This week, Sichuan composite index rose 0.07%, while Chongqing composite index fell 3.48%.
As of April 15, 2022, the PE of Sichuan sector is 33.15 times, and the overall valuation level has decreased; The PE of Chongqing sector is 17.58 times, and the overall valuation level has decreased. By industry, the top three sectors in Sichuan and Chongqing this week were food and beverage (+6.97%), real estate (+3.85%) and banks (+1.45%). From the perspective of listed companies, the top three gainers are Guanghui Logistics Co.Ltd(600603) (+ 31.70%), Cccg Real Estate Corporation Limited(000736) (+ 26.86%), San Yang Ma (Chongqing) Logistics Co.Ltd(001317) (+ 25.86%); The top three declines were Sichuan Languang Development Co.Ltd(600466) (- 27.40%), Chengdu B-Ray Media Co.Ltd(600880) (- 22.55%) and Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) (- 19.68%). The 42 listed companies we focus on in Sichuan and Chongqing fell by an average of 2.41%, with the top three rising respectively: Luzhou Laojiao Co.Ltd(000568) (+ 10.51%), Sichuan Teway Food Group Co.Ltd(603317) (+ 9.90%), Sichuan Yahua Industrial Group Co.Ltd(002497) (+ 8.35%); The top three declines were: Sichuan Languang Development Co.Ltd(600466) (- 27.40%), Sichuan Injet Electric Co.Ltd(300820) (- 16.49%), Chengdu Shenleng Liquefaction Plant Co.Ltd(300540) (- 15.26%).
Pay attention to the performance of food and beverage sector in Sichuan and Chongqing.
According to the data of Sichuan Bureau of statistics, the CPI of Sichuan increased by 0.9% year-on-year in March, an increase of 0.3 percentage points over the previous month. Among them, the price of food, tobacco and alcohol decreased by 2.2%, the price of transportation and communication increased by 5.5%, the price of education, culture and entertainment increased by 2.9%, the price of other supplies and services increased by 1.9%, the price of clothing increased by 1.7%, the price of housing increased by 1.2%, the price of daily necessities and services increased by 0.9%, and the price of medical care increased by 0.7%. Specifically, affected by the high price of bulk commodities and the recent increase in energy prices, CPI has expanded compared with last month, especially due to the increase of transportation costs and the large increase of CPI in transportation, communication and fresh vegetables. At present, the pig industry is at the bottom of the pig cycle, and the pork price with a decrease of 43.4% continues to suppress CPI. On the whole, Sichuan and Chongqing are less affected by the epidemic, and regional consumption has strong resilience. Under the expectation that the scissors gap between PPI and CPI will gradually narrow, the prosperity and excess return of the food sector have increased significantly. At present, some companies have raised prices and their performance can be repaired.
The RRR reduction will help the smooth progress of infrastructure projects in the Chengdu Chongqing twin city economic circle.
The people’s Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.25 percentage points on April 25, 2022 (excluding financial institutions that have implemented the 5% deposit reserve ratio). In order to increase the support for small and micro enterprises and “agriculture, rural areas and farmers”, for urban commercial banks without inter provincial operation and agricultural commercial banks with deposit reserve ratio higher than 5%, an additional 0.25 percentage point will be reduced on the basis of reducing the deposit reserve ratio by 0.25 percentage point. The RRR reduction will help the smooth progress of infrastructure projects in the Chengdu Chongqing twin city economic circle. The construction of Chengdu Chongqing double city economic circle has been continuously promoted. This year, 40 infrastructure network projects including rail transit, highway, airport and energy, 72 industrial system projects such as manufacturing and digital economy, 30 scientific and technological innovation center projects and 8 Bashu cultural tourism corridor projects will be implemented successively. The total investment is expected to be about 2.04 trillion yuan, of which the annual planned investment is 183.5 billion yuan. The RRR reduction will help the smooth financing of infrastructure projects in the Chengdu Chongqing twin city economic circle, further reduce financing costs and benefit enterprises in new and old infrastructure related sectors in Sichuan and Chongqing.
Risk tip: macroeconomic growth is lower than expected, covid-19 epidemic continues to be at risk, and consumption recovery is lower than expected.
