Core view
Market review. The top five companies in the A-share light industry sector since May are Yibinpaperindustryco.Ltd(600793) , TONGCHAN Lixing, Yotrio Group Co.Ltd(002489) , Banbao Co.Ltd(603398) , Xlinmen Furniture Co.Ltd(603008) ; The top five companies in the light industry sector of Hong Kong stocks were Xingli (Hong Kong) holding, shetu holding, Shuncheng, design metropolis and HuiSen home. The valuation of light industry sector targets, especially some household targets, has been repaired recently, but it is still in the lower middle position in the past two years.
In April, the growth rate of manufacturing side was stable, and the retail sales of consumer side decreased. In April, the social security zero year-on-year – 11.1%. Specifically, the light industry sub industry: the retail sales of cultural office supplies fell, with a year-on-year decrease of – 4.8% in April; Retail sales of daily necessities were – 10.2% year-on-year in April. The retail sales of furniture in April was – 14.0% year-on-year. In April, the year-on-year increase of PPI of all industrial products fell slightly, and the year-on-year increase of PPI of papermaking and paper products industry increased slightly. In April, the export volume of furniture decreased year-on-year, and the growth of pulp, paper and its products increased slightly.
Pulp and paper prices basically stabilized. In late April, the wood pulp market remained high and volatile. In the last week of April, the weekly average price of imported coniferous pulp was 7165 yuan / ton, down 0.05% from last week; The weekly average price of imported broad-leaved pulp was 6023 yuan / ton, up 0.09% from last week. In terms of cultural paper, the supply and demand pressure of double offset paper continues to increase, and the market price is stable and rising slightly. Affected by the epidemic, printing plants in many places across the country are under operated, the delivery and logistics are limited, and the transaction is relatively low. In terms of packaging paper, the market supply and demand remained stable temporarily, and the price fluctuated downward. Among them, the market price of white cardboard decreased significantly. The growth rate of real estate transaction construction continued to fluctuate downward trend. On the supply side, the performance of real estate sales and construction continued to decline in April, and the completion performance recovered slightly. See the situation of the current month for details: the newly started residential area in April was – 44.9% year-on-year; In April, the completed residential area was – 12.2% year-on-year; In April, the residential sales area was – 42.4% year-on-year.
Online data: consumption growth accelerated under the epidemic. In April, the company focused on the high growth of sales volume of some home furnishings and official flagship stores of Jiaqing. The top five tmall flagship stores in terms of sales growth are Easyhome New Retail Group Corporation Limited(000785) / super power / Xlinmen Furniture Co.Ltd(603008) / Libai group / Zhibang, with sales of + 1024% / 132% / 129% / 123% / 83% year-on-year respectively.
Company announcement and industry news in light industry sector. The new smoking ban Ordinance in Hong Kong has come into force Suofeiya Home Collection Co.Ltd(002572) rush to the beach, subdivide the new track into the category of “integration of wall and ground”, and plan to open thousands of cities and stores Easyhome New Retail Group Corporation Limited(000785) successfully won a high-quality plot of about 274 mu in Yeji District, Lu’an City, Anhui Province; During the Red Star Red Star Macalline Group Corporation Ltd(601828) may day shopping festival, the total number of consumers in shopping malls nationwide increased by 65.6% year-on-year, and the number of orders increased by 160%.
Investment suggestion: optimistic about the rebound of rigid consumer demand after the epidemic, and grasp the opportunity of fundamentals bottoming under the impact of the epidemic. Under the impact of the epidemic, the retail sales at the consumer end decreased in April, and the decline in real estate transaction volume and construction volume continued to expand. From the online data, household cleaning products, as a required consumption, accelerated the growth of online sales; The online sales of some household products are also bright, but the main consumption scenes of household products are still offline. Due to the difficulty of changing the decoration demand of consumers in the short term and the release of loose real estate policies, the rebound of household consumption demand after the epidemic is expected. Focus on recommending high-quality leading enterprises with strong performance support and strong certainty of long-term growth, Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , Chenguang shares, Chongqing Baiya Sanitary Products Co.Ltd(003006) , Shandong Sun Paper Co.Ltd(002078) , SIMORE international.
Risk warning: repeated impact of epidemic situation; Real estate construction continued to decline; The competition pattern of the industry has deteriorated.
