Key investment points:
Market review last week
Last week, the light industry manufacturing industry lost 1.34pct to CSI 300: SW light industry manufacturing (- 2.28%) vs CSI 300 (- 0.94%); The top five weekly gains of individual stocks were: packaging and printing – Tungkong Inc(002117) (9.18%), Jinfu Technology Co.Ltd(003018) (8.23%), Xi’An Global Printing Co.Ltd(002799) (6.57%), Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) (4.46%) and Zhuhai Zhongfu Enterprise Co.Ltd(000659) (3.72%); Household products – Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) (13.52%), Nanjing Olo Home Furnishing Co.Ltd(603326) (8.83%), Vohringer Home Technology Co.Ltd(603226) (7.33%), Zhejiang Xidamen New Material Co.Ltd(605155) (6.72%) and Shandong Linuo Technical Glass Co.Ltd(301188) (5.01%); Papermaking – Xiamen Anne Co.Ltd(002235) (7.08%), Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) (5.69%), St Songyang (- 0.78%), Shanying International Holdings Co.Ltd(600567) (- 1.31%) and Qifeng New Material Co.Ltd(002521) (- 1.71%); Entertainment supplies – Shenzhen Comix Group Co.Ltd(002301) (4.83%), Shuhua Sports Co.Ltd(605299) (%), Impulse (Qingdao) Healthtechco.Ltd(002899) (- 0.92%), Shanghai M&G Stationery Inc(603899) (- 0.18%) and Zhejiang Natural Outdoor Goods Inc(605080) (- 1.53%).
This week’s view
Household goods: the financial stability and Development Commission of the State Council held a special meeting to further clarify the “policy bottom” of the real estate industry. Although the real estate completion and sales data from January to February were declining, the decline was less than the market expectation. From January to February, the sales of building materials and home stores increased significantly by 52.07% year-on-year, of which the sales in February increased by 86.55% year-on-year, while the retail sales of furniture decreased by 6% from January to February. In the case of repeated outbreaks in China in February, the sales of stores have achieved rapid growth. Consumers have consumer demand for post cycle categories such as home decoration, building materials, home appliances and household appliances, but it will take some time to fully reflect the level of furniture retail sales. On the other hand, from January to February, the head company still had a good growth performance in receiving orders, and could achieve a growth of 20% + or even higher. Overall, the weakness of the short-term real estate industry does suppress the valuation of the home sector, but with the clear and continuous consolidation of the “policy bottom”, the pessimism will gradually dissipate.
Packaging and printing: the national standard of electronic cigarette is expected to come into force before May. The restrictions of the new policy on flavored e-cigarettes have a great impact on the sales of e-cigarettes. At the same time, it is also a major test for relevant enterprises in the industry in terms of atomization technology and taste development. Overall, the promotion and implementation of the new deal will indeed cause “pain” in the industry, and the valuation of e-cigarette sector is under pressure. However, the state has made it clear that the development direction of e-cigarette as a substitute for cigarette products. From the medium and long-term perspective, the foundation for the sound development of the industry has been established.
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
Zhang Xiaoquan Inc(301055) : performance conference Monalisa Group Co.Ltd(002918) : convening of the general meeting of shareholders
Quzhou Wuzhou Special Paper Co.Ltd(605007) : convening of the general meeting of shareholders Qifeng New Material Co.Ltd(002521) : expected disclosure of the annual report
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
