towards e-cigarette products outside China, we are optimistic about the layout of the whole industrial chain in the field of new tobacco and enterprises with good technology precipitation.
Papermaking: the European paper giant UPM group and the paper workers’ association may trigger a strike if negotiations fail. On February 11, paperexcellence announced a reduction in production due to insufficient transportation capacity. At present, long and short factors coexist in China’s paper industry. The short-term supply chain crisis in Europe and Canada may boost the rise of international pulp prices and trigger the return of some orders.
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
Shenzhen Prince New Materials Co.Ltd(002735) : convening of the general meeting of shareholders Yayi Technology: convening of the general meeting of shareholders
Huangshan Novel Co.Ltd(002014) : convening of the general meeting of shareholders Wangli Security & Surveillance Product Co.Ltd(605268) : lifting the ban
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
