Follow up comments
On December 29, 2021, the Shanghai Composite Index closed at 3597.00 points, down 0.91%; The Shenzhen Component Index closed at 14653.82 points, down 1.24%. The Chongqing composite index, which we focus on, closed at 3956.35 points, down 0.83%; Sichuan composite index closed at 9752.34 points, down 2.00%. The top three stocks of Listed Companies in Sichuan and Chongqing were: Sichuan Expressway Company Limited(601107) (601107, 10.10%), Chengdu Wintrue Holding Co.Ltd(002539) (002539, 10.03%), Chongqing Pharscin Pharmaceutical Co.Ltd(002907) (002907, 10.03%). The 42 companies we focused on fell by 0.53% on average, of which the top three stocks were: Sichuan Jinlu Group Co.Ltd(000510) (000510, 3.99%), Sichuan New Energy Power Company Limited(000155) (000155, 3.97%), Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) (002777, 3.74%). By industry, the top three sectors in Sichuan and Chongqing are transportation (+ 4.56%), basic chemical (+ 1.90%) and social services (+ 1.37%).
On December 28, the 10th plenary session of the 13th CPC Chengdu Municipal Committee deliberated and adopted the decision of the CPC Chengdu Municipal Committee on optimizing the spatial industrial transportation energy structure and promoting urban green and low-carbon development under the guidance of achieving the goal of carbon peak and carbon neutralization, which will focus on the all-round optimization and adjustment of the four structures of space, industry, transportation and energy sources to promote urban green and low-carbon development Create new competitive advantages of cities. The decision proposes to make significant progress in structural adjustment in key areas by 2025, achieve remarkable results in the comprehensive green transformation of economic and social development by 2030, and realize the comprehensive green and low-carbon development of super cities by 2035. With the promotion of the construction of a green and low-carbon city in Chengdu, the continuous implementation of green building transformation, green and low-carbon energy supply system, energy conservation and environmental protection industries and other related construction projects will release a lot of demand and help the rapid development of photovoltaic, wind power, new energy vehicles, environmental protection building materials and other industrial chains in Sichuan and Chongqing.
Industry dynamics
From January to November, industrial enterprises above Designated Size in Sichuan achieved a total profit of 382.96 billion yuan, a year-on-year increase of 39.4%, an increase of 50.8% over the same period in 2019, and an average increase of 22.8% over the two years. Among them, the mining industry realized a total profit of 35.71 billion yuan, a year-on-year increase of 44.3%; The manufacturing industry realized a total profit of 310.19 billion yuan, an increase of 43.1%; The production and supply of electricity, heat, gas and water realized a total profit of 37.05 billion yuan, an increase of 11.9%. (China News Network)
Company dynamics
Yibin Tianyuan Group Co.Ltd(002386) (002386): the announcement on the progress of chlorinated titanium dioxide project was issued. The company’s annual output of 50000 tons of chlorinated titanium dioxide expansion project has met the full production conditions after preliminary commissioning and trial production. At present, it has entered normal production and operation.
Chongqing Shunbo Aluminum Co.Ltd(002996) (002996): issue the announcement on the completion of the implementation of the share reduction plan of supervisors.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
