Market review of this week: SW light industry manufacturing industry lost 300 in Shanghai and Shenzhen this week. From March 14 to March 18, 2022, 12.90% of shenwanyi industry recorded positive earnings; SW light industry manufacturing industry index fell 2.28%, underperforming the CSI 300 index by about 1.34 percentage points in the same period. All secondary sub industries recorded negative returns, with SW packaging and printing, SW entertainment products, SW household products and SW papermaking down 1.08%, 2.14%, 2.28% and 3.64% respectively. Only about 20% of the stocks in the industry recorded positive earnings.
Key industry news: (1) according to the data given by IDC earlier, the value of smart home products in 2021 is US $289.9 billion, which will exceed US $400 billion by 2025. At the national two sessions held this year, “digitization” has become one of the hot words, indicating the key direction of social and industrial development in the future. One trend is that the continuous upgrading of consumers’ requirements for quality of life and the strong demand for smart devices are promoting the vigorous development of smart home industry. (2) Recently, the Finance Committee of the State Council held a special meeting and proposed that real estate enterprises should timely study and put forward effective risk prevention and resolution response plans, and put forward supporting measures for the transformation to a new development model. Subsequently, the people’s Bank of China, the China Securities Regulatory Commission, the China Banking and Insurance Regulatory Commission, the State Administration of foreign exchange and other departments also successively released positive signals. Experts believe that the statements of the financial commission of the State Council and relevant departments and the relevant measures to be issued will play an important supporting role in stabilizing the expectations of the real estate market and promoting the steady and healthy development of the market. (3) Since the 14th five year plan, with the implementation of the policy of banning the import of waste paper and the establishment of the goal of carbon peak and carbon neutralization, China’s pulp and paper industry has faced multiple challenges such as raw material structure adjustment, energy structure reform, technology development and exploration of future technological breakthroughs, as well as the decline of the independent and controllable ability of the industrial chain supply chain caused by the shortage of raw materials. In 2021, relevant policies for the paper industry were issued one after another, pointing out that the development mode of the industry should be changed, and the utilization efficiency of water resources, energy, land and plant raw materials should be improved according to the principles of reduction, reuse and recycling, so as to reduce energy consumption and pollutant emission. In this context, the State Key Laboratory of bio based materials and green papermaking, Shandong Sun Paper Co.Ltd(002078) and China paper magazine jointly organized to build a “school enterprise media” exchange platform for the green and efficient utilization of fiber resources and the research and development of new pulping technologies, and decided to continue to organize the “2022 green and efficient utilization of fiber resources and the second symposium on new pulping technologies” in Jinan, Shandong Province in late April.
Maintain the recommended rating of the industry. Recently, the financial commission of the State Council and relevant departments have successively released positive signals, which will play an important supporting role in stabilizing the expectations of the real estate market and promoting the steady and healthy development of the market. In the context of steady growth, the prosperity of the real estate industry is expected to pick up. At the same time, China’s smart home industry is booming. Recently, a number of home enterprises have successively released the “whole home customization” strategy and landing policies, which is expected to boost market confidence and drive the valuation repair of the home industry. It is suggested to pay attention to high-quality leading enterprises with good performance and strong long-term growth certainty in the household industry, such as Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) ), Suofeiya Home Collection Co.Ltd(002572) ( Suofeiya Home Collection Co.Ltd(002572) ), Jason Furniture (Hangzhou) Co.Ltd(603816) ( Jason Furniture (Hangzhou) Co.Ltd(603816) ), etc.
Risk tips: the prosperity of real estate is less than expected, the covid-19 epidemic continues to repeat, Sino US trade friction, intensified market competition, raw material price fluctuations, macroeconomic policy risks, intensified exchange rate fluctuations and other risks.
