Key investment points:
Market review last week
Last week, the light industry manufacturing industry underperformed CSI 300-1.63pct: SW light industry manufacturing (- 2.62%) vs CSI 300 (- 0.99%); The top five weekly gains of individual stocks were: packaging and printing – Org Technology Co.Ltd(002701) (5.41%), Mys Group Co.Ltd(002303) (2.82%), Jiamei Food Packaging (Chuzhou) Co.Ltd(002969) (1.44%), Xiamen Hexing Packaging Printing Co.Ltd(002228) (0.81%) and Shantou Dongfeng Printing Co.Ltd(601515) (- 0.29%); Household goods – Zhang Xiaoquan Inc(301055) (13.89%), Oppein Home Group Inc(603833) (7.93%), Suofeiya Home Collection Co.Ltd(002572) (4.22%), Gongniu Group Co.Ltd(603195) (4.03%) and double gun shares (3.16%); Papermaking – Mcc Meili Cloud Computing Industry Investment Co.Ltd(000815) (0.94%), Mudanjiang Hengfeng Paper Co.Ltd(600356) (0.00%), Shandong Huatai Paper Industry Shareholding Co.Ltd(600308) (- 0.18%), Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) (- 0.47%) and Shandong Sun Paper Co.Ltd(002078) (- 0.58%); Entertainment supplies – Zhejiang Natural Outdoor Goods Inc(605080) (7.26%), Chenguang shares (5.06%), St Qunxing (2.90%), Guangzhou Pearl River Piano Group Co.Ltd(002678) (- 2.04%) and Cre8 Direct (Ningbo) Co.Ltd(300703) (- 3.66%).
This week’s view
Packaging and printing: last week, on April 12, the compulsory national standard of electronic cigarette was officially released, and the national standard will be officially implemented on October 1 this year. On April 13, it was determined that the transition period of the measures for the administration of electronic cigarettes would end on September 30, 2022. On April 15, the State Tobacco Monopoly Administration issued the guidance on the issuance of tobacco monopoly production enterprise licenses to e-cigarette related production enterprises, the guidance on the layout of e-cigarette wholesale enterprises, the guidance on the layout and license management of e-cigarette retail outlets, the detailed rules for the implementation of technical review of e-cigarette products, and the detailed rules for the administration of traceability of e-cigarette products.
Compared with the previous exposure draft of the national standard, the officially released national standard has no obvious changes, and clear requirements are made for e-cigarette additives, production and manufacturing, sales channels and so on. At the same time, e-cigarettes without nicotine shall be included in the definition of e-cigarettes and shall not be sold on the market. As a substitute product, the quality of e-cigarette can be clarified. The transition period of the national standard was extended to September 30, leaving sufficient time for e-cigarette related enterprises and sales channels. E-cigarette enterprises can take advantage of the extension of the transition period to develop new tobacco flavors to enrich SKUs and reduce the impact of the prohibition of flavored e-cigarettes on sales. On the whole, China’s tobacco injury and harm reduction market space has been opened. The relevant strict policy standards show that the competent authorities attach importance to the sound development of the industry and encourage and support technological upgrading and innovation.
Recommended combinations: Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) ), Jason Furniture (Hangzhou) Co.Ltd(603816) ( Jason Furniture (Hangzhou) Co.Ltd(603816) ), Suofeiya Home Collection Co.Ltd(002572) ( Suofeiya Home Collection Co.Ltd(002572) ), Chenguang shares ( Shanghai M&G Stationery Inc(603899) ).
This week’s event reminder
Loctek Ergonomic Technology Corp(300729) : performance conference Zhejiang Walrus New Material Co.Ltd(003011) : performance Conference
Jiamei Food Packaging (Chuzhou) Co.Ltd(002969) : expected disclosure date of the first quarterly report Shantou Dongfeng Printing Co.Ltd(601515) : performance Conference
Risk tips
Macroeconomic fluctuations; Rising raw material costs; New production capacity cannot be digested in time; Loss of key customers.
