Forestry carbon sequestration:
China is expected to become the world’s largest carbon trading market, and forestry carbon sequestration is the “gold” in CCER project. The global carbon market covers 16% of global greenhouse gas emissions, 54% of global GDP and nearly one third of the population. It is estimated that the total quota of the global carbon market will exceed 7.5 billion tons in 2021; In 2019, China’s carbon dioxide emissions accounted for 28.8% of the world, and is expected to become the world’s largest carbon trading market! As a “negative carbon” approach in the process of “carbon neutralization”, forestry carbon sequestration has the characteristics of large carbon sequestration, low cost and high ecological added value. It is the “gold” in CCER project.
The “14th five year plan” and medium and long-term high-quality development outline of the paper industry put forward the accumulation of carbon sink and biomass resources. On December 10, the central economic work conference stressed that “it is necessary to conduct scientific assessment, exclude the new renewable energy and raw material energy from the total energy consumption control, create conditions to realize the transformation from” double control “of energy consumption to” double control “of total carbon emission and intensity as soon as possible, accelerate the formation of an incentive and restraint mechanism for reducing pollution and carbon, and prevent simple layer by layer decomposition”; On December 17, Beijing Green Exchange resumed collecting all fees related to CCER trading; On December 24, the “14th five year plan” and medium and long-term high-quality development outline of the paper industry put forward five development goals, including accumulating carbon sink and biomass resources. It is recommended to pay attention to [ Yueyang Forest & Paper Co.Ltd(600963) ].
Domestic household sector:
Under the background of no speculation in real estate, we should also implement policies according to the city to promote a virtuous circle in the real estate industry. On December 10, The central economic work conference stressed “We should adhere to the positioning that houses are used for living rather than speculation, strengthen expectation guidance, explore new development models, adhere to the simultaneous development of rental and purchase, accelerate the development of long-term rental housing market, promote the construction of indemnificatory housing, support the commercial housing market to better meet the reasonable housing needs of buyers, and promote the virtuous cycle and healthy development of the real estate industry due to urban policies”; In addition, the recent real estate policy was repaired. On December 3, the central bank and other three ministries and commissions collectively responded to the risk problems of real estate enterprises. The short-term impact of Evergrande incident may be further improved. On December 8, the State Council Information Office held a regular policy briefing of the State Council to introduce the relevant situation of the 14th five year plan to promote agricultural and rural modernization.
The software head company maintained high growth, which far exceeded the overall level of the industry. In the first three quarters, Jason Furniture (Hangzhou) Co.Ltd(603816) and Xlinmen Furniture Co.Ltd(603008) achieved revenue of RMB 13.225/5.043 billion respectively, with a year-on-year increase of + 54.8% / + 46.1% respectively, and the net profit attributable to the parent company was RMB 1.238/374 billion, with a year-on-year increase of + 22.6% / + 107.5% respectively; Fy22h1 Minhua holdings realized a main business income of HK $10.214 billion, a year-on-year increase of + 53.9%, and a net profit attributable to the parent company of HK $988 million, a year-on-year increase of + 31.9%. The rise in the price of raw materials has a certain impact on the short-term profit margin. Considering that household products are durable consumer goods, consumers are more sensitive to their prices, consumer goods are low, and leading enterprises have the ability to transmit the pressure of rising costs to the terminal. It is expected that with the gradual implementation of the price increase of household enterprises, the impact of rising costs on performance will gradually weaken.
Continue to be optimistic about the software home track dominated by “domestic demand + 2C”. In terms of channel power, software home has a natural barrier of “online can not replace offline” and “bulk can not replace retail”. The leading enterprises gradually occupy the core position in Ka stores, open series stores in the same store in a multi category mode, grasp the offline traffic entrance, and local and small and medium-sized brands may gradually lose the transaction scene, so as to withdraw from the core market competition; In terms of product power, in the past few years, Chinese software enterprises have significantly improved their product power by means of acquiring overseas brands and cooperating with overseas designers. Superimposed on the consumption trend of “the rise of national tide”, consumers’ acceptance of domestic home brands has increased; Software has little impact. Software home consumption belongs to personalized consumption, and hardbound houses are not matched. Therefore, the proportion of bulk business income is very low. The fluctuation of individual real estate enterprises has little impact on the company’s accounting period and short-term performance. In combination with the valuation and cost performance, we continue to be optimistic about the software leaders [ Xlinmen Furniture Co.Ltd(603008) ], [ Jason Furniture (Hangzhou) Co.Ltd(603816) ] and [Minhua holdings] dominated by “domestic demand + 2C”; [ Oppein Home Group Inc(603833) ] and [ Zbom Home Collection Co.Ltd(603801) ] with good business structure and strong management ability are preferred for the customization section.
