Market Review
In the past two weeks, the top five companies in the A-share light industry manufacturing sector were Yotrio Group Co.Ltd(002489) , Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) , Banbao Co.Ltd(603398) , Guangdong Songfa Ceramics Co.Ltd(603268) , Profit Cultural & Creative Group Co.Ltd(300640) . In the past two weeks, the top five companies in the light industry manufacturing sector of Hong Kong stocks were Shuncheng, Shandong Chenming Paper Holdings Limited(000488) , HengAn international, Weida international and comprehensive environmental protection group.
Industry data
In January, the year-on-year growth rate of PPI in furniture manufacturing industry increased slightly; The year-on-year growth rate of PPI in papermaking and paper products industry slowed down: from November to January, the PPI of papermaking and paper products increased by 6.6% / 6.3% / 4.9% year-on-year respectively, and the growth rate in January was – 1.4% higher than that of the previous month; From November to January, the PPI of furniture manufacturing industry increased by 1.0% / 1.5% / 1.6% year-on-year respectively, and the growth rate in January was + 0.1% higher than that of the previous month. Pulp and paper prices have remained stable in the past two weeks, all unchanged month on month. In December, the year-on-year growth of retail sales of consumer furniture (- 3.1%) and cultural and office supplies (+ 7.4%) slowed down, and the growth of daily necessities (+ 18.8%) accelerated. In terms of real estate, the growth rate of new construction area (- 33.1%) and sales (- 19.4%) of real estate continued to fluctuate and decline.
Online data
Focus on the category. The year-on-year growth rate of sales in January continued to fall compared with that in December last year. In January 2022, the sales of residential furniture, office furniture, whole house customization and paper Jiaqing tmall jd.com were 11.1/6/6.1 billion yuan respectively, with a year-on-year growth rate of 2.7% / 8.7% / 4.9% / – 10.2% respectively. Focus on some of the company’s furniture, and the sales volume of tmall flagship stores increased significantly. The top five stores in the light industry sector belong to Hongxing Red Star Macalline Group Corporation Ltd(601828) , Oppein Home Group Inc(603833) , IKEA, Healthcare Co.Ltd(603313) , Xlinmen Furniture Co.Ltd(603008) , with sales of + 356% / 126% / 82% / 78% / 14% year-on-year respectively.
Industry dynamics
Companies such as Healthcare Co.Ltd(603313) , Suofeiya Home Collection Co.Ltd(002572) , Goldenhome Living Co.Ltd(603180) , Hangzhou Coco Healthcare Products Co.Ltd(301009) issued fy2021 performance forecast; Keeson Technology Corporation Limited(603610) the Board Secretary replied on the investor relations platform that the company is a smart bed supplier for the 2022 Beijing Winter Olympic Games and winter Paralympic Games; Four departments jointly clean up and rectify the sale of e-cigarettes to minors.
Risk tips
\u3000\u30001. Repeated impact of the epidemic; 2. Real estate construction continued to decline; 3. Deterioration of industry competition pattern.
Investment suggestion: we are optimistic about the rebound in the valuation of the home sector and the growth opportunities of high-quality leaders, and focus on recommending high-quality leading enterprises with strong performance support and strong long-term growth certainty. Household is optimistic about the opportunity of valuation recovery after the policy risk stabilizes, with emphasis on Oppein Home Group Inc(603833) ; The tobacco sector is optimistic about medium – and long-term growth opportunities, with emphasis on smore International; The household goods sector is optimistic about the marginal improvement opportunities of consumption recovery and cost pressure, with emphasis on Shanghai M&G Stationery Inc(603899) , C&S Paper Co.Ltd(002511) ; The paper packaging sector is optimistic about the opportunity of stabilizing the cost pressure and improving the concentration of the leading enterprises. It is recommended Shandong Sun Paper Co.Ltd(002078) .
