Sichuan caizhou viewpoint
In the first quarter, the economy started smoothly, the Yangtze River Delta resumed work and production, and the plight of key industries is expected to reverse. According to the national economic data released by the Bureau of statistics in the first quarter, China’s GDP was 270178 billion yuan, a year-on-year increase of 4.8% at constant prices, the national fixed asset investment (excluding farmers) was 104872 billion yuan, a year-on-year increase of 9.3%, and infrastructure investment (excluding power, heat, gas and water production and supply industries) increased by 8.5% year-on-year. Among them, investment in water conservancy management increased by 10.0%, investment in public facilities management increased by 8.1%, investment in road transportation increased by 3.6%, and investment in railway transportation decreased by 2.9%. On the whole, the economy started smoothly in the first quarter, but the economic production of some provinces and cities was greatly affected by the epidemic, especially in the Yangtze River Delta. At present, the resumption of work and production in Shanghai has been promoted in an orderly manner, ensuring the stable production of key enterprises and the smooth operation of key industrial chains, actively, steadily and orderly promoting the resumption of work and production of key enterprises, concentrating resources and giving priority to ensuring the resumption of work and production of key industries such as automobile manufacturing, integrated circuit, consumer electronics, equipment manufacturing, material and food, biological medicine 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. In addition, the later stage of major construction projects is expected to usher in centralized construction, benefiting the traditional infrastructure and related industrial chains. In 2022, there were 173 major construction projects in Shanghai, including 67 in science and technology industry, 24 in social livelihood, 17 in ecological civilization construction, 56 in urban infrastructure, and 9 in urban-rural integration and Rural Revitalization. Among these major projects, industrial parks and transportation projects account for a large proportion, and the infrastructure engineering sector will directly benefit. It is suggested to focus on the direction of rail transit equipment, and the relevant targets: Shanghai Tunnel Engineering Co.Ltd(600820) , Hongrun Construction Group Co.Ltd(002062) . Ordinary steel, cement and other building materials are also expected to be driven. According to the data recently released by the Bureau of statistics, in the first quarter, the cement output decreased by 12.1%, the pig iron output decreased by 11%, the crude steel output decreased by 10.5% and the steel output decreased by 5.9% year-on-year. We expect that there will be a concentrated outbreak of demand for building materials at the end of the second quarter, and the price and sales volume of building materials are expected to rise. Relevant targets: Hunan Valin Steel Co.Ltd(000932) , Baoshan Iron & Steel Co.Ltd(600019) , Anhui Conch Cement Company Limited(600585) , etc.
Market performance in one week
On Friday, April 22, 2022, as of the closing, the Shanghai Composite Index fell 3.87% to close at 308692 points, the Shenzhen composite index fell 5.12% and the gem index fell 6.66%. In terms of sectors, only the textile and clothing sector rose by 4.09%, and all the other sectors fell. Among them, real estate, steel and non-ferrous metals fell by 9.20%, 9.05% and 8.08% respectively.
The performance of relevant sectors in the infrastructure industry was poor this week. All sectors were in a downward state. The power sector had the smallest decline, down 0.21%. The top three in the decline list were ordinary steel, real estate and decoration building materials, down 9.52%, 9.20% and 7.93% respectively.
Industry dynamics
Heilongjiang Province issued the “14th five year plan” for the development of digital economy in Heilongjiang Province, which proposed that by 2025, the added value of the core industries of digital economy will account for more than 10% of GDP, the digital economy will achieve leapfrog development, strive to build a digital industrialization northeast base, form a digital Longjiang model of manufacturing industry, build a national model of modern digital agriculture, enhance the primacy of smart ecotourism, and build a cross-border digital cooperation center. It defines the new layout of “one region, two belts and multiple bases” digital economy coordinated development of Harbin digital economy leapfrog development core area, Harbin Daqing Qimu digital economy demonstration belt, digital economy open belt in border areas and regional digital economy base with distinctive characteristics. Focusing on the cultivation and expansion of Longjiang digital product manufacturing industry, we have determined to build 10 digital product manufacturing industrial chains: integrated circuit, sensor, high-definition new display, wearable device, virtual reality, computer, information communication, satellite manufacturing, intelligent equipment and automotive electronics; Focusing on strengthening and optimizing software to build the information technology service industry, it has determined 10 key development areas: basic software, industrial software, application software, embedded software, emerging platform software, and information security, cloud computing, big data, digital creativity and metauniverse. (National Development and Reform Commission website)
