Chemical industry
In this period, CITIC basic chemical industry index fell 3.34%, outperforming Shanghai stock index by 0.66 percentage points and Shanghai Shenzhen 300 index by 0.89 percentage points, ranking seventh among 30 CITIC primary industries. Among CITIC’s tertiary sub industries, 2 rose and 31 fell, with phosphate fertilizer and phosphate chemical, polyester and electronic chemicals leading the performance. It is suggested to pay attention to: oil and gas exploitation, coal chemical industry and chemical fertilizer.
Risk tip: the price of raw materials fluctuates sharply, the price of products drops sharply, and the strength of environmental protection policies is lower than expected.
Food and beverage
This period, the food and beverage sector rose 2.18%, mainly from the Baijiu and dairy sectors, while the rest of the sector fell below. The fundamentals of Baijiu and dairy companies are relatively good. The listed companies have released their annual performance in 2021 and the 1 to February results in 2022. Their sales and performance have shown high growth and the market is also excited. For the future, we are optimistic that there are more opportunities in the food and beverage sector as a whole, and the valuation of core assets has mostly fallen back to a reasonable level. Risk warning: rising manufacturing costs; Residents’ consumption is weak.
Medicine
Market review: in this period, the pharmaceutical industry as a whole fell by 2.07%, while the Shanghai and Shenzhen 300 fell by 4.22% in the same period, which was stronger than the market as a whole. Investment suggestion: it is suggested to pay attention to covid-19 API suppliers and cro enterprises.
Risk tip: the epidemic development exceeded expectations.
Electronic
The current electronics (Shenwan) index fell 4.27%, underperforming the Shanghai and Shenzhen 300 index (- 4.22%) in the same period, ranking 13th among 31 Shenwan level industries. At present, under the background of rapid rotation of industry hotspots in the secondary market, the performance of sub sectors in the electronics industry is also relatively differentiated. There are many theme hotspots in the industry, such as “folding screen”, “Automotive intelligence”, “continuous penetration of VR” and “domestic substitution of Semiconductors”. At the same time, the external environment, such as US science and technology sanctions, potential conflicts between Russia and Ukraine The risk factors such as the Fed’s expectation of raising interest rates are also. The tightening expectation of this risk preference will have a negative impact on the technology industry in particular. From a long-term perspective, under the background of the global epidemic, the demand in 5g + alot, new energy vehicles, smart home, telecommuting, PC and other fields has been directly or indirectly boosted, as well as the urgent demand for domestic substitution. The electronic sector has long-term growth momentum. It is suggested to pay attention to the fields of semiconductor equipment, semiconductor materials, automotive electronics and passive components (MLCC, PCB).
Risk tips: 1) the progress of domestic production is lower than expected; 2) The cost of upstream raw materials remains high; 3) The development of advanced technology of Chinese manufacturers may not be as expected; 4) Systemic risk.
Agriculture, forestry, animal husbandry and fishery
In the current period, the agriculture, forestry, animal husbandry and fishery (CITIC) industry fell by 3.90%; The CSI 300 index fell 4.22%, and the agriculture, forestry, animal husbandry and fishery industry outperformed the benchmark index by 0.32 percentage points. From the perspective of the fine molecular industry of agriculture, forestry, animal husbandry and fishery, the aquaculture sector increased the most this week, closing up 2.91%; Pet food fell the most, down 9.42%. Suggestions: focus on the pet food sector in the high growth track and the seed industry sector with policy expectations.
Risk warning: the risk of sharp fluctuations in livestock and poultry prices and raw material prices; Risk that the progress of relevant policies of seed industry is less than expected; The aggravation and deterioration of African swine fever has led to the risk that the slaughter volume of pigs is less than expected.
