Key investment points:
Market review this week: SW light industry manufacturing industry outperformed Shanghai and Shenzhen 300 this week. From February 28 to March 4, 2022, 41.94% of shenwanyi industry recorded positive earnings; SW light manufacturing industry index rose 0.10%, outperforming the CSI 300 index by about 1.78 percentage points in the same period. Only the SW paper sector recorded positive earnings, with a weekly increase of 3.91%; The remaining 75% of the secondary sub sectors of SW light manufacturing recorded negative earnings, while SW household products, SW entertainment products and SW packaging and printing fell by – 0.53%, – 1.21% and – 1.78% respectively. More than 50% of the stocks in the industry recorded positive returns.
Key news of the industry: (1) recently, the two leaders of customized home Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) successively released the “whole home customization” strategy and landing policy, further enriching the categories of customized products and realizing a more convenient decoration consumption experience. (2) From March 1, a new round of intensive price increase was launched for pulp paper. Some analysts believe that considering that the short-term rise power of pulp is sufficient and the industry inventory returns to the historical median, it is expected that the current round of price rise of pulp paper can also be successfully implemented. In the secondary market, the paper sector rose by more than 2% and gained 1.64 billion yuan of additional positions, of which Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) recorded a rise in the limit and gained 1.292 billion yuan of additional positions, and Shandong Sun Paper Co.Ltd(002078) , Shandong Bohui Paper Industry Co.Ltd(600966) , Yueyang Forest & Paper Co.Ltd(600963) and other net inflows ranked first. (3) According to the data of China business intelligence network, in recent years, the overall operating revenue of China’s paper and paper products industry has shown a trend of first decline and then growth. In 2021, due to the improvement of the prosperity of the paper industry, the operating revenue of China’s paper and paper products industry totaled 150.6 billion yuan, an increase of 192.7 billion yuan over the previous year, a year-on-year increase of 14.7%. In terms of total profits, in recent years, the profits of Chinese paper enterprises have shown a steady growth trend. In 2021, the total profit of China’s paper and paper products industry increased to 88.48 billion yuan, with a year-on-year increase of 6.9%. It is expected that the total profit of China’s paper and paper products industry will continue to grow in the future. (4) At the two sessions of the National People’s Congress this year, Xu Guanju, deputy to the National People’s Congress and chairman of ChuanHua group, plans to submit suggestions on innovating the recycling mode of packaging barrels in the printing and dyeing auxiliary industry to help the low-carbon development of the industry.
Maintain the recommended rating of the industry. This week, the SW light industry manufacturing industry outperformed the CSI 300 index. In terms of secondary sub industries, only SW paper sector recorded positive earnings, with a weekly increase of 3.91%; The weekly increase of SW household goods sector followed closely. More than 50% of the stocks in the industry recorded positive returns. Recently, the customized home head company Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) successively released the “whole home customization” strategy and landing policy to further enrich the categories of customized products. We are optimistic about the growth of high-quality leading enterprises in the household sector. We suggest paying attention to high-quality leading enterprises with good performance and strong long-term growth certainty in the industry, such as 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) ), 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.
