Follow up comments
On December 9, 2021, the Shanghai Composite Index closed at 3673.04 points, up 0.98%; The Shenzhen Component Index closed at 15147.87 points, up 1.23%. The Chongqing composite index, which we focus on, closed at 4079.91 points, up 1.93%; Sichuan composite index closed at 10213.61, up 1.06%. The top three stocks of Listed Companies in Sichuan and Chongqing were: H&R Century Union Corporation(000892) (000892, 10.10%), Sichuan Languang Development Co.Ltd(600466) (600466, 10.06%), Chengdu Hi-Tech Development Co.Ltd(000628) (000628, 10.00%). The 42 companies we focused on rose by an average of 1.52%, of which the top three stocks were: Sichuan Languang Development Co.Ltd(600466) (600466, 10.06%), D&O Home Collection Co.Ltd(002798) (002798, 7.39%), Hitgen Inc(688222) (688222, 5.17%). By industry, the top three sectors in Sichuan and Chongqing are: real estate (+ 3.66%), household appliances (+ 3.54%) and transportation (3.02%).
In December 8th, the 2021 China International Wine Exposition press conference was held in Chengdu. Data released at the meeting showed that in December 8th this year, Sichuan Yibin realized Baijiu production capacity of 556 thousand tons, and realized sales revenue of 136 billion 300 million yuan, an increase of 15.4% over the same period last year. The total profit was 29 billion yuan, a year-on-year increase of 22.7%. Baijiu Baijiu continued to boom, the overall price of liquor as a whole with the upgrading of consumption capacity still has room for improvement, Baijiu industry driving force is still mainly price, after the outbreak of capacity clearance, industry concentration significantly improved, the advantages of enterprises will enjoy the structural bonus brought by the upgrading of consumption. The demand for Baijiu, especially high-end liquor, is still the most stable next year. The overall demand for Baijiu industry is expected to gradually recover. Sichuan and Chongqing region has achieved good economic development, consumer market has been active, Sichuan liquor has a long history and has strong competitiveness. Wuliangye Yibin Co.Ltd(000858) and Luzhou Laojiao Co.Ltd(000568) of high-end liquor have performed well, and the process of Sichuan Swellfun Co.Ltd(600779) has been advancing smoothly. Baijiu consumption in the Spring Festival is expected to be better or further catalytic market. The establishment of the Sichuan liquor brand with strong performance and better growth is concerned. The related targets are: Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) , Sichuan Swellfun Co.Ltd(600779) etc.
Industry highlights
1. Sichuan Provincial Development and Reform Commission Sichuan Provincial Energy Bureau issued the layout plan of Sichuan natural gas vehicle filling station (2021-2025) (hereinafter referred to as the plan). In order to help achieve the goal of “carbon peaking and carbon neutralization”, accelerate the transformation of clean and low-carbon transportation energy, and scientifically layout the “14th five year plan” Vehicle natural gas filling stations will promote the high-quality development of natural gas automobile industry in the province, accelerate the construction of safe, environmentally friendly, moderately advanced, intensive and efficient natural gas automobile filling station network system, and propose that by 2025, Sichuan plans to build 500 new gas stations (including 141 expressway service areas), including 15 CNG gas stations, 401 LNG gas stations, 8 L-CNG gas stations and 76 CNG / LNG joint stations. (China News Network)
Company dynamics
Xinhua Winshare Publishing And Media Co.Ltd(601811) (601811): release the announcement on joint investment and related party transactions with related parties. The company, Sichuan Xinhua Publishing and distribution group and Sichuan Cultural investment group plan to subscribe for Bank Of Chengdu Co.Ltd(601838) publicly issued A-share convertible corporate bonds at the same time, with an investment amount of no more than RMB 177 million.
Chongqing Construction Engineering Group Co.Ltd(600939) (600939): release the announcement on the progress of the collection of compensation received by the wholly-owned subsidiary.
Chongqing Changan Automobile Company Limited(000625) (000625): the voluntary information disclosure announcement on production and sales express in November 2021 was issued. From January to November, the sales volume of Chongqing Changan Automobile Company Limited(000625) was 2122500, with a year-on-year increase of 17.72%; The sales volume of independent brands was 1.6314 million, a year-on-year increase of 19.77%; The sales volume of independent passenger cars was 1.1261 million, a year-on-year increase of 26.69%.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
