This week, Sichuan composite index fell 1.86% and Chongqing composite index rose 1.74%.
As of March 18, 2022, the PE of Sichuan sector is 35.97 times, and the overall valuation level has decreased; The PE of Chongqing sector is 17.84 times, and the overall valuation level has increased. By industry, the top three sectors in Sichuan and Chongqing this week were social services (+ 8.14%), banks (+ 2.34%) and commercial retail (+ 1.67%). From the perspective of listed companies, the top three gainers are Pku Healthcare Corp.Ltd(000788) (+ 41.13%), North Chemical Industries Co.Ltd(002246) (+ 31.95%), Chengdu Jafaantai Education Technology Co.Ltd(300559) (+ 22.13%); The top three declines were Tianyu Eco-Environment Co.Ltd(603717) (- 22.60%), Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) (- 12.22%) and Bece Legend Group Co.Ltd(000803) (- 11.24%). The 42 listed companies we focus on in Sichuan and Chongqing fell by 1.52% on average, with the top three rising respectively: Chengdu Jafaantai Education Technology Co.Ltd(300559) (+ 22.13%), Sichuan Languang Development Co.Ltd(600466) (+ 12.99%), Chengdu Shenleng Liquefaction Plant Co.Ltd(300540) (+ 7.31%); The top three declines were: Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) (- 12.22%), Lier Chemical Co.Ltd(002258) (- 7.48%), Sichuan Swellfun Co.Ltd(600779) (- 7.21%).
During the 14th Five Year Plan period, the prefabricated construction industry in Sichuan and Chongqing ushered in new opportunities for development.
Sichuan Provincial Department of housing and urban rural development issued the key points of promoting the development of prefabricated buildings in the province in 2022. In 2022, 58 million square meters of prefabricated buildings will be newly started in Sichuan Province, including 500000 square meters of steel structure prefabricated houses. In addition, this year, Sichuan will study and formulate the implementation plan for promoting the standardized construction of prefabricated buildings, improve the technical standards for the design, production, construction and acceptance of prefabricated buildings, and promote the standardization of design, component production and construction technology. Prefabricated building is an important development direction of green transformation of the construction industry. During the “14th five year plan” period, Sichuan and Chongqing will vigorously promote the construction of green cities, which is expected to continue to release a large amount of demand for the prefabricated building industry in Sichuan and Chongqing. It is suggested to pay attention to the head construction related enterprises in Sichuan and Chongqing who layout prefabricated buildings, green environmental protection materials and other businesses.
Willing to achieve steady growth in performance, the volume of sub high-end liquor continued to increase.
Shede Spirits Co.Ltd(600702) released the annual report for 2021 and the performance forecast for the first quarter of 2022. In 2021, the company achieved an operating revenue of 4.969 billion yuan, a year-on-year increase of 83.80%, and a net profit attributable to shareholders of listed companies of 1.246 billion yuan, a year-on-year increase of 120.89%. The company expects to realize a net profit of 460560 million yuan attributable to shareholders of Listed Companies in the first quarter of 2022, with a year-on-year increase of 52% – 85%. Despite the impact of the economic cycle and social consumption weakness, the consumption of liquor during the Spring Festival has declined. However, the consumption of high-end liquor and sub high end liquor has long-term toughness. From the channels and the disclosure of data from Baijiu enterprises, the sales of high-end liquor have maintained steady growth, and the high-end liquor has continued to expand. The consumption of Sichuan and Chongqing is stable and good. With the gradual development of Shuangcheng economic circle, a large number of major projects will continue to fall. This will help to keep the economic activities in Sichuan and Chongqing areas active and promote Baijiu consumption. It is estimated that the annual performance of Sichuan liquor is strong and it is suggested that Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) and so on.
Risk tip: macroeconomic growth is lower than expected, covid-19 epidemic continues to be at risk, and consumption recovery is lower than expected.
