Key investment points:
Market review last week
Last week, the light industry manufacturing industry underperformed CSI 300 by 0.35pct: SW light industry manufacturing (- 4.57%) vs CSI 300 (- 4.22%); The top five weekly gains of individual stocks were: packaging and printing – Sichuan Jinshi Technology Co.Ltd(002951) (11.00%), Beijing Shengtong Printing Co.Ltd(002599) (7.52%), Guangdong New Grand Long Packing Co.Ltd(002836) (6.32%), Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) (4.96%) and Suzhou Hycan Holdings Co.Ltd(002787) (4.89%); Household goods – Zhejiang Cayi Vacuum Container Co.Ltd(301004) (4.94%), Anhui Deli Household Glass Co.Ltd(002571) (0.00%), Vohringer Home Technology Co.Ltd(603226) (0.00%), Nanjing Olo Home Furnishing Co.Ltd(603326) (- 0.11%) and Profit Cultural & Creative Group Co.Ltd(300640) (- 2.28%); Papermaking – Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) (3.31%), Yibinpaperindustryco.Ltd(600793) (1.80%), Zhejiang Jingxing Paper Joint Stock Co.Ltd(002067) (0.50%), Shandong Bohui Paper Industry Co.Ltd(600966) (0.20%) and Shandong Chenming Paper Holdings Limited(000488) (- 0.56%); Entertainment supplies – Chuangyuan culture (3.30%), Shifeng Cultural Development Co.Ltd(002862) (0.78%), mubang high tech (0.26%), St Qunxing (0.23%) and Impulse (Qingdao) Healthtechco.Ltd(002899) (- 0.28%).
This week’s view
The state tobacco administration issued the national standard for electronic cigarettes (second draft for comments) and the measures for the administration of electronic cigarettes.
1) national standard of electronic cigarette: no seasoning taste; Administrative measures: it is prohibited to sell flavored e-cigarettes.
Intuitively, it may lead to the loss of such customers and have a negative impact on the sales of e-cigarettes. However, the essence of e-cigarette is a substitute product, and its core role is to promote smokers to quit smoking. Secondly, under the provisions of the national standard of electronic cigarette, there is still a certain space for mixing and blending at the taste level. Third, referring to the development of the industry after the United States banned the sale of flavored e-cigarettes in 2020, the final sales will still recover after the “labor pains” of the industry.
Finally, the nicotine content of tobacco flavored e-cigarettes is usually higher than that of flavored e-cigarettes, which may stimulate the market demand for nicotine components.
2) the administrative measures stipulates that monopoly license is required for production and sales. The implementation and operation of the license system will raise the entry threshold of the e-cigarette industry and promote a clearer division of functions in all links. At the same time, it will force small and medium-sized e-cigarette brands to upgrade or be cleared.
3) the export regulations of the administrative measures have been relaxed, which is conducive to Chinese brands going to sea. In terms of domestic sales, non exclusive operation will promote the rectification and integration of existing e-cigarette stores, and the traditional cigarette sales scene may become one of the future sales modes of e-cigarette.
Recommended combinations: Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) ), Jason Furniture (Hangzhou) Co.Ltd(603816) ( Jason Furniture (Hangzhou) Co.Ltd(603816) ), Shenzhen Jinjia Group Co.Ltd(002191) ( Shenzhen Jinjia Group Co.Ltd(002191) ), Shanghai M&G Stationery Inc(603899) ( Shanghai M&G Stationery Inc(603899) ).
This week’s event reminder
Shanghai Ailu Package Co.Ltd(301062) : lifting the ban Jiamei Food Packaging (Chuzhou) Co.Ltd(002969) : convening of the general meeting of shareholders
Zhang Xiaoquan Inc(301055) : expected disclosure date of annual report Sichuan Jinshi Technology Co.Ltd(002951) : lifting the ban
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
