Follow up comments
On May 18, 2022, the Shanghai Composite Index closed at 308598 points, down 0.25%; The Shenzhen Component Index closed at 1120808 points, down 0.20%. The Chongqing composite index, which we focus on, closed at 321582 points, down 0.12%; Sichuan composite index closed at 778375 points, down 0.38%. The top three stocks of Listed Companies in Sichuan and Chongqing are: Lifan Technology(Group)Co.Ltd(601777) ( Lifan Technology(Group)Co.Ltd(601777) , 10.09%), Sichuan Mingxing Electric Power Co.Ltd(600101) ( Sichuan Mingxing Electric Power Co.Ltd(600101) , 10.02%), Casin Real Estate Development Group Co.Ltd(000838) ( Casin Real Estate Development Group Co.Ltd(000838) , 10.01%). The 42 companies we focused on rose by 0.20% on average, among which the top three stocks were: New Hope Dairy Co.Ltd(002946) ( New Hope Dairy Co.Ltd(002946) , 5.35%), Chengdu Jafaantai Education Technology Co.Ltd(300559) ( Chengdu Jafaantai Education Technology Co.Ltd(300559) , 5.02%), Chongqing Fuling Zhacai Group Co.Ltd(002507) ( Chongqing Fuling Zhacai Group Co.Ltd(002507) , 3.42%). By industry, the top three sectors in Sichuan and Chongqing are electronics (3.32%), national defense and military industry (1.80%) and automobile (1.76%).
Sichuan Provincial Bureau of statistics released the five-year development summary of Sichuan’s clean energy industry. The report shows that in terms of hydropower, the installed capacity of hydropower in Sichuan reached 89.47 million KW at the end of 2021, an increase of 26.1% over the end of 2016. Both the installed capacity and annual power generation ranked first in China. In terms of wind power, at the end of 2021, the installed capacity of wind power in the province reached 5.273 million KW, an increase of 3.2 times over the end of 2016, accounting for 4.6% of the installed capacity of power generation. At the same time, the energy consumption structure of the whole province has been continuously optimized. The proportion of coal fuel has decreased from 33.9% to 25.9%, oil fuel has decreased from 19.0% to 17.0%, and the proportion of non fossil energy has increased from 32.5% to 39.5%. Sichuan is rich in clean energy resources. With the continuous promotion of low-carbon transformation of Chengdu Chongqing dual city economic circle, it will drive the continuous implementation of water, wind, photovoltaic and energy storage related infrastructure projects in Sichuan, and benefit the further development of related industries in Sichuan and Chongqing.
Industry dynamics
The centralized commencement ceremony of 125 major projects in Zigong in the second quarter of 2022 was held in Fushun County, with a total investment of 28.6 billion yuan and an annual planned investment of 15.9 billion yuan, covering all districts and counties of Zigong, involving industrial development, infrastructure, people’s livelihood and social undertakings. (China News Network)
Company dynamics
Guochuang Software Co.Ltd(300520) ( Guochuang Software Co.Ltd(300520) ): issue the pre disclosure announcement on the reduction of shareholders’ shares in the company. The controlling shareholder of the company, Hefei Guochuang Intelligent Technology Co., Ltd., holds 61125400 shares of the company (accounting for 24.86% of the total share capital of the company). It is planned to reduce no more than 4916600 shares of the company through centralized bidding transaction from June 9, 2022 to November 8, 2022, with the reduction ratio not exceeding 2.00% of the total share capital of the company. （iFinD）
Chongqing Pharscin Pharmaceutical Co.Ltd(002907) ( Chongqing Pharscin Pharmaceutical Co.Ltd(002907) ): the announcement on receiving the approval notice of drug re registration was issued. Recently, the company received the approval notice of drug re registration of Sodium Aescinate for injection (5mg and 10mg) approved and issued by Chongqing drug administration, which ensured the normal production and sales of the above drugs. （iFinD）
Risk warning: the economic recovery is lower than expected and the risk of covid-19 outbreak.
