Follow up comments
On January 18, 2022, the Shanghai Composite Index closed at 3569.91 points, up 0.80%; The Shenzhen Component Index closed at 14391.39 points, up 0.19%. The Chongqing composite index, which we focus on, closed at 3771.64 points, up 0.25%; Sichuan composite index closed at 9414.29 points, up 0.58%. The top three stocks of Listed Companies in Sichuan and Chongqing are: Sichuan Jinshi Technology Co.Ltd(002951) (002951, 10.03%), San Yang Ma (Chongqing) Logistics Co.Ltd(001317) (001317, 10.00%), Chongqing Sokon Industry Group Stock Co.Ltd(601127) (601127, 10.00%). The 42 companies we focused on fell by an average of 1.02%, of which the top three stocks were: Jinke Property Group Co.Ltd(000656) (000656, 4.69%), Dongfang Electric Corporation Limited(600875) (600875, 3.24%), Luzhou Laojiao Co.Ltd(000568) (000568, 2.63%). By industry, the top three sectors in Sichuan and Chongqing are light manufacturing (+ 2.17%), comprehensive (+ 2.34%) and architectural decoration (+ 1.89%).
Sichuan Province held the fifth session of the 13th people’s Congress, at which it was proposed to continue to implement the planning outline for the construction of Chengdu Chongqing dual city economic circle and key special plans. In terms of infrastructure construction, it accurately connects the investment direction of national policies, actively strives for more project financial support, strengthens the construction of “two new and one heavy” projects, speeds up the construction of major projects such as Sichuan Tibet railway, Chengdu Chengdu Wanzhou high-speed railway and Chengdu Chongqing middle line high-speed railway, completes the preliminary work of water conservancy project from the university to the people, speeds up the project implementation, and moderately carries out infrastructure investment in advance. In terms of transportation, accelerate the construction of Chengdu Chongqing middle line high-speed railway and other projects. Accelerate the construction of Sichuan International aviation hub, optimize the international route network, and expand the intercontinental 10 hour and Asian 5-hour voyage circle efficiently connected with major passenger and freight transportation hubs in the world. Introduce and cultivate base freight airlines and large express logistics enterprises to build intercontinental air transit center and international air freight distribution center. Major construction projects in Sichuan and Chongqing are progressing smoothly. With the continuous promotion of the construction of Chengdu Chongqing dual city economic circle, it is expected that a large number of construction projects will start one after another this year, continuously releasing a large number of infrastructure needs and helping relevant enterprises maintain rapid growth in performance. At the same time, the smooth air and land transportation channels will also promote the growth of logistics expansion in Sichuan and Chongqing and benefit the growth of relevant enterprises in the region.
Industry dynamics
According to the data of the National Bureau of statistics, the economy of Sichuan and Chongqing maintained good growth in 2021. Among them, the GDP of Sichuan Province reached 5.38 trillion yuan, a year-on-year increase of 8.2%, and the GDP of Chongqing reached 2.78 trillion yuan, a year-on-year increase of 8.3%. (China News Network)
Company dynamics
Sichuan Injet Electric Co.Ltd(300820) (300820): release the performance forecast for 2021. In 2021, the company is expected to realize a net profit of 152-183 million yuan attributable to the shareholders of the listed company, with a year-on-year increase of 44.98% – 74.93%. Sichuan Road & Bridge Co.Ltd(600039) (600039): the announcement on the advance increase of annual performance in 2021 is issued. It is expected that the net profit attributable to the shareholders of the listed company in 2021 will increase by 2.007 billion yuan compared with the same period of the previous year, an increase of 66.34% year-on-year.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
