Overview of Views:
Furniture leaders have strong performance certainty, waiting for the real estate demand side data to pick up. Furniture leading companies bucked the trend of high increase in order receiving data in the first quarter of this year, showing strong performance certainty. This week, Suofeiya Home Collection Co.Ltd(002572) and Goldenhome Living Co.Ltd(603180) released their annual reports. There are still positive measures and high performance targets this year. The relaxation of the real estate policy of “implementing policies for the city” continues, and the real estate sales data is expected to improve, which will drive the overall demand of the furniture industry to rise. We believe that at present, we can pay attention to the leaders with strong performance certainty, and lay out undervalued furniture enterprises in advance.
The national standard of e-cigarette was officially announced, and the industry entered the era of standardized supervision. The national standard of electronic cigarette was officially released on April 12 and will be officially implemented on October 1, marking that the industry has entered the era of standardized supervision. In the case of limited product taste, it is expected that the short-term demand of the industry will be under pressure, but the logic that the long-term harm reduction demand promotes the increase of e-cigarette penetration remains unchanged; E-cigarette products are more competitive. In terms of tobacco taste research and development, taste improvement and harm reduction ability, leading enterprises are relatively dominant. The deadline of the regulatory transition period is determined as September 30, with sufficient time, which is conducive to the smooth transition of the industry and reduce the impact on the production and operation of enterprises.
Market Review
This week, the textile and garment industry rose – 3.47%, light industry manufacturing rose – 2.62%, and the Shanghai Composite Index rose – 1.25%. The rise and fall of textile clothing sub sectors are as follows: Home Textile – 0.81%, cotton textile – 2.43%, non sports clothing – 2.86%, printing and dyeing – 2.92%, shoes, hats and others – 3.04%, accessories – 4.02%, other textiles – 4.75%, clocks and jewelry – 5.34%. The rise and fall of each sub sector of light industry manufacturing were as follows: customized home furnishing 2.68%, finished home furnishing – 1.80%, bulk paper – 2.05%, metal packaging – 2.35%, ceramic tile floor – 4.20%, paper packaging – 4.58%, entertainment products – 5.46%, special paper – 6.33%, plastic packaging – 7.04%, sanitary products – 7.90% and printing – 8.44%.
Key tracking:
[ Suofeiya Home Collection Co.Ltd(002572) | annual report] the company’s operating revenue in 2021 was 10.407 billion yuan, a year-on-year increase of + 24.59%; The net profit attributable to the parent company was 123 million yuan, a year-on-year increase of – 89.72%. Among them, Q4 revenue was RMB 3.163 billion, a year-on-year -2.92%; Q4 lost 726 million yuan and made 495 million yuan in the same period last year. The company made a total withdrawal of 909 million yuan for the accounts receivable from Evergrande group.
[ Shandong Sun Paper Co.Ltd(002078) | annual report] the company’s operating revenue in 2021 was 31.997 billion yuan, a year-on-year increase of + 48.21%; The net profit attributable to the parent company was 2.957 billion yuan, a year-on-year increase of + 51.39%. Among them, Q4 revenue was 8.282 billion yuan, a year-on-year increase of + 39.19%; The net profit attributable to the parent company was 189 million yuan, a year-on-year increase of – 66.98%.
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.