On April 19, at the press conference on the development of industry and informatization in the first quarter, the spokesman of the Ministry of industry and information technology pointed out that when promoting the key work of industrial Internet, we should strengthen the new infrastructure and play a “first hand” in the digital economy. Advance the construction of three major systems of network, platform and security moderately, improve the efficiency of key facilities such as industrial Internet big data center, identification analysis system and security situational awareness system, expand the coverage of regions, industries and fields, improve the number of service enterprises, promote the data circulation, effective utilization and security of industrial Internet, and consolidate the foundation of digital economy development. (website of the state information office)
On April 20, the China Banking and Insurance Regulatory Commission and the Ministry of transport issued the opinions on the banking and insurance industry supporting the high-quality development of highway transportation. The opinions encouraged banking and insurance institutions to provide financial support for qualified green low-carbon highway projects and help the transportation sector achieve carbon peak and carbon neutrality. Support transportation enterprises to effectively revitalize the highway stock assets through asset securitization (ABS) and real estate investment trusts (REITs) in the field of infrastructure under the premise of legal compliance and controllable risk. Support insurance companies to participate in highway transportation construction. Give full play to the advantages of large-scale, long-term and high stability of insurance funds, and encourage insurance institutions to participate in the construction of major highway transportation infrastructure, new transportation infrastructure and other projects in the form of creditor’s rights, equity, combination of equity and debt, asset support plan and private fund. Insurance institutions are encouraged to launch appropriate highway traffic project disaster insurance products and services according to the characteristics of different types of projects, and actively participate in highway disaster insurance and other businesses. Insurance funds are encouraged to legally and legally participate in highway development by purchasing local government bonds under the premise of controllable risk. (website of China Banking and Insurance Regulatory Commission)
On April 20, Premier Li Keqiang chaired an executive meeting of the State Council and proposed measures to ensure and increase energy supply, so as to take precautions and promote the construction of energy projects with mature conditions and development needs. 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
Sinosteel Engineering & Technology Co.Ltd(000928) ( Sinosteel Engineering & Technology Co.Ltd(000928) ): the company released the first quarterly report of 2022 on April 17. During the reporting period, the company achieved an operating revenue of 3.05 billion yuan, a year-on-year increase of 10.03%; The net profit attributable to the shareholders of the listed company was 129 million yuan, a year-on-year increase of 4.97%.
Ningbo Construction Co.Ltd(601789) ( Ningbo Construction Co.Ltd(601789) ): from January to March 2022, Ningbo Construction Co.Ltd(601789) and its subsidiaries signed 392 new contracts, with a cumulative contract amount of about RMB 4.494 billion, a decrease of 21.06% over the same period of the previous year.
Among them, the newly signed contract amount of housing construction was 3130163100 yuan, a year-on-year decrease of 30.50%; The newly signed contract amount of infrastructure projects was 969523100 yuan, an increase of 33.84% year-on-year.
Qingdao East Steel Tower Stock Co.Ltd(002545) ( Qingdao East Steel Tower Stock Co.Ltd(002545) ): the company publishes the annual report of 2021. During the reporting period, the company’s total operating revenue was 2781752600 yuan, an increase of 4.92% over the same period of last year; The operating profit was 502891500 yuan, an increase of 49.19% over the same period last year; The total profit was 499615800 yuan, an increase of 39.39% over the same period last year; The net profit attributable to the shareholders of the listed company was 403938300 yuan, an increase of 30.77% over the same period last year.
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.
Sichuan Road & Bridge Co.Ltd(600039) ( Sichuan Road & Bridge Co.Ltd(600039) ): in the first quarter, the company realized an operating revenue of 182859679 million yuan, an increase of 32.77% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was 1572342 million yuan, an increase of 30.92% over the same period of last year; The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 1538738400 yuan, an increase of 30.41% over the same period of the previous year; The total assets were 1404815400 yuan, an increase of 2.51% over the beginning of the reporting period; The owner’s equity attributable to the shareholders of the listed company was 28827178800 yuan, an increase of 6.18% over the beginning of the reporting period; The net assets per share attributable to the shareholders of the listed company was 6.04 yuan, an increase of 6.15% over the beginning of the reporting period.
Guangdong Aofei Data Technology Co.Ltd(300738) ( Guangdong Aofei Data Technology Co.Ltd(300738) ): in the first quarter of 2022, the company realized an operating revenue of 269537 million yuan, a decrease of 4.05% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was 422646 million yuan, an increase of 44.13% year-on-year and 99.62% month on month; The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 307751 million yuan, a year-on-year decrease of 31.02% and a month on month increase of 108.58%; EBITDA (profit before interest, tax, depreciation and amortization) was 1213274 million yuan, a year-on-year increase of 8.92%; The basic earnings per share was 0.1107 yuan / share, with a year-on-year increase of 44.14%.
Risk warning: government expenditure is less than expected; The price rise of raw materials exceeded expectations; The epidemic situation has been repeated on a large scale.
