This week’s special topic: the demand for special paper continues to increase, and the leading growth of subdivided paper types can be expected: special paper has the characteristics of high paper added value, strong application pertinence and specialization of downstream customers. In recent years, with the transfer of production capacity to Asia and the continuous growth of China’s economy, the growth rate of China’s special paper output and consumption is significantly ahead. With the continuous tightening of China’s plastic ban, driven by “replacing plastic with paper”, China’s demand for food packaging paper is expected to release more than 2 million tons in 2025. At the same time, with the increase of consumption of chain restaurants and instant foods in China, China’s food packaging paper industry is expected to accelerate the expansion; China’s express business volume and the output value of the label industry have increased steadily, and the demand for grasin paper has broad growth potential. It is suggested to pay attention to the leading Quzhou Wuzhou Special Paper Co.Ltd(605007) , Xianhe Co.Ltd(603733) in China’s special paper industry.
Investment strategy in 2022: seek “progress” in “change” and take the lead in subdividing leaders. Furniture: focus on domestic market channel reform opportunities. Among them, it is recommended to pay attention to Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , Zbom Home Collection Co.Ltd(603801) , Goldenhome Living Co.Ltd(603180) for customized furniture; For finished furniture, it is recommended to pay attention to Jason Furniture (Hangzhou) Co.Ltd(603816) , Qumei Home Furnishings Group Co.Ltd(603818) , etc. Papermaking, packaging and printing: subdivide and optimize the track pattern, and the strong will always be strong. It is recommended to pay attention to Shandong Sun Paper Co.Ltd(002078) , Shanying International Holdings Co.Ltd(600567) , Xianhe Co.Ltd(603733) , Quzhou Wuzhou Special Paper Co.Ltd(605007) , Chongqing Baiya Sanitary Products Co.Ltd(003006) , Hangzhou Haoyue Personal Care Co.Ltd(605009) , etc. Entertainment and jewelry sector: consumption upgrading continues and prosperity rises. It is recommended to pay attention to Shanghai M&G Stationery Inc(603899) and Chow Tai Seng Jewellery Company Limited(002867) . Retail of home building materials: professional home building materials stores are still dominant, and digital and high-frequency consumption empowerment have become the mainstream. It is recommended to pay attention to Easyhome New Retail Group Corporation Limited(000785) , Red Star Macalline Group Corporation Ltd(601828) leading in digital transformation. Textile and clothing: the national trend continues, and there are good opportunities for sports shoes and children’s wear. It is suggested to pay attention to Anta sports, Huali Industrial Group Company Limited(300979) , Zhejiang Semir Garment Co.Ltd(002563) , Winner Medical Co.Ltd(300888) , Bosideng, etc.
Market review this week: this week, the Shanghai Composite Index fell 1.65%, the light industry manufacturing industry fell 0.18%, slightly outperforming the market, and the textile and garment industry rose 1.52%, outperforming the market. Among them, the paper sector rose 1.73%, the packaging and printing sector fell 1.86%, the home sector rose 1%, the entertainment light industry sector rose 0.69%, and other light industry sectors rose 1.55%. The top three gainers of light industry manufacturing industry this week are panda financial holding (21.51%), Banbao Co.Ltd(603398) (16.73%), Beijing Kingee Culture Development Co.Ltd(002721) (13.76%); The top three declines were Weihua shares (- 13.2%), Shanghai Shunho New Materials Technology Co.Ltd(002565) (- 12.04%) and Shanghai Zijiang Enterprise Group Co.Ltd(600210) (- 11.98%). The top three increases in the textile and garment industry were Shanghai Challenge Textile Co.Ltd(002486) (16.39%), Fujian Fynex Textile Science & Technology Co.Ltd(600493) (11.97%) and Zhejiang Weixing Industrial Development Co.Ltd(002003) (10.92%); The top three declines were winner fashion (- 14.29%), Bosideng (- 13.65%) and Tebu International (- 13.08%).
One week key data tracking: the inner disc of dissolved pulp this week was 6750 yuan / ton, up 1% from last week. The quotation of all pulp seeds was flat compared with that of last week. The average price of double offset paper / coated paper is from – 100 yuan / ton to 5600 / 5700 yuan / ton last week, and the prices of other kinds of paper are stable. The number of commercial housing transactions in 30 large and medium-sized cities this week was 36734, down 8% from last week; The transaction area of commercial housing in 30 large and medium-sized cities was 4 million square meters, down 9% from last week. This week, China’s cotton price index: 328 was 22333 yuan / ton, up 226 yuan / ton from last week; Cotbook: a index: 1% tariff is 20071 yuan / ton, up 133 yuan / ton compared with last week; The price difference between Chinese and foreign cotton was 2262 yuan / ton, an increase of 93 yuan / ton compared with last week; The closing price of cotton futures on Zheng stock exchange this week was 22200 yuan / ton, up 350 yuan / ton from last week; The closing price of cotton futures on the New York Stock Exchange was 115.15 cents / pound, up 2.50 cents / pound from last week.
Risk warning: the price of raw materials fluctuates greatly; Risk of terminal demand slump; Exchange rate fluctuation risk.
