Follow up comments
On February 23, 2022, the Shanghai Composite Index closed at 3489.15 points, up 0.93%; The Shenzhen Component Index closed at 13549.99 points, up 1.90%. The Chongqing composite index, which we focus on, closed at 3667.77 points, up 0.75%; Sichuan composite index closed at 9277.09 points, up 1.59%. The top three stocks of Listed Companies in Sichuan and Chongqing are: Yimikang Tech.Group.Co.Ltd(300249) (300249, 20.01%), Pku Healthcare Corp.Ltd(000788) (000788, 10.06%), Sichuan Yahua Industrial Group Co.Ltd(002497) (002497, 10.00%). The 42 companies we focused on rose by an average of 1.76%, of which the top three stocks were: Sichuan Yahua Industrial Group Co.Ltd(002497) (002497, 10.00%), Chengdu Jafaantai Education Technology Co.Ltd(300559) (300559, 7.82%), Mianyang Fulin Precision Co.Ltd(300432) (300432, 6.19%). By industry, the top three sectors in Sichuan and Chongqing are: computer (3.88%), national defense and military industry (2.75%) and automobile (2.52%).
According to the data released by Sichuan Provincial Department of economy and information technology, in 2021, the province’s food and beverage industry achieved an operating revenue of 1003.02 billion yuan, an increase of 10.3%, with a total increase of 183.04 billion yuan over the end of 2018, officially stepping into a trillion level industry. Among them, 4 industries, including Shenzhen Agricultural Products Group Co.Ltd(000061) intensive processing, high quality Baijiu, refined Sichuan tea and medicine health, respectively realized 480 billion 400 million yuan, 345 billion 140 million yuan, 24 billion 580 million yuan and 175 billion 700 million yuan respectively, operating 7.4%, 14%, 5.1% and 11.4% respectively, and the Baijiu, a high quality liquor and pharmaceutical health industry, increased by 24.9% and 22% respectively. The economy in Sichuan and Chongqing has recovered rapidly, social consumption is stable and good, and the influence of local food and beverage brands in the consumer market in Sichuan and Chongqing continues to increase. As a key industry in Sichuan and Chongqing, the production and sales of Sichuan wine have maintained steady growth. With the gradual development of Chengdu Chongqing Shuangcheng economic circle, a large number of new and old infrastructure projects will be landing one after another, driving investment in Sichuan and Chongqing areas to be active and promoting Baijiu consumption in the region. The annual performance of Sichuan liquor is expected to be strong, with suggestions for attention: Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) and so on.
Industry dynamics
Chongqing Municipal Development and Reform Commission and Sichuan Provincial Development and Reform Commission jointly issued the overall plan for the coordinated development of Hechuan District, Guang’an City and Changshou District as demonstration areas to promote the coordination of the development strategies of “one district, two groups” in Chongqing and “one trunk and multiple branches” in Sichuan. (China News Network)
Company dynamics
Guoguang Electric Co.Ltd.Chengdu(688776) (688776): released the annual performance express of 2021. In 2021, the company achieved an operating revenue of 593 million yuan, a year-on-year increase of 32.91%, and a net profit attributable to the owner of the parent company of 162 million yuan, a year-on-year increase of 69.48%. Ningbo Solartron Technology Co.Ltd(688299) (688299): released the annual performance express of 2021. In 2021, the company achieved an operating revenue of 1.297 billion yuan, a year-on-year increase of 24.08%, and a net profit attributable to the owner of the parent company of 190 million yuan, a year-on-year increase of 7.18%.
Risk warning: the economic recovery is lower than expected and the risk of covid-19 outbreak.
