Key investment points:
Market review of this week: SW light industry manufacturing industry lost 300 in Shanghai and Shenzhen this week. From March 7 to March 11, 2022, all shenwanyi industries recorded negative returns; SW light manufacturing industry index fell 4.57%, underperforming the CSI 300 index by about 0.35 percentage points in the same period. All secondary sub sectors of SW light industry manufacturing recorded negative returns, with SW paper, SW entertainment products, SW packaging and printing and SW household products falling by 3.57%, 3.61%, 3.97% and 5.98% respectively. Only about 10% of the stocks in the industry recorded positive returns.
Key industry news: (1) according to the financial report of China Central Television, the global output of rough natural diamonds has continued to decline recently, and the price of natural diamonds has increased significantly. The 1 carat diamond index rose 5.6% in February, up 12.9% from the beginning of the year. At the same time, the cultivation of diamonds is receiving more attention from the market, the recognition has increased rapidly, and the sales volume of branded stores has tripled. (2) E company news: the natural diamond industry stabilized and recovered in 2021, and the overall income of multiple links is close to or has caught up with the market in 2019. Online, various diamond themed jewelry products are in short supply under traditional e-commerce and live delivery. The popularity of diamonds has directly driven the price of raw diamonds to rise sharply. According to the sales data of diamcor mining company in Canada, the average selling price per carat of diamonds has increased by 40% compared with that in September last year based on the rough statistics of the sales of one million US dollars from the beginning of February to the middle of February this year. Industry insiders said that the sales of small and broken diamond products with wearing demand are booming, and the most intuitive phenomenon is the rapid rise in the raw stone price of such products. (3) On March 11, the measures for the administration of electronic cigarettes were officially released and will be officially implemented on May 1. The main contents are: clarify the definition and supervision object of e-cigarette; Implement license management for the production, wholesale and retail entities of e-cigarettes. The license management of e-cigarettes does not set up new types of administrative licenses, and only adds corresponding entries to the license scope of tobacco monopoly production, wholesale and retail licenses; Implement channel management for e-cigarette sales, establish e-cigarette transaction management platform, and standardize e-cigarette sales methods; Carry out the whole process management on the quality of e-cigarette products, and establish the technical review and tracking mechanism of e-cigarette products; The transportation, import and export of electronic cigarettes shall be supervised according to law. In addition, the measures for the administration of electronic cigarettes propose to prohibit the sale of electronic cigarette products to minors. (4) Following the spring price increase offensive launched by many kinds of paper in February, a new round of intensive price increase has been launched for wood pulp paper since March 1, involving cultural paper, white cardboard, household paper and special paper, with an increase of 2001500 yuan / ton. In addition to reproducing the price increase letter of 1500 yuan / ton, Moreover, some manufacturers such as Henan Jianghe paper industry have continuously raised the prices of all their products by 1000 yuan / ton.
Maintain the recommended rating of the industry. Recently, diamond cultivation concept stocks rose collectively. According to the financial report of China Central Television, the global output of rough natural diamonds has continued to decline recently, and the price of natural diamonds has increased significantly. At the same time, the cultivation of diamonds is receiving more attention from the market, the recognition has increased rapidly, and the sales volume of branded stores has tripled. In the context of the current rise in the price of natural diamonds, China’s demand for cultivated diamonds is rapidly released. It is suggested to pay attention to China’s high-quality HTHP production leaders: Henan Liliang Diamond Co.Ltd(301071) ( Henan Liliang Diamond Co.Ltd(301071) ), North Industries Group Red Arrow Co.Ltd(000519) ( North Industries Group Red Arrow Co.Ltd(000519) ), Henan Huanghe Whirlwind Co.Ltd(600172) ( Henan Huanghe Whirlwind Co.Ltd(600172) ), and actively arrange relevant diamond jewelry brands in the downstream.
Risk tips: macroeconomic and market demand fluctuations, intensified market competition, continuous R & D and innovation, continuous repetition of covid-19 epidemic, lower than expected downstream demand expansion and other risks.