New tobacco sector:
Recently, e-cigarette policies have been intensively issued, and policy norms have promoted the orderly development of the industry. On November 30, 2021, the state tobacco administration issued a notice on Soliciting Opinions on the national standard for electronic cigarette (Exposure Draft), which is to be officially implemented 3-5 months after its issuance. On December 2, The State Tobacco Monopoly Administration publicly solicited opinions on the measures for the administration of e-cigarettes (Draft for comments). We believe that: (1) from the perspective of supervision, the overall supervision of e-cigarettes is basically consistent with that of cigarettes. All links need permission and approval, and unified centralized purchase platform sales is adopted; (2) The existing competition pattern of e-cigarettes will be broken, and e-cigarettes will enter the monopoly era. The product side will look at the coincidence rules and quality, which is good for manufacturers with high production standards, high-tech reserves and high capital reserves; the national, provincial and municipal representatives of e-cigarettes at the channel side will face a reshuffle, and wholesale enterprises need to apply for wholesale licenses. It is suggested to pay attention to [ Anhui Genuine New Materials Co.Ltd(603429) ], [smaller international], [ Shenzhen Jinjia Group Co.Ltd(002191) ] 。
Aluminum plastic film:
As a whole, the aluminum-plastic film industry is in short supply. At present, the core driving force of the demand for aluminum-plastic film is the rapid growth of soft pack battery shipments, and the future increment may come from two-wheel electric vehicles, energy storage batteries, solid-state batteries and other fields. According to evtank and Guangdong Lyric Robot Automation Co.Ltd(688499) prospectus data, the proportion of global soft pack battery shipments increased from 23.93% in 2012 to 55.83% in 2020, and the shipments in 2020 were 107.7gwh, yoy + 28.1%; In terms of competition pattern, the global aluminum-plastic film is mainly monopolized by Japanese enterprises, Among them, Greater Japan printing (DNP) occupies 50% of the global market share and Showa electric occupies 20% of the market share. At present, China’s aluminum-plastic film technology has made progress, product performance and reliability have been improved, and the supply system has been gradually improved, forming a virtuous cycle feedback from upstream and downstream, which is on the eve of domestic substitution. Recommended [ Shanghai Zijiang Enterprise Group Co.Ltd(600210) ] , the core logic is domestic substitution. The essential reason is technological progress and the gradual improvement of upstream and downstream supply system. The unit price of aluminum-plastic film of 21q3 company is 16.8 yuan / m2, the average price of 21h1 is 16.0 yuan / m2, and the average price of 20 years is 15.5 yuan / m2. The unit price continues to increase month on month, and the industry competition pattern is good.
Paper sector:
At present, the prices of most kinds of paper are low, among which the prices of cultural paper and white cardboard are at the bottom. We believe that there may be a tight balance between supply and demand in the paper industry. The “double control” policy helps to limit production and ensure prices, enhance the willingness of downstream replenishment, and improve the supply and demand of the industry. (1) Short term: pay attention to the follow-up demand (core factors), the strength and sustainability of power restriction policy, and the progress of new production capacity; (2) in the medium and long term, the “double control” policy helps to speed up the clearing of production capacity of small and medium-sized enterprises, make it easier for large factories to pass the approval of new projects, and further improve the industry concentration. It is recommended to pay attention to enterprises with a high proportion of self owned power [ Shandong Sun Paper Co.Ltd(002078) ], [ Shanying International Holdings Co.Ltd(600567) ], [ Shandong Bohui Paper Industry Co.Ltd(600966) ][ Shandong Chenming Paper Holdings Limited(000488) ][ Yueyang Forest & Paper Co.Ltd(600963) ]。
Personal protection & household paper plate:
Domestic brands are emerging, and the importance of life paper online channels is prominent. In terms of adult incontinence, the aging of the population & the increase of penetration rate drives the rapid growth of adult incontinence industry, and the upgrading of consumption promotes the shift of price oriented consumer concept to the brand stage. It is suggested to pay attention to the [ Hangzhou Coco Healthcare Products Co.Ltd(301009) ] with the first market share of independent brands in China; In terms of sanitary napkins, Anxin pants, liquid sanitary napkins and other innovative products may lead the development of the industry. It is suggested to pay attention to the leading market share in the “free point” region, and lay out online to build a national brand [ Chongqing Baiya Sanitary Products Co.Ltd(003006) ]; In terms of household paper, the product attributes are in line with the e-commerce model, and the importance of online channels is prominent. Among them, the online sales of Vader account for 38% in 2021h1, which promotes the growth of the company’s performance. It is recommended to pay attention to [Vader international].
Risk warning: real estate sales and completion are not as expected; Upward risk of raw material price; Industry competition intensifies; Sino US trade friction risk, etc.
