Index
On Thursday, April 21, 2022, as of the closing, the Shanghai stock index fell 2.26% to 307981 points, the Shenzhen Component Index fell 2.70%, and the gem index fell 2.17%. The turnover between the two markets was 856.3 billion yuan, and the northbound capital bought a net 911 million yuan today.
Comments
In the past two months, the epidemic situation in many places in China has been serious repeatedly, enterprises have stopped production, logistics supply has been blocked, China’s economic fundamentals are expected to decrease, exports have fallen, the RMB exchange rate has depreciated, and market funds have flowed out, resulting in a serious lack of confidence in the stock market. However, from the new data of the epidemic, the inflection point of the epidemic is expected to appear in the near future. At the same time, the Shanghai Economic and Information Technology Commission issued the guidelines for the prevention and control of the epidemic situation of industrial enterprises returning to work and production in Shanghai (the first edition), which made it clear that district governments, streets, towns and parks should actively support enterprises returning to work and production and guide enterprises to “one enterprise and one policy”. On April 18, the State Council held a teleconference to ensure smooth logistics and promote the stability of the industrial chain and supply chain, requiring the establishment of a white list of key industries and foreign trade enterprises to achieve “people’s livelihood, continuous freight transportation and non-stop production”, and concentrate resources to give priority to the resumption of work and production in key industries such as automobile manufacturing, integrated circuit, consumer electronics, equipment manufacturing, material and food, biomedicine and so on. In the context of orderly resumption of work and production, we believe that listed companies in high-end manufacturing industries in the Yangtze River Delta have the logic of dilemma reversal and superimpose the long-term main line of digital infrastructure. It is suggested to pay attention to the direction of optical modules, optical fibers and optical cables, industrial interconnection and other related targets: Broadex Technologies Co.Ltd(300548) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Shanghai Baosight Software Co.Ltd(600845) , etc.
Industry dynamics
Premier Li Keqiang presided over the State Council’s preparatory meeting on April 20 to determine the conditions for the commencement of energy supply projects. The meeting made it clear that nuclear power should be developed in an orderly manner under the premise of strict supervision and ensuring absolute safety, and the three new nuclear power unit projects of Zhejiang Sanmen, Shandong Haiyang and Guangdong Lufeng, which have been included in the national plan after years of preparation and comprehensive evaluation and review, should be approved. (China government website)
Company dynamics
Guangdong Tapai Group Co.Ltd(002233) ( Guangdong Tapai Group Co.Ltd(002233) ): in the first quarter, the company achieved an operating revenue of 1.255 billion yuan, a year-on-year decrease of 16.37%; The net profit was 52.63 million yuan, a year-on-year decrease of 85.04%; The basic earnings per share is 0.05 yuan. Due to the decline of cement sales, the company’s revenue decreased during the reporting period; Affected by the rise of coal prices, the average sales cost of cement increased and the profitability declined; At the same time, affected by the decline of stock index, the company’s securities investment suffered more floating losses during the reporting period, resulting in a significant year-on-year decline in non recurring profits and losses. （iFinD）
Risk warning: the implementation of the policy is less than expected; The price rise of raw materials exceeded expectations; The epidemic affected the economy more than expected.
