Macro economy: the market gradually tends to be rational after the transaction is expected to maintain stability, focusing more on the progress of the actual implementation of policies. It may be a matter of time before the policy becomes effective. We are still optimistic about the stock market, especially Hong Kong stocks. Treasury yields may remain low and volatile at the current point.
Computer: Weilai and Huawei have released new cars one after another this week, and the intelligent trend of the two new cars continues. Looking forward to the next 22 years, under the background of supply side chip mitigation and demand side vehicle manufacturers continuously increasing investment in automation and intelligence, the target of intelligent driving track with intelligent cockpit and automatic driving as the core will continue to benefit. It is recommended to focus on Thunder Software Technology Co.Ltd(300496) , Huizhou Desay Sv Automotive Co.Ltd(002920) , Autel Intelligent Technology Corp.Ltd(688208) , Foryou Corporation(002906) , Navinfo Co.Ltd(002405) , Vanjee Technology Co.Ltd(300552) , Streamax Technology Co.Ltd(002970) , etc.
Automobile: this week, Huawei held the “intelligent automobile solution ecological forum” and released the new AITO (asked) M5, which boosted the solution companies in the field of intelligent cockpit in the sector (such as Huizhou Desay Sv Automotive Co.Ltd(002920) , Suzhou Sonavox Electronics Co.Ltd(688533) , Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) ). In the first three weeks of December, the retail sales of passenger cars were – 10% / + 23% month on month, respectively. Continue to pay attention to the year-on-year recovery of retail sales after the recovery of inventory depth.
Light industry, textile and clothing: seek “progress” in “change”, and take the lead in subdividing the faucet. Furniture: focus on domestic market channel reform opportunities. Among them, it is recommended to pay attention to Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , Zbom Home Collection Co.Ltd(603801) , Goldenhome Living Co.Ltd(603180) for customized furniture; It is recommended to pay attention to Jason Furniture (Hangzhou) Co.Ltd(603816) , Qumei Home Furnishings Group Co.Ltd(603818) in the finished furniture sector. Papermaking, packaging and printing: subdivide and optimize the track pattern, and the strong will always be strong. It is recommended to pay attention to Shandong Sun Paper Co.Ltd(002078) , Shanying International Holdings Co.Ltd(600567) , Xianhe Co.Ltd(603733) , Quzhou Wuzhou Special Paper Co.Ltd(605007) , Chongqing Baiya Sanitary Products Co.Ltd(003006) , Hangzhou Haoyue Personal Care Co.Ltd(605009) . Entertainment and jewelry sector: consumption upgrading continues and prosperity rises. It is recommended to pay attention to Shanghai M&G Stationery Inc(603899) and Chow Tai Seng Jewellery Company Limited(002867) . Retail of home building materials: professional home building materials stores are still dominant, and digital and high-frequency consumption empowerment have become the mainstream. It is recommended to pay attention to Easyhome New Retail Group Corporation Limited(000785) , Red Star Macalline Group Corporation Ltd(601828) leading in digital transformation. Textile and clothing: the national trend continues, and there are good opportunities for sports shoes and children’s wear. It is suggested to pay attention to Anta sports, Huali Industrial Group Company Limited(300979) , Zhejiang Semir Garment Co.Ltd(002563) , Winner Medical Co.Ltd(300888) , and Bosideng.
Machinery and military industry: the industrial Siasun Robot&Automation Co.Ltd(300024) output in November was 31900 sets, a year-on-year increase of + 35.03%; The output from January to November was 330000 sets, a year-on-year increase of + 59.6%. With the increase of downstream demand and the recovery of industrial growth rate of Siasun Robot&Automation Co.Ltd(300024) , it is recommended to pay attention to the leading Leader Harmonious Drive Systems Co.Ltd(688017) of harmonic reducer.
Media: so far, at least 13 films have been scheduled to be released in Chinese cinemas during the Spring Festival in 2022. As there is no clear signal of improvement at the supply side for the time being, coupled with the industry trend of schedule dependence, the Spring Festival archives gathering head films will be the primary factor determining the popularity of the film market in the first half of 2022.
