Core view
This week, Sichuan composite index rose 2.51% and Chongqing composite index rose 0.09%. As of November 26, 2021, the PE of Sichuan plate is 51.53 times, and the overall valuation level has increased; The PE of Chongqing plate is 23.95 times, and the overall valuation level has decreased. By industry, The top three sectors in Sichuan and Chongqing this week were nonferrous metals (+ 7.68%), transportation (+ 7.51%), and mining (+ 6.61%). From the perspective of listed companies, the top three were Casin Real Estate Development Group Co.Ltd(000838) (+ 40.65%), Chengdu Galaxy Magnets Co.Ltd(300127) (+ 34.74%), Sunway Co.Ltd(603333) (+ 27.16%); the top three were Winsan(Chengdu) Medical Science And Technology Company Limited(600767) (- 12.11%), Sichuan Kexin Mechanical And Electrical Equipment Co.Ltd(300092) (- 10.77%) and Sichuan Teway Food Group Co.Ltd(603317) (- 10.03%). The 42 listed companies we focus on in Sichuan and Chongqing increased by 0.44% on average. The top three increases are: Shenghe Resources Holding Co.Ltd(600392) (+ 10.15%), Eoptolink Technology Inc.Ltd(300502) (+ 9.52%), Sichuan Injet Electric Co.Ltd(300820) (+ 8.69%); the top three decreases are: Sichuan Teway Food Group Co.Ltd(603317) (- 10.03%), Qianhe Condiment And Food Co.Ltd(603027) (- 8.89%) and Tongwei Co.Ltd(600438) (- 8.72%).
From January to October, Chongqing’s economy maintained stable operation, and high-tech industries achieved rapid growth. Chongqing Municipal Bureau of statistics released the main economic data of Chongqing from January to October 2021, which showed that the economy of the whole city maintained good growth in October. In terms of consumption, from January to October, the city achieved a total social zero of 1.16 trillion yuan, a year-on-year increase of 22.2% and a year-on-year increase of 11.2% in a single month. In terms of classification, sports and entertainment products increased by 191.3% year-on-year. In terms of industry, from January to October, the added value of industries above Designated Size in the city increased by 13.0% year-on-year, 18.7% compared with the same period in 2019, and an average increase of 8.9% in two years. Among them, the key high-tech industries achieved rapid growth. From January to October, the city’s equipment industry increased by 19.9%, the electronic industry increased by 19.8%, the automobile industry increased by 15.6% and the pharmaceutical industry increased by 14.9%.
The consumer market of Sichuan Province has maintained steady growth, and the penetration rate of Sichuan wine has been continuously improved. Sichuan Provincial Department of Commerce released the provincial “double 11” online retail data. According to the monitoring, from November 1 to 11, the online retail volume in Sichuan reached 56.096 billion yuan, a year-on-year increase of 9.2%, ranking the seventh in China. The popularity of local brands by consumers continued to improve. According to the data, the sales of Sichuan wine, Sichuan tea and Sichuan tune during the double eleventh Festival achieved 6.310, 1.458 and 649 billion yuan, with a year-on-year increase of 17.6%, 10.3% and 15.8% respectively. On the whole, since the beginning of 2021, the economy of Sichuan and Chongqing has recovered rapidly, social consumption is stable and good, and the influence of local food and beverage brands on the consumer market in Sichuan and Chongqing has continued to improve. As a key industry in Sichuan and Chongqing, Sichuan wine has been stable and good in overall production and sales, Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) has performed steadily, Sichuan Swellfun Co.Ltd(600779) , shede and other secondary high-end wines have achieved rapid growth, The industry boom continued.
Investment suggestions: on the whole, the economy of Sichuan and Chongqing is stable and good, the total social zero amount maintains steady growth, and the continuous construction of Chengdu Chongqing twin city economic circle will promote the sustained and healthy economic development of Sichuan and Chongqing. The electronic information industry has become a key area for the future development of Chengdu Chongqing economic circle. The two places plan to build and realize a trillion level industrial scale during the “14th five year plan”. This week, Sichuan Province successively issued the 14th five year plan for the development of many industries involving digital economy and information security. It is expected that relevant industries will usher in new opportunities for development during the 14th five year plan. It is suggested to pay attention to Internet listed enterprises in Sichuan. The overall performance of Sichuan liquor is stable, the high-end performance is stable, the sub high-end dynamic sales are differentiated, the overall rating is stable and the inventory is benign. In addition, the Spring Festival is approaching, and the industry is preparing goods before the festival. It is expected to make a good start and have high certainty. It is expected to catalyze the market in the first quarter, with relevant targets: Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) .
Risk warning: macroeconomic growth is lower than expected, covid-19 epidemic continues to be at risk, and consumption recovery is lower than expected
