Main points
Papermaking:
The paper sector showed a downward trend this week. Due to the Russian Ukrainian war and other factors, the cost side price continued to rise, the pulp board price increased by 5-6%, and the broad-leaved pulp reached a new high in recent two years, which is expected to remain high in March. In terms of cultural paper, the bidding for autumn teaching materials in China has started one after another, and the demand for cultural paper remains at a high level. It is expected that the cultural paper will still rise in the short term. In terms of national waste, there is still a backlog of inventory in waste factories in major countries, the shipment of downstream manufacturers is not smooth, and the price of national waste still shows a downward trend, which is expected to be low and volatile in a short time. It is suggested to pay attention to: Shanying International Holdings Co.Ltd(600567) , Hangzhou Huawang New Material Technology Co.Ltd(605377) , Shandong Sun Paper Co.Ltd(002078) .
Home:
This week, the overall trend of the home sector decreased slightly. At present, it is in the key stage of 315 activities, and household enterprises make their own efforts Guangdong Piano Customized Furniture Co.Ltd(002853) won the “2022 home industry service model”, bull’s diversified business was carried out smoothly, Healthcare Co.Ltd(603313) strategic cooperation with B & Q and home care played a leading role. In the medium and long term, the core competitiveness of household enterprises will gradually evolve from product power to service power with the evolution of market demand, enterprise development drive and the transformation of industrial upgrading demands. At this level, leading enterprises are progressing smoothly. It is suggested to pay attention to: Gongniu Group Co.Ltd(603195) , Oppein Home Group Inc(603833) , Jason Furniture (Hangzhou) Co.Ltd(603816) .
Packing:
Leading pharmaceutical packaging material enterprise Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) continued to rise after a slight decline this week. The company provides flexible packaging products for Pfizer and Andon Health Co.Ltd(002432) and is negotiating cooperation with boten pharmaceutical. In 2021, the company will complete the fixed increase, and the production capacity will be further released after the raised investment project is put into operation. Recently, the company has sufficient orders, and the company’s industry concentration in China is expected to further improve. Suggested attention: Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) .
Electronic cigarette:
Recently, the State Tobacco Monopoly Administration issued the measures for the administration of e-cigarettes and publicly solicited opinions on the national standard of e-cigarettes (the second draft for comments). The content of the second national standard has been adjusted compared with the version in early December, and it is expected that the e-cigarette industry standard will usher in substantive promotion. The biggest change in management measures is in taste, which will suppress China’s demand in the short term and have a limited impact in the long run. The new supervision and regulations will significantly raise the industry access threshold and have little impact on the overseas business. On the contrary, it will optimize China’s competitive environment. Suggested attention: smore international.
Other light industries:
Shuhua Sports Co.Ltd(605299) the trend of decline was maintained in the early stage of this week until it rebounded slightly on Friday Shuhua Sports Co.Ltd(605299) released the 2030 strategic plan to provide professional and intelligent products and solutions for domestic, commercial and public scenes. The company will respond to the price rise of raw materials by adjusting the sales price of products, locking the price of materials, improving internal management and optimizing process flow, and continue to increase R & D, market investment and new business development, so as to achieve steady growth of business performance. Suggestions: .
Textile and clothing:
In the post epidemic era, we believe that there are allocation opportunities in the upstream textile manufacturing industry. Under the new normal of globalization, the advantages of large-scale layout and supply chain will continue to enable the rapid development of relevant enterprises. It is suggested to pay attention to Shenzhou International and Huali Industrial Group Company Limited(300979) ; For the sportswear sector, on March 9, the Norwegian sovereign fund excluded Li Ning from the portfolio, causing a certain degree of disturbance at the transaction level. We believe that the fundamentals of the company and relevant sectors have not changed substantially, and the domestic sportswear sector is expected to usher in the configuration cost performance. It is suggested to pay attention to Anta sports education and Li Ning.
Market performance this week:
This week, CITIC light industry manufacturing industry index fell by 4.62% compared with last week, and the overall sector underperformed the CSI 300 index by 0.39 percentage points; This week, the CITIC textile and garment industry index fell by 4.78% compared with last week, and the overall sector underperformed the CSI 300 index by 0.56 percentage points. The CSI 300 fell 4.22%, the Shanghai Composite Index fell 4.00%, the Shenzhen Component Index fell 4.40%, and the gem index fell 3.03%. Among the 30 CITIC first-class industries, light industry manufacturing ranked 18th and textile and garment ranked 20th. Among the secondary industries of CITIC light industry manufacturing this week, papermaking fell by 3.94%, packaging and printing fell by 4.44%, household fell by 5.95%, entertainment light industry fell by 3.50% and other light industries fell by 2.74%; Among the secondary industries of textile and clothing this week, textile manufacturing fell by 4.93% and brand clothing fell by 4.65%.
Investment advice
For the paper sector, it’s suggested to focus on the Shanying International Holdings Co.Ltd(600567) mooreinternational, it is suggested to pay attention to Shenzhou International, Huali Industrial Group Company Limited(300979) , Anta sports and Li Ning.
Risk tips
Policy risk, price fluctuation risk of raw materials, sluggish downstream demand risk, and failure of production capacity to meet expectations
