Macro economy: the intention of policy to maintain stability has become explicit, and the economy and stock market will continue to repair. A-Shares have little rebound because of the previous small decline, while Hong Kong stocks have more room to rebound because of the previous large decline. Treasury yields may remain low and volatile at the current point.
Electronics industry: on December 6, Li Jidian returned to the Taiwan stock exchange for listing. Li Jidian, formerly known as Li Jing technology, a large DRAM factory, was delisted due to the financial crisis in 2012 and transformed into a professional wafer foundry in 2014. At present, the company has two 8-inch and three 12 inch wafer factories, mainly engaged in OEM of storage, logic and discrete devices. The company plans to invest NT $278 billion in Zhuke Causeway Park in the next 10 years to establish a production base with a monthly production capacity of 100000 12 inch wafers. Due to the strong demand for automotive electronics, the company’s current production capacity of about 30000-50000 pieces of Causeway factory has been fully contracted by customers.
Automobile industry: in November, the wholesale / retail sales of automobile market were + 9.2% / + 4.9% month on month, which improved synchronously, and the growth trend of new energy & export continued. The dealer’s inventory coefficient rebounded month on month for two consecutive months, and the dealer accelerated replenishment.
Computer industry: looking ahead to next year, it is recommended to focus on three types of computer targets. One is the target of demand boom in downstream industries, focusing on its boom sustainability and exceeding expectations, such as power it Longshine Technology Group Co.Ltd(300682) and intelligent driving Thunder Software Technology Co.Ltd(300496) . Secondly, it is recommended to focus on the reversal of demand elasticity caused by policies in network security and medical insurance IT industry. DRG / Dip leader China Reform Health Management And Services Group Co.Ltd(000503) , network security leader 360 with poor expectation and other medical insurance it and network security leaders are recommended. The third category is the white horse leader whose valuation has reached the historical bottom, such as Hundsun Technologies Inc(600570) , Mingyuan cloud, Yonyou Network Technology Co.Ltd(600588) .
Real estate industry: at present, the wait-and-see sentiment in the housing market and land market is dominant, and the negative feedback effect is further aggravated by the superposition of the expectation of the real estate tax pilot. Therefore, it is feasible and necessary to resolve the further spread of risks through policy easing. The recent political bureau meeting and the central economic work conference tend to be friendly towards real estate, and the follow-up relevant measures at the implementation level are expected to be effectively followed up within one quarter.
Machinery industry: according to the data of China automotive power battery industry innovation alliance, in November 2021, China Shipbuilding Industry Group Power Co.Ltd(600482) battery output totaled 28.2gwh, with a year-on-year increase of 121.8% and a month on month increase of 12.4%; China Shipbuilding Industry Group Power Co.Ltd(600482) battery loading volume was 20.8gwh, up 96.2% year-on-year and 35.1% month on month. Lithium battery manufacturers continue to expand production, benefiting core lithium battery equipment manufacturers.
Household appliance industry: (1) recently, the two sessions of the bank and the central bank have made a sound superposition, and the margin of real estate policy has eased. In the future, the real estate industry chain is expected to improve marginally, promoting the household appliance sector β End recovery. At present, the valuation of furniture and household appliances has dropped to a low level, and the leaders of subdivided tracks are in the medium and long-term configuration window. (2) On December 8, the State Council Information Office held a regular policy briefing of the State Council. Wu Xiao, director of the rural economy Department of the national development and Reform Commission, said that we should promote the upgrading of rural residents’ consumption echelon, encourage qualified areas to carry out rural household appliance renewal, implement furniture and home decoration subsidies and a new round of automobile to the countryside. It is expected that the implementation of the policy will be conducive to the release of the demand for household appliance renewal and the demand for household appliance replacement > New demand. It is estimated that the replacement demand in rural areas is refrigerator > washing machine > air conditioner; In the new demand for rural household appliances, range hood and stove > air conditioner.
Pharmaceutical industry: the first domestic covid-19 specific drug has been approved by EUA. The antiviral drugs for covid-19 virus under development mainly include neutralizing antibody drugs and small molecule drugs, mainly focusing on three technical routes: inhibiting virus replication, blocking virus entry into cells and regulating human immune system. Clinical trials at home and abroad are progressing in an orderly manner.
Media industry: with the normalization of global epidemic prevention and control, the global mobile game market in 2021 benefited from the cultivation of incremental players and the rise of market segments, and the revenue scale entered a period of steady growth. Since 2021, the number of Chinese offshore game manufacturers has continued to grow, excellent offshore products have been pouring out, and the revenue scale has continued to increase.
Public utilities industry: the improvement of local TOU price policies is conducive to give full play to the role of the market in determining prices, form an effective market-oriented TOU price signal, guide users to cut peak and fill valley, improve power supply and demand, and promote the consumption of new energy. We maintain the “optimistic” investment rating of the industry and recommend Huaneng Lancang River Hydropower Inc(600025) , Sichuan Chuantou Energy Co.Ltd(600674) , China Yangtze Power Co.Ltd(600900) , Huaneng Power International Inc(600011) electric power, Datang new energy and other companies.
Light industry and textile and clothing: (1) special topic of the week: the continuation of the national tide trend and cultural self-confidence bring new opportunities for domestic brands. We believe that the core driving force for the rise of the national tide is the upgrading of the manufacturing industry, and generation Z is an important force for the consumption of the national tide. At present, there are many products in the field of China’s textile and clothing that gain the minds of consumers with the national tide elements. It is recommended to pay attention to Anta sports, Li Ning, etc. (2) The two sessions of the people’s Bank of China and the people’s Bank of China have combined the central bank’s RRR reduction and the marginal easing of the real estate environment, which is expected to promote the recovery of the furniture sector; furniture to the countryside is expected to accelerate the change of the pattern of the furniture industry. It is recommended to Jason Furniture (Hangzhou) Co.Ltd(603816) , Oppein Home Group Inc(603833) , Xlinmen Furniture Co.Ltd(603008) , Easyhome New Retail Group Corporation Limited(000785) , etc.
Building materials industry: from December 8 to 10, the central economic work conference was held, which further emphasized the importance of steady growth. The building materials demand downstream of infrastructure and real estate may be released in 2022. This year, the performance and share price of listed building materials companies have been hit hard under the background of sluggish infrastructure, limited real estate funds and the sharp rise in the price of upstream raw materials. Under the expectation of good policy margin, the valuation and repair market of the building materials industry may be officially opened.
