Market Review
Last week (April 18-april 22, 2022), the commercial retail sector (Shenwan) fell by 3.31%, the Shanghai Composite Index fell by 3.87%, the Shenzhen Component Index fell by 5.12%, and the Shanghai and Shenzhen 300 fell by 4.19%. The commercial retail sector outperformed the Shanghai and Shenzhen 300 by 0.88 percentage points, ranking 11th in the weekly rise and fall of Shenwan’s 31 primary sub industries.
Demand side
In March this year, the growth rate of social security fell by zero. In March 2022, the total retail sales of social consumer goods in China was 3423.3 billion yuan, a year-on-year decrease of 3.53%. After deducting price factors, the total amount of social zero in March actually decreased by 6.04% year-on-year. The required consumption is stable, and the optional consumption is under pressure. Affected by the epidemic prevention and control, consumers’ demand for daily necessities has increased. At the same time, the optional consumption channels have been blocked and the demand has been restrained. The year-on-year growth rates of the main mandatory categories in March were grain, oil and food (+ 12.5%), beverages (+ 12.6%), Chinese and Western medicines (+ 11.9%), and the growth rates of the main optional categories were cosmetics (- 6.3%), clothing (- 12.7%), gold and jewelry (- 17.9%).
Supply side
Last week, the gold price fluctuated at a high level, and the trend outside China deviated. Last week, China National Gold Group Gold Jewellery Co.Ltd(600916) first fell and then rose, because the exchange rate of the US dollar against the RMB rose by 1422 points last week, and the relative depreciation of the valuation currency supported China National Gold Group Gold Jewellery Co.Ltd(600916) price rise. International gold rose first and then fell, as US Federal Reserve Chairman Powell said in his speech on April 21 that considering the discussion on raising interest rates by 50 basis points in May, the expectation of raising interest rates would curb inflation expectations and drive the gold price down. Diamond demand continued to pick up. In March, diamond imports continued to rise both in volume and price, close to the level in August 2021. Announcement of key companies
[JD] the board of directors is considering paying a special cash dividend. If it decides, it will pass a resolution on or around May 4, 2022 (Hong Kong time). [ Wangfujing Group Co.Ltd(600859) ] in 2021, the operating revenue reached 12.753 billion yuan, a year-on-year increase of 10.55%; The net profit attributable to the parent company was 1.34 billion yuan, a year-on-year increase of 295.61%. [ Easyhome New Retail Group Corporation Limited(000785) ] in 2021, the operating revenue reached 13.071 billion yuan, with a year-on-year increase of 44.88%; The net profit attributable to the parent company was 2.325 billion yuan, a year-on-year increase of 71.36%.
Key industry news
[pinduoduo] it is planned to make 24-hour intra city distribution, and recruit merchants capable of delivering within 24 hours in Beijing, Shanghai, Guangzhou and Shenzhen, mainly fruits. [JD] ① issue the first epidemic prevention and control ABS of Shanghai Stock Exchange in 2022, with an issuance scale of 1 billion yuan. ② Jingdong supermarket 415 City Shopping Festival covers more than 40000 stores, with sales of more than 10000 stores increasing by more than 2 times year-on-year, and sales of food and beverage categories increasing by more than 12 times year-on-year. ③ More than 1000 “contactless community guarantee and supply stations” have been established in closed communities in Shanghai. [ Shanghai Aiyingshi Co.Ltd(603214) ] open the group purchase of milk powder diapers in the community, and the logistics center will distribute the goods to the community within 3 days.
Risk tips
Recurrence and spread of the epidemic; Macroeconomic downturn; Industry policy regulation exceeded expectations; Offline store expansion was lower than expected.
