Market Review
Last week (March 21-march 25, 2022), the commercial retail sector (Shenwan) fell by 1.57%, the Shanghai Composite Index fell by 1.19%, the Shenzhen Component Index fell by 2.08%, and the Shanghai and Shenzhen 300 fell by 2.14%. The commercial retail sector outperformed the Shanghai and Shenzhen 300 by 0.58 percentage points, ranking 21st in the weekly rise and fall of Shenwan’s 31 primary sub industries.
Demand side
From January to February this year, the social zero growth rate rebounded. China’s total retail sales of social consumer goods reached 7442.6 billion yuan, a year-on-year increase of 6.7%, the highest growth rate since August 2021; Excluding price factors, the actual year-on-year growth was 4.9%. The required categories increased steadily, with grain, oil and food + 7.9%, beverages + 11.4% and daily necessities + 10.7%; Except for oil and products, gold jewelry grew the fastest year-on-year, reaching 19.5%. E-commerce consumption continued to rise, with online retail sales of goods and services up 11.2% year-on-year and physical goods up 13.6% year-on-year.
Supply side
In February this year, CPI was flat year-on-year and rose month on month. In February, CPI rose by 0.9% year-on-year, compared with the previous value of 0.9%; Up 0.6% month on month (MOM), compared with the previous value of 0.4%. It was mainly driven by the decline in pig prices and the rise in the prices of refined oil and natural gas in China. In February this year, PPI fell year-on-year and became positive month on month. In February, PPI increased by 8.8% year-on-year, with the previous value of 9.1%; It rose 0.5% month on month, down 0.2% from the previous value. Gold prices fluctuated at a high level and fell slightly last week. The diamond index continued to peak and continued to rise last week. The import volume and price of diamonds rose in February, which was significantly warmer.
Announcement of key companies
[Shanghai Stock Exchange and Shenzhen Stock Exchange] issued the Interim Measures for interconnection with overseas stock exchanges for the listing and trading of depositary receipts. [pinduoduo] the company’s Q4 revenue was 27.231 billion yuan, a year-on-year increase of 3%; The annual revenue was 93.95 billion yuan, a year-on-year increase of 58%. Q4 net profit attributable to the parent company was 6.62 billion yuan, a year-on-year increase of 581%; For the whole year, it was 7.769 billion yuan, a year-on-year increase of 208%. [Alibaba] the scale of the share repurchase plan has increased from US $15 billion to US $25 billion, which is valid until March 2024. [ Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) ] in 2021, the company’s revenue was 51.063 billion yuan, a year-on-year increase of 12%; The net profit attributable to the parent company was 3.861 billion yuan, a year-on-year increase of 7%; The non net profit attributable to the parent company was 2.799 billion yuan, a year-on-year increase of 13%.
Key industry news
[JD] dismantled the retail V business group, and the original four business lines were integrated into different business groups; The newly established intra city purchase business department appoints he Huijian as the person in charge and reports to the CEO of JD retail. [Alibaba] taote announced the launch of taote 10 yuan store and taote 100, which are respectively targeted at small objects and commodities covering various life scenes and consumption upgrading trend commodities.
Risk tips
Recurrence and spread of the epidemic; Macroeconomic downturn; Industry policy regulation exceeded expectations; Offline store expansion was lower than expected.
