Key investment points:
Market review this week: SW light industry manufacturing industry outperformed Shanghai and Shenzhen 300 this week. From February 21 to February 25, 2022, 38.71% of shenwanyi industry recorded positive earnings; SW light industry manufacturing industry index fell 0.63%, but outperformed the Shanghai and Shenzhen 300 index by about 1.04 percentage points in the same period. Only the SW paper sector recorded positive earnings, with a weekly increase of 2.56%; The remaining 75% of the secondary sub sectors of SW light manufacturing recorded negative earnings, while SW packaging and printing, SW household products and SW entertainment products fell by 0.66%, 1.86% and – 2.72% respectively. Only 30% of the stocks in the industry recorded positive earnings.
Key industry news: (1) the price rise of paper enterprises in March is accelerating. Recently, APP golden light paper, Shandong Sun Paper Co.Ltd(002078) , Jianghe paper and other paper enterprises announced that they would increase the price by 300 yuan / ton from March 1. Meanwhile, the increase of 300 yuan / ton of Shandong Chenming Paper Holdings Limited(000488) , Yueyang Forest & Paper Co.Ltd(600963) , MCC paper galaxy has been implemented in the near future. (2) According to the comprehensive reports of foreign media, the paper market in Ukraine is facing a disastrous situation. Due to tense national relations, Ukraine has reduced the import of paper from Russia and considered importing from the EU, China and South Africa. However, due to the high price and logistics cost of paper, the implementation of these plans may face serious difficulties. (3) Recently, under the supervision of Jiaxing customs, 7 batches of 411784 tons of unqualified recycled pulp imported by an enterprise were returned out of the country. Since this year, Jiaxing customs has returned 602747 tons of solid waste. (4) 2022 China household consumption trend research and industry typical sample enterprise results released in Beijing. The data show that the key words of China’s current household consumption trend are domestic goods, intelligence and whole house decoration; The key words of consumer groups are generation Z, her economy and town youth; The key words of consumption behavior are planting grass and digitization.
Maintain the recommended rating of the industry. From March 4 to March 5, 2022, the national two sessions will be held soon. In recent years, “green development and intelligent transformation” have frequently appeared in the documents of the two sessions. We expect that in 2022, the two sessions will continue to focus on promoting green development and promoting the development of digital and intelligent industries. Among them, green development is the core theme of the development of today’s paper industry. The adjustment of raw material structure, the reform of energy structure and technological development will accelerate the upgrading and adjustment of China’s paper industry. It is suggested to pay attention to China’s leading wood pulp paper enterprises: Shandong Sun Paper Co.Ltd(002078) ( Shandong Sun Paper Co.Ltd(002078) ), Shandong Bohui Paper Industry Co.Ltd(600966) ( Shandong Bohui Paper Industry Co.Ltd(600966) ), Shandong Chenming Paper Holdings Limited(000488) ( Shandong Chenming Paper Holdings Limited(000488) ), and leading waste paper companies: Shanying International Holdings Co.Ltd(600567) ( Shanying International Holdings Co.Ltd(600567) ), etc. In addition, smart home is one of the application demonstration projects in the nine key areas of the Internet of things. In recent years, the Chinese government has continued to promulgate support, planning or normative policies related to smart home devices. Under the influence of 5g, the Internet of things and the rapid development of Internet home decoration market, China’s smart home market shows a vigorous development trend. Chinese home leaders such as Suofeiya Home Collection Co.Ltd(002572) , Jason Furniture (Hangzhou) Co.Ltd(603816) and others have successively said that they will speed up the layout of smart home business. It is suggested to pay attention to high-quality companies in China’s home furnishing sector: Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) ), Suofeiya Home Collection Co.Ltd(002572) ( Suofeiya Home Collection Co.Ltd(002572) ), Jason Furniture (Hangzhou) Co.Ltd(603816) ( Jason Furniture (Hangzhou) Co.Ltd(603816) ), Qumei Home Furnishings Group Co.Ltd(603818) ( Qumei Home Furnishings Group Co.Ltd(603818) ), etc.
Risk tips: macroeconomic policy risk, intensified market competition, price fluctuation of raw materials, lower than expected prosperity of real estate, Sino US trade friction, intensified exchange rate fluctuation, continuous and repeated covid-19 epidemic and other risks.
