Follow up comments
On January 12, 2022, the Shanghai Composite Index closed at 3597.43 points, up 0.84%; The Shenzhen Component Index closed at 14421.20 points, up 1.39%. The Chongqing composite index, which we focus on, closed at 3831.15 points, up 1.23%; Sichuan composite index closed at 9596.60 points, up 1.51%. The top three stocks of Listed Companies in Sichuan and Chongqing are: North Chemical Industries Co.Ltd(002246) (002246,10.02%), Sichuan Jinshi Technology Co.Ltd(002951) (002951,10.01%), State Grid Information&Communication Co.Ltd(600131) (600131,7.97%). The 42 companies we focused on rose by an average of 1.17%, of which the top three stocks were: Lier Chemical Co.Ltd(002258) (002258,5.27%), Mianyang Fulin Precision Co.Ltd(300432) (300432,5.16%), Maccura Biotechnology Co.Ltd(300463) (300463,4.50%). By industry, the top three sectors in Sichuan and Chongqing are light manufacturing (+ 4.50%), textile and garment (+ 3.13%) and leisure services (+ 3.11%).
Sichuan provincial government issued the list of key projects in Sichuan Province in 2022, which lists 700 projects in total. Among them, there are 454 projects to be continued and 246 projects to be started in 2022. Specifically, 700 key projects include infrastructure, industry, livelihood projects, environmental protection and ecological construction. In terms of infrastructure, many expressways and railways connecting cities in the Chengdu Chongqing twin city economic circle will start construction. Among the 327 industrial projects, new energy industry chain related projects account for a large proportion. The economic growth in Sichuan and Chongqing is steady. The investment in planned construction projects in 2022 will reach 2 trillion yuan. With the smooth implementation of a large number of projects this year, interregional cooperation will be promoted smoothly. On the one hand, it will bring a lot of market demand to infrastructure related industries and help the rapid growth of enterprise performance in relevant industrial chains in the region. On the other hand, under the double carbon policy, the whole new energy industry chain will maintain rapid development during the “14th five year plan” period. Grasping the industrial development opportunities and increasing the investment in the construction of regional new energy related facilities will help to meet the needs of energy revolution in Sichuan and Chongqing and promote the rapid development of new energy industry in Sichuan and Chongqing.
Industry dynamics
The general office of Sichuan provincial government issued the drug safety and high quality development plan of Sichuan Province during the 14th five year plan, which made it clear that by the end of the 14th five year plan, China would build a first-class drug supervision system and mechanism, a first-class professional drug supervision team and a first-class drug technical support capacity. (China News Network)
Company dynamics
Sichuan Hebang Biotechnology Co.Ltd(603077) (603077): the announcement of annual performance increase in 2021 is issued. It is expected that the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in 2021 will increase by RMB 2.621-2.921 billion compared with the same period of last year, with a year-on-year increase of 687.36% – 766.04%.
Sichuan Tianyi Comheart Telecom Co.Ltd(300504) (300504): release the performance forecast for 2021. It is expected that the net profit attributable to the shareholders of the listed company will reach 175-190 million yuan in 2021, with a year-on-year increase of 58.83% – 72.45%.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