Public utilities: the rise of electricity and electricity price is conducive to the profit growth of power generation enterprises, and thermal power enterprises are expected to realize profit reversal; At the same time, green power transactions are expected to be normalized in the future, which is good for green power operators. We maintain the “optimistic” investment rating of the industry and recommend Huaneng Lancang River Hydropower Inc(600025) , Sichuan Chuantou Energy Co.Ltd(600674) , China Yangtze Power Co.Ltd(600900) , Huaneng Power International Inc(600011) electric power, Datang new energy and other companies.
Electronics: folding screen mobile phones appear frequently, paying attention to the consumer electronics sector. The release of Huawei P50 folding screen mobile phone is expected to drive the continuation of the consumer electronics market. This week Huawei released the p50pocket, a folding mobile phone. At present, many manufacturers, including oppo, vivo and Xiaomi, have entered the folding screen mobile phone market. Apple has also laid out a number of folding screen patents in recent years. Once Apple enters the market, it will officially launch the consumer electronics investment opportunities brought by the folding screen.
Household appliances: our overall investment strategy for the household appliance industry in 2022 is: clear the clouds and see the end of the day. Sometimes, the willow is dark and the flowers are bright and the spring is coming. In 2021, the trend of the home appliance sector was weak. In the first half of the year, it was mainly affected by the price rise of raw materials, shipping and exchange. Although the cost of raw materials and shipping was alleviated in the second half of the year, the deterioration of real estate front-end sales data continued to suppress the valuation of the sector. It is expected that the annual house delivery data in 2022 is expected to maintain double-digit growth, driving the demand for furniture and household appliances. The release of population structure and product renewal demand supports the strong medium and long-term demand of the industry; The short-term rise in raw material prices accelerates the industry reshuffle, superimposes new opportunities brought by product innovation and channel reform, the industry concentration is expected to continue to rise, and the advantages of leading enterprises are expected to expand.
Medicine: Recently, with policy support and price increase catalysis, traditional Chinese medicine enterprises with low valuation and strong brand influence in the past have attracted attention. Brand Chinese patent medicine has both drug and consumption attributes, has certain price raising ability, and is optimistic about Yunnan Baiyao Group Co.Ltd(000538) (000538), Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436), Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) (600329), Guangyuyuan Chinese Herbal Medicine Co.Ltd(600771) (600771) for a long time.
Real estate: at present, the wait-and-see sentiment in the housing market and land market is dominant, and the superposition of real estate tax pilot expectations further aggravates the negative feedback effect. Therefore, it is feasible and necessary to resolve the further spread of risks through policy easing. The recent political bureau meeting and the central economic work conference tend to be friendly towards real estate, and the follow-up relevant measures at the implementation level are expected to be effectively followed up within one quarter.
Building materials: the cement price this week is 548 yuan / ton, down 3.7 yuan / ton year-on-year, but the decline has narrowed. Considering that the current “cement coal” price difference has been the same as that of last year, we expect the cement price to stop falling soon. Considering the high year-on-year increase of cement price in the fourth quarter, even considering the loss of sales volume, the performance of cement enterprises in the fourth quarter still increased well year-on-year. It is recommended that the performance targets are China building materials, Huaxin Cement Co.Ltd(600801) , Gansu Shangfeng Cement Co.Ltd(000672) and Tangshan Jidong Cement Co.Ltd(000401) .
Nonferrous Metals: this week, the price of battery grade lithium carbonate exceeded 250000 / ton. Recently, there are frequent plans to expand the production of battery cathode, the problem of supply shortage is difficult to solve in the short term, and the profits of upstream mines are expected to continue to rise. This week, Chinese copper enterprises and Freeport finalized that the long single processing fee of copper concentrate in 2022 will be 65 US dollars / ton and 6.5 US cents / pound, an increase of 5.5 US dollars / ton and 5.5 US cents / pound compared with 2021. The copper supply may be relatively loose next year, and the profits of copper smelting enterprises are expected to rise steadily next year.
