Market Review
Last week (may 16-may 20, 2022), the commerce and retail sector (Shenwan) rose by 1.40%, the Shanghai Composite Index rose by 2.02%, the Shenzhen Component Index rose by 2.64%, the Shanghai and Shenzhen 300 rose by 2.23%. The commerce and retail sector lost the Shanghai and Shenzhen 300 by 0.83 percentage points, ranking 22nd in the weekly rise and fall of Shenwan’s 31 primary sub industries.
Demand side
In April this year, the social zero growth rate continued to decline. In April 2022, the total retail sales of social consumer goods in China was 2948.3 billion yuan, a year-on-year decrease of 11.1%. The retail sales of consumer goods other than automobiles were 2691.6 billion yuan, a year-on-year decrease of 8.4%; Excluding price factors, the total amount of social zero in April actually decreased by 14.0% year-on-year.
The required consumption is stable, and the optional consumption is under pressure. Affected by the epidemic prevention and control, consumers’ hoarding demand for daily necessities has increased. At the same time, the optional consumption channels have been blocked and the demand has been restrained, resulting in an overall decline except for oil prices. The year-on-year growth rates of mandatory categories in April were grain, oil and food (+ 10.0%), beverages (+ 6.0%), tobacco and alcohol (- 7.0%), daily necessities (- 10.2%), Chinese and Western medicines (+ 7.9%), and the growth rates of main optional categories were cosmetics (- 22.3%), clothing (- 22.8%) and gold jewelry (- 26.7%).
Supply side
The gold price fluctuated at a high level last week, and the external market closed up that week, as investors turned to safe haven assets such as gold against the background of market turmoil.
In April, the import amount and quantity of diamonds fell, and the unit price of imported diamonds decreased by 14.2% month on month from US $4.211 million / kg in March 2022 to US $3.612 million / kg in April 2022.
Announcement of key companies
[JD group] the total revenue of 2022q1 was 239.7 billion yuan, an increase of 18.0% year-on-year; The net loss attributable to the parent company reached 3 billion yuan, and the net profit in the same period last year reached 3.6 billion yuan. As of March 31, 2022, JD had 580 million active users in the past 12 months, up 16.2% from 499.8 million in the same period last year. [ Anhui Andeli Department Store Co.Ltd(603031) ] the application for non-public offering of shares has been accepted by the CSRC. Key industry news
[JD] ① 618 this year will be fully opened at 8 p.m. on May 23 and will last until June 20. ② Jingdong international officially settled in xiaohongshu. [Suning] the flash delivery service was launched, focusing on mobile phones, computers, digital products and household electrical appliances. The new machines were delivered to home in one hour at the fastest, covering more than 140 cities in the first batch. [Yintai department store] 520 jointly launched limited digital collections with 5 brands.
Risk tips
Recurrence and spread of the epidemic; Macroeconomic downturn; Industry policy regulation exceeded expectations; Offline store expansion was lower than expected.
