Main points
Papermaking:
The paper sector showed a downward trend this week. In terms of cultural paper, paper enterprises have a strong willingness to raise prices, but the market demand continues to be weak. Due to the influence of news factors, the price of pulp continues to be high. In the long run, the price will return to the equilibrium level determined by supply and demand, with limited impact on the profits of paper enterprises. In terms of waste paper system, the poor market demand superimposed the pressure of destocking, and the price increase plan of leading paper enterprises was cancelled. Recently, the price of domestic waste paper was generally reduced, and the price of box board and corrugated paper fell slightly month on month. Recommendations: Shandong Sun Paper Co.Ltd(002078) , Shandong Bohui Paper Industry Co.Ltd(600966) , Shanying International Holdings Co.Ltd(600567) .
Home:
The furniture sector fell after rising this week. Recently, the National Conference on housing and Urban-Rural Construction released a positive signal that the supply of affordable rental housing will be greatly increased in 2022, and urban renewal and rural construction actions will be implemented; On the other hand, the central bank also said recently that it would actively respond to market concerns and put monetary policy in front to avoid credit collapse. The real estate policy and credit are in a marginal loose state, the valuation of the furniture sector continues to be repaired, and it is optimistic about the home industry in the medium and long term. Recommended: Jason Furniture (Hangzhou) Co.Ltd(603816) , Oppein Home Group Inc(603833) , Minhua holdings.
Other light industries:
This week, the cultural and entertainment light industry sector showed a downward trend. The growth rate of stationery industry slowed down due to factors such as the slowdown of birth rate and the decrease of enrollment. In order to cope with the decline of the industry, stationery manufacturers actively innovate in marketing, design and other fields, launch all kinds of IP co branded stationery and seasonal limited stationery, and then launch “stationery blind box”, which meets the personalized expression and social needs of students and further improves the market heat. Such high-quality cultural and creative products have a high premium and are easy to sell hot products, which can effectively improve the selling price and gross profit margin of stationery. It is the development direction of stationery industry in the future. Recommendation: Shanghai M&G Stationery Inc(603899) .
Market performance this week:
This week, the CITIC light industry manufacturing industry index fell 2.19% compared with last week, and the CSI 300 rose 1.11%. The light industry manufacturing sector as a whole lost 3.30 percentage points to the CSI 300 index. Among the secondary industries of CITIC light industry manufacturing this week, papermaking fell 0.79%, packaging and printing fell 4.72%, household rose 0.23%, entertainment light industry fell 4.22% and other light industries fell 4.44%.
Investment advice
It is suggested to pay attention to Shandong Sun Paper Co.Ltd(002078) , Shandong Bohui Paper Industry Co.Ltd(600966) , Shanying International Holdings Co.Ltd(600567) in the paper sector, Jason Furniture (Hangzhou) Co.Ltd(603816) , Oppein Home Group Inc(603833) and Minhua holdings in the home sector, and Shanghai M&G Stationery Inc(603899) in the entertainment sector.
Risk tips
Policy risk, price fluctuation risk of raw materials and sluggish downstream demand
