Key investment points:
Market review last week
Last week, the light industry manufacturing industry outperformed CSI by Ceepower Co.Ltd(300062) pct: SW light industry manufacturing (- 1.52%) vs CSI 300 (- 2.14%); The top five weekly gains of individual stocks were: packaging and printing – Shanghai Shunho New Materials Technology Co.Ltd(002565) (14.84%), Guizhou Yongji Printing Co.Ltd(603058) (11.98%), Shaanxi Jinye Science Technology And Education Group Co.Ltd(000812) (11.29%), Shandong Chiway Industry Development Co.Ltd(002374) (10.64%) and Guangdong Enpack Packaging Co.Ltd(002846) (7.93%); Household products – Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) (12.01%), Yayi Technology (11.20%), Shandong Linuo Technical Glass Co.Ltd(301188) (8.01%), Zoy Home Furnishing Co.Ltd(603709) (4.94%) and Elegant Home-Tech Co.Ltd(603221) (4.55%); Papermaking – Hangzhou Huawang New Material Technology Co.Ltd(605377) (5.83%), Guangdong Songyang Recycle Resources Co.Ltd(603863) (2.92%), Minfeng Special Paper Co.Ltd(600235) (2.73%), Zhejiang Jingxing Paper Joint Stock Co.Ltd(002067) (2.05%) and Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) (1.83%); Entertainment supplies – Cre8 Direct (Ningbo) Co.Ltd(300703) (8.33%), mubang high tech (4.64%), St Qunxing (2.89%), Zhejiang Natural Outdoor Goods Inc(605080) (2.57%) and Shanghai M&G Stationery Inc(603899) (0.22%).
This week’s view
The U.S. trade representative’s office announced on March 23 that it would resume 352 tariff exemptions for imports from China, including some household and household appliances, which can be regarded as a phased easing of China US relations. Enterprises engaged in the export of related products will directly benefit. Secondly, it may be expected that the probability of expanding the exemption scope for light industrial manufacturing goods will increase, or the pessimistic expectation of the export industrial chain will be repaired.
Household goods: in March, the epidemic situation in many regions of China was repeated, which really affected the “315 promotion”. However, in general, the real household consumption demand will not disappear due to the epidemic, but will be delayed. In addition, the “policy bottom” of the real estate industry is clear and continues to be consolidated, and the pessimism will gradually dissipate. The protection of residents’ reasonable housing demand and the renovation of existing houses will support the demand of household categories. Under the circumstance that the “Matthew effect” of the industry will become more and more obvious, the long-term allocation value of leading stocks deserves attention.
Packaging and printing: last week, Huizhou and Xiamen were selected as pilot cities for e-cigarette supervision. The pilot time is from April 1 to June 30. During this period, the two cities can still sell flavored e-cigarettes. The pilot content mainly focuses on the distribution and channel level. The core is to explore the path in line with the development and supervision of China’s e-cigarette industry, further optimize the development environment of the industry in the future and promote the healthy and benign growth of the industry. The state has made it clear that the development direction of e-cigarettes as alternative cigarette products is optimistic about the development of the 100 billion market.
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
Shanghai Haishun New Pharmaceutical Packaging Co.Ltd(300501) : expected disclosure of annual report Shanghai M&G Stationery Inc(603899) : change of securities abbreviation
Shanghai Zijiang Enterprise Group Co.Ltd(600210) : performance conference Beijing Shengtong Printing Co.Ltd(002599) : convening of the general meeting of shareholders
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
