Follow up comments
On January 25, 2022, the Shanghai Composite Index closed at 3433.06 points, down 2.58%; The Shenzhen composite index closed at 13683.89 points, down 2.83%. The Chongqing composite index, which we focus on, closed at 3579.48 points, down 2.33%; Sichuan composite index closed at 8957.20 points, down 3.19%. The top three stocks of Listed Companies in Sichuan and Chongqing are: visualisation Technology (301213, 20.00%), Sichuan Jinlu Group Co.Ltd(000510) (000510, 9.93%), Senci Electric Machinery Co.Ltd(603109) (603109, 6.28%). The 42 companies we focused on fell by an average of 3.18%, of which the top three stocks were: Sichuan Jinlu Group Co.Ltd(000510) (000510, 9.93%), Chongqing Fuling Zhacai Group Co.Ltd(002507) (002507, 2.26%), Chengdu Guibao Science & Technology Co.Ltd(300019) (300019, – 0.63%). By industry, the top three sectors in Sichuan and Chongqing were leisure services (- 1.51%), banks (- 2.27%) and food and beverage (- 2.46%).
According to the data released by Sichuan Provincial Department of housing and urban rural development, the total output value of construction industry in Sichuan Province was 1.73 trillion yuan in 2021, an increase of 11.1% year-on-year. Among them, prefabricated buildings and green buildings have achieved rapid development. In 2021, the province launched a five-year action to improve the development quality of prefabricated buildings, added 7 provincial prefabricated construction industry bases, and started 56 million square meters of prefabricated buildings. At the same time, by improving the green building identification management system, Sichuan urban civil buildings fully implement the green building standards, and 150 million square meters of new green buildings, accounting for more than 70%. At the same time, the transformation of old cities in the province has been carried out smoothly. In 2021, 6245 old urban communities and 559000 households in the province have been newly started to transform, striving for a central fund of 7.541 billion yuan, ranking first in the country, and 5769 communities have been transformed in total. During the “14th five year plan” period, Sichuan and Chongqing will vigorously promote the construction of green cities, further promote the process of urbanization and complete the transformation of old communities. It is expected to continue to release a lot of demand for the construction industry in Sichuan and Chongqing. It is suggested to pay attention to the head construction related enterprises in Sichuan and Chongqing for the layout of prefabricated buildings, green environmental protection materials and other businesses.
Industry dynamics
According to the data released by Chongqing Municipal Commission of Commerce, in the first, second, third and fourth quarters of 2021, Chongqing’s import and export were 180.43 billion yuan, 19.61 billion yuan, 2004.1 billion yuan and 223.12 billion yuan respectively, showing a quarterly expansion trend. The scale of import and export, export and import reached a record high throughout the year, with a total import and export volume of 800.06 billion yuan, an increase of 22.8%. (China News Network)
Company dynamics
Sichuan Jiuzhou Electronic Co.Ltd(000801) (000801): release the performance forecast for 2021. In 2021, the company is expected to realize a net profit of 130-150 million yuan attributable to shareholders of listed companies, with a year-on-year increase of 69.29% – 95.33%.
Guoguang Electric Co.Ltd.Chengdu(688776) (000656): release the performance forecast for 2021. In 2021, the company is expected to realize a net profit of 155-175 million yuan attributable to shareholders of listed companies, with a year-on-year increase of 62.46% – 83.42%.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
