Key investment points:
Market review of this week: SW light industry manufacturing industry lost 300 in Shanghai and Shenzhen this week. From March 28 to April 1, 2022, 74.19% of shenwanyi industry recorded positive earnings; SW light manufacturing industry index rose 0.33%, underperforming the CSI 300 index by about 2.10 percentage points in the same period. Half of the secondary sub industries of SW light manufacturing recorded positive earnings, while SW household products and SW papermaking increased by 1.73% and 0.08% respectively; The remaining half of the secondary sub industries recorded negative returns, with SW packaging and printing and SW entertainment products falling by – 0.82% and – 1.18% respectively. Fifty percent of the stocks in the industry recorded positive returns.
Key industry news: (1) according to the latest market news, Chenming, Huatai, Shandong Sun Paper Co.Ltd(002078) , Jianghe, app and other paper mills have also issued price increase letters again, raising the price of some paper varieties by Tus-Design Group Co.Ltd(300500) yuan / ton. Among them, Chenming Group: since April 1, 2022, the price of the company’s special paper series products has been adjusted as follows: 1. The price of thermal paper, thermal base paper and carbon free base paper series products has been increased by 500 yuan / ton; 2. The price of kraft paper series products has been increased by 300 yuan / ton. App cultural paper: affected by the sharp rise in the cost of raw materials, the company has raised the price of all kinds of paper and gram weight paper products produced by Jindong and Jinhai by 300 yuan / ton (including tax) on the basis of March 2022 since April 1, 2022. (2) Brazil Suzano paper, the world’s largest pulp producer, recently announced that the price of staple fiber pulp exported to China will rise by US $100 / ton to US $780 / ton from April 1. In addition, Alexandre Nicolini, director of klabin paper in Brazil, also said that the company had raised the price of staple fiber pulp exported to China by US $100 to US $780 per ton since mid March. (3) On February 15, 2022, China and New Zealand completed the China approval procedure for the upgraded free trade agreement, which will enter into force on April 7, 2022. One of the main results of the upgrade is the elimination of tariffs on 12 kinds of wood and paper products within 10 years. Once fully implemented, this means that 99% of New Zealand’s US $4 billion timber and paper exports to China will receive duty-free access.
Maintain the recommended rating of the industry. In the papermaking sector, at present, some kinds of pulp paper are driven by overseas demand, and the export is active. Moreover, the price of raw material pulp is still high and volatile, the cost pressure is large, and the willingness of paper mills to increase prices is enhanced. Chenming, Huatai, Shandong Sun Paper Co.Ltd(002078) , Jianghe, app and other paper mills issued price increase letters again, raising the price of some kinds of paper by Tus-Design Group Co.Ltd(300500) yuan / ton. In the short term, with the support of cost, the price of finished paper may rise steadily, but under the influence of China’s epidemic, demand and logistics may form a certain resistance to the price rise, and the market demand is general, the order is limited, and the actual transaction is discussed. In the later stage, it is suggested to continue to pay attention to the global epidemic situation and the trend of pulp price. It is suggested to pay attention to China’s major paper enterprises: Shandong Bohui Paper Industry Co.Ltd(600966) ( Shandong Bohui Paper Industry Co.Ltd(600966) ), Shandong Chenming Paper Holdings Limited(000488) ( Shandong Chenming Paper Holdings Limited(000488) ), Shandong Sun Paper Co.Ltd(002078) ( Shandong Sun Paper Co.Ltd(002078) ), etc.
Risk tips: the prosperity of real estate is less than expected, the covid-19 epidemic continues to repeat, Sino US trade friction, intensified market competition, raw material price fluctuations, macroeconomic policy risks, intensified exchange rate fluctuations and other risks.
