Follow up comments
On January 19, 2022, the Shanghai Composite Index closed at 3558.18 points, down 0.33%; The Shenzhen Component Index closed at 14207.19 points, down 1.28%. The Chongqing composite index, which we focus on, closed at 3731.33 points, down 1.07%; Sichuan composite index closed at 9275.38 points, down 1.48%. The top three stocks of Listed Companies in Sichuan and Chongqing are: Sichuan Xun You Network Technology Co.Ltd(300467) (300467, 20.02%), Chengdu B-Ray Media Co.Ltd(600880) (600880, 9.95%), Yimikang Tech.Group.Co.Ltd(300249) (300249, 5.34%). The 42 companies we focused on fell by an average of 0.84%, of which the top three stocks were: Jinke Property Group Co.Ltd(000656) (000656, 3.46%), Chengdu Haoneng Technology Co.Ltd(603809) (603809, 3.05%), Sichuan Huati Lighting Technology Co.Ltd(603679) (603679, 2.76%). By industry, the top three sectors in Sichuan and Chongqing are media (+ 5.55%), textile and garment (+ 3.37%) and steel (+ 1.41%). On January 18, the national development and Reform Commission announced that the national development and Reform Commission, together with the central network and information office, the Ministry of industry and information technology and the national energy administration, has approved and agreed to start the construction of national hub nodes in Inner Mongolia, Guizhou, Gansu and Ningxia. At the same time, it is cooperating with relevant departments to deeply demonstrate the construction schemes of four nodes, such as Beijing Tianjin Hebei, Yangtze River Delta, Guangdong Hong Kong Macao Dawan district and Chengdu Chongqing. Digitization is the next stage of transformation and upgrading of China’s industries. The policies of the 14th five year plan clearly will rapidly promote the digital transformation of agriculture, manufacturing and service industries, followed by the continuous increase of the total amount of data and the significant increase of data computing demand. Data center is one of the important infrastructures to realize the digital transformation of industry. During the “14th five year plan” period, the substantial increase in the demand for data storage will drive the rapid growth of the market scale of data center. At present, China’s data center industry has entered a period of rapid development. With the promotion of digital transformation of various industries, the size of the data center market will be further expanded, the future development space of enterprises in the industry will be large, and the performance will maintain rapid growth. Computer and electronic communication industry is one of the core industries in Chengdu and Chongqing. In recent years, the industrial scale has maintained rapid growth, and the demand for regional data storage has been increasing. At the same time, Sichuan is rich in hydropower resources and low electricity price, which has cost advantages for the data center industry. It will become one of the eight key nodes in the implementation plan, It is expected that enterprises related to data center industry in Sichuan and Chongqing will achieve rapid development in the future.
Industry dynamics
The people’s Bank of Sichuan and Chongqing and the foreign exchange administration jointly issued the guidance on financial support for the development of cross provincial demonstration areas in the adjacent areas of Sichuan and Chongqing, requiring all financial institutions to base themselves on 6 major fields and do a good job in 22 aspects of financial services. (China News Network)
Company dynamics
Andon Health Co.Ltd(002432) (002432): release the performance forecast for 2021. In 2021, the company is expected to realize a net profit of 900-1.2 billion yuan attributable to shareholders of listed companies, with a year-on-year increase of 271.40% – 395.19%.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
