This week’s review of Shanghai and Shenzhen manufacturing industry: SW 300. From April 6 to April 8, 2022, 25.81% of shenwanyi industry recorded positive earnings; SW light industry manufacturing industry index fell 1.36%, underperforming the CSI 300 index by about 0.30 percentage points in the same period. All secondary sub sectors of SW light manufacturing recorded negative returns, with SW household products, SW paper, SW packaging and printing and SW entertainment products falling by 0.10%, 0.58%, 3.01% and 3.63% respectively. Nearly 30% of the stocks in the industry recorded positive returns.
Key industry news: (1) previously, europay, gujia, Guangzhou Shangpin Home Collection Co.Ltd(300616) , Huawei, etc. successively launched new packages, with prices ranging from 1000 yuan to 10000 yuan. From the package content launched by various companies, it is not too much to summarize it with “similar” and most of them focus on customization + finished furniture + soft decoration. This “package” wind is mainly pervaded in the field of whole house customization. Since the second half of last year, the wind has increased significantly this year. Leju finance and economics has incomplete statistics, and more than 10 have participated in it. Since 2021, the household industry has not only been affected by the downward environment of upstream real estate, but also faced the current situation of rising raw material prices. The package launched by the enterprise packs multiple single product items from whole house customization to whole house customization, which will save in logistics, transportation, labor and other aspects, and can control the cost to a certain extent. (2) According to the latest data from IDC, the shipment volume of China’s smart home equipment market in the fourth quarter of 2021 was 63.37 million units, a year-on-year increase of 4.1%. In 2021, the shipment volume of China’s smart home equipment market exceeded 220 million units, with a year-on-year increase of 9.2%. Although the market has not seen a double-digit rebound under the pressure of both supply and demand, behind the volume of shipments can not be ignored is the upgrading and adjustment of China’s smart home market. In the process of continuous optimization, the market will usher in new development opportunities. It is expected that the shipment volume of China’s smart home equipment market will exceed 260 million units in 2022, with a year-on-year increase of 17.1%. (3) On April 6, the financial cheetah of Modern Express interviewed a number of paper enterprises and learned that affected by factors such as raw material prices and transportation costs, some paper varieties increased by 300 yuan to 500 yuan per ton. There were two concentrated price increases in January and March this year Lbx Pharmacy Chain Joint Stock Company(603883) . Some institutions believe that in the first quarter, cultural paper enterprises launched spring bidding. Under the dual guidance of expanding market demand and increasing costs, paper enterprises set off a “price rise tide”.
Maintain the recommended rating of the industry. In the household goods sector, in the context of the current steady growth, there are frequent policies related to good real estate, and the household sector is expected to usher in valuation repair opportunities. Recently, “the whole custom package style” has revived, and the packages of most enterprises are mainly “customization + finished furniture + soft decoration”. “Whole home customization” is a competition for the comprehensive ability of enterprises. The layout of head home furnishing enterprises has obviously taken the lead in the industry. “Whole home customization” may be a key turning point to accelerate the concentration of the home furnishing industry. It is suggested to pay attention to relevant high-quality household leaders: Suofeiya Home Collection Co.Ltd(002572) ( Suofeiya Home Collection Co.Ltd(002572) ), Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) ), Jason Furniture (Hangzhou) Co.Ltd(603816) ( Jason Furniture (Hangzhou) Co.Ltd(603816) ), 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.
