Market review: the two cities maintained a narrow range throughout the day, and the transaction volume fell below trillion yuan
Today, the two cities maintained a narrow range throughout the day. As of the close, the Shanghai index fell 0.06% to 3615.97 and the Shenzhen index rose 0.04% to 14715.65. In terms of sectors, household appliances, building materials and light industry manufacturing led the increase, while the media, food and beverage and computer led the decline. The turnover of the two cities was 974.77 billion yuan, down 13.88% from the previous trading day and 10.25% from the average of the previous five days.
Market focus:
According to the National Bureau of statistics on December 27, in November, the profits of Industrial Enterprises above designated size increased by 9.0% year-on-year, down 15.6 percentage points from the previous month, with an average growth of 12.2% in two years. From January to November, the profits of Industrial Enterprises above designated size increased by 38.0% year-on-year, with an average increase of 18.9% in two years, and the growth rate continued to maintain a high level. Among the 41 major industrial industries, 26 industries had a year-on-year increase in profits, an increase of 3 over the previous month, and the growth area was expanded; The profit situation of 22 industries improved over the previous month, of which the middle and downstream industries accounted for more than 80%.
Strategy suggestion: focus on the required consumption
Today, the Shanghai Stock Index maintained a narrow range throughout the day, and the overall performance of small and medium-sized market capitalization stocks was once again better than the market blue chip. The trading of northbound funds was suspended today, and the market turnover was significantly reduced again, falling below trillion yuan. We believe that the recent market sentiment continues to cool, or the main reason is that the centralized release of long and short information at the end of the previous year has gradually ended, and the market expectation is basically consistent. The profit data of industrial enterprises in November reflected that the profit pattern of upstream and downstream industries was further balanced and the differentiation converged, but the overall momentum weakened and the downward pressure was prominent. Among them, the profit of the mining industry increased by 248.4% year-on-year, which continues to be an important driving factor for the upward profit of industrial enterprises year-on-year, but the increase narrowed. The decline in the price of large raw materials under the regulation of “ensuring supply and stabilizing price” may drive the profit space of upstream enterprises to continue to return to a reasonable level, but the tight energy supply pattern may be difficult to change in the short term. At the same time, the profit growth of consumer goods manufacturing industry has widened, and the profits of clothing and food consumer goods manufacturing industry have improved. Near the Spring Festival, the consumption peak season is boosted by the policy of “expanding domestic demand”. We continue to suggest paying attention to the low reversal opportunity of the required consumption sector and the automobile and household appliance consumption sectors that are expected to benefit under the expectation of loose policy.
In terms of sectors, the pharmaceutical sector performed strongly today. Among them, several stocks in the traditional Chinese medicine sector rose by the limit, and the covid-19 pneumonia concept sector led the increase under the influence of the continuous fermentation of the epidemic situation outside China. We believe that the pharmaceutical sector is expected to usher in a better market in 2022. First, under the “domestic substitution”, pharmaceutical equipment and consumables are expected to usher in a period of development opportunities; Second, the strong demand for downstream replenishment and the frequent positive policies are expected to drive the continuous agitation of the traditional Chinese medicine sector. It is suggested to pay attention to the head targets with strong bargaining power under the logic of “consumption upgrading”; Third, under the “normalization” prevention and control of the epidemic situation, covid-19 vaccine and detection may be more deterministic than specific drugs.
