Follow up comments
On March 14, 2022, the Shanghai Composite Index closed at 322353 points, down 2.60%; The Shenzhen Component Index closed at 1206363 points, down 3.08%. The Chongqing composite index, which we focus on, closed at 350632 points, down 1.99%; Sichuan composite index closed at 830745 points, down 3.27%. The top three stocks of Listed Companies in Sichuan and Chongqing are: Sichuan Chengfei Integration Technology Corp.Ltd(002190) ( Sichuan Chengfei Integration Technology Corp.Ltd(002190) , 10.02%), North Chemical Industries Co.Ltd(002246) ( North Chemical Industries Co.Ltd(002246) , 10.00%), Pku Healthcare Corp.Ltd(000788) ( Pku Healthcare Corp.Ltd(000788) , 9.98%). The 42 companies we focused on fell by an average of 2.65%, among which the top three stocks were: Chengdu Jafaantai Education Technology Co.Ltd(300559) ( Chengdu Jafaantai Education Technology Co.Ltd(300559) , 1.88%), Chengdu Hongqi Chain Co.Ltd(002697) ( Chengdu Hongqi Chain Co.Ltd(002697) , 1.47%), Chongqing Fuling Zhacai Group Co.Ltd(002507) ( Chongqing Fuling Zhacai Group Co.Ltd(002507) , 1.17%). By industry, the top three sectors in Sichuan and Chongqing were defense industry (0.58%), media (- 0.87%), medicine and Biology (- 1.06%).
Chongqing and Sichuan jointly issued the implementation plan of jointly building the port logistics system of Chengdu Chongqing dual city economic circle, and proposed to strive to reach 14 trillion yuan of social logistics in Sichuan and Chongqing by 2025, reduce the ratio of total social logistics cost to regional GDP by about 1 percentage point compared with 2020, and reach 20 5A logistics enterprises, Create two or more national logistics hub economic demonstration zones. At the same time, it proposed to build a new western land and sea channel at a high level, a high-quality joint operation of the brand of China Europe Express (Chengdu Chongqing), a high-quality joint construction of the shipping center in the upper reaches of the Yangtze River, and a regional international aviation network from a high starting point, and defined a list of 20 key issues. The smooth flow of new water, land and air channels is conducive to further improve the logistics system in Sichuan and Chongqing and strengthen the radiation scope of Chengdu Chongqing economic circle. On the one hand, it helps the scale growth of transportation industry in Sichuan and Chongqing, on the other hand, it is also conducive to reducing costs, promoting business expansion and bringing new development opportunities to enterprises.
Industry dynamics
The general office of Chongqing municipal government issued several measures for accelerating the development of biomedical industry in Chongqing and issued 23 policies to promote the development of biomedical industry. The policies cover seven aspects: accelerating the agglomeration of innovative resources, improving clinical transformation capacity, strengthening the research and development of innovative products and promoting the modernization of industrial chain. It is planned that by the end of the 14th five year plan, the city will cultivate three enterprises with an output value of 10 billion yuan, five enterprises with an output value of 5 billion yuan, add 10 listed enterprises, and strive to exceed 200 billion yuan in the output value of the city’s biomedical industry.
Company dynamics
Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) ( Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) ): the annual report of 2021 was issued. In 2021, the company achieved an operating revenue of 1.306 billion yuan, a year-on-year increase of 13.21%, and a net profit attributable to shareholders of listed companies of 219 million yuan, a year-on-year increase of 20.07%. （wind）
D&O Home Collection Co.Ltd(002798) ( D&O Home Collection Co.Ltd(002798) ): the announcement on obtaining invention patent certificate was issued. The company’s holding subsidiaries and subsidiaries recently obtained 3 invention patent certificates issued by the State Intellectual Property Office. （wind）
Risk warning: the economic recovery is lower than expected and the risk of covid-19 outbreak.
