Overview of Views:
The disturbance of pulp supply side continues, and the pulp price fluctuates in the short term or at a high level. Pay attention to the price increase of paper enterprises. The supply side effects such as strike of overseas pulp mills and poor shipping logistics are still continuing, and the pulp price may remain high. The replenishment of cultural paper inventory and the improvement of import and export are expected to support the paper price. Pay attention to the actual price increase of paper enterprises in April. The leader has the advantage of supply and certain self-sufficiency of pulp, and the profit is expected to improve. Special paper market segments with high prosperity have strong demand toughness and good competition pattern. They are optimistic about the implementation of price increase and improving profitability. Pay attention to Shandong Sun Paper Co.Ltd(002078) and leading special paper enterprises.
The certainty of real estate policy is high, the recovery of demand side data still needs to wait, and the certainty of performance is strong. The improvement of real estate data still needs to wait. Due to the obvious impact of new house sales data on the home demand side, it will still take time for the demand of the industry to improve. Under such circumstances, combined with the recent leading order receiving data, we believe that the leading performance is highly deterministic, and the furniture enterprises that underestimate the value can also layout in advance.
The 2021 annual report of domestic sports brands is excellent, and the future development can be expected. Last week, domestic sportswear companies concentrated on releasing performance, and Li Ning and Anta still had excellent performance in 2021. On the one hand, driven by the double Olympics in 2021, China’s sports enthusiasm is high, and some event factors make the people’s enthusiasm for the national brand high; On the other hand, domestic sports brands have accelerated their catch-up in terms of technical professionalism. The share of domestic sports brands continues to increase, helping the company achieve good performance.
Market Review
This week, the textile and garment industry rose 1.04%, light industry manufacturing rose – 1.52%, and the Shanghai Composite Index rose – 1.19%.
The rise and fall of textile clothing sub sectors are as follows: cotton textile 4.06%, printing and dyeing 2.32%, shoes, hats and other 2.02%, other textiles 1.76%, non sports clothing 0.33%, clocks and jewelry 0.01%, home textile – 0.65% and accessories – 1.92%. The rise and fall of each sub sector of light industry manufacturing are as follows: paper packaging 1.62%, metal packaging 0.50%, sanitary products 0.13%, entertainment products – 0.16%, special paper – 0.68%, ceramic tile floor – 0.89%, finished home – 2.01%, bulk paper – 2.65%, plastic packaging – 3.38%, customized home – 3.46% and printing – 4.46%.
Key tracking:
[Anta sports performance] the company’s revenue in 2021 was 49.328 billion yuan, a year-on-year increase of 38.9%. The profit attributable to shareholders was RMB 7.72 billion, a year-on-year increase of 49.6%. Among them, Anta brand revenue increased by 52.5% year-on-year to 24.01 billion yuan; FILA brand revenue increased by 25.1% year-on-year to RMB 21.82 billion; The revenue of other brands increased by 51.1% year-on-year to 3.49 billion yuan, mainly driven by Descente and kolonsport, and the incubation of new brands became more mature. The overall gross profit margin of the whole year was 61.6%, with a year-on-year increase of 2.4 percentage points.
Key recommendations:
[key recommendations] Joy Kie Corporation Limited(300994) , Huali Industrial Group Company Limited(300979) , Li Ning, Shenzhou International, Minhua holdings, Jason Furniture (Hangzhou) Co.Ltd(603816)
Risk tip: the macroeconomic downturn affects purchasing power, the epidemic development exceeds expectations, and policy risks.
