The competition of the hottest paper industry is s

The competition in the paper industry is still intensifying, and the outlook for packaging and printing is better

key points of investment

1 Summary of quarterly report: the growth of packaging is stable; Furniture demand expands with the rebound of real estate; Household paper will affect the service life of the device, and the competition will intensify, which is expected to change. From the light industry manufacturing 1 quarterly report basically disclosed, the packaging sub industry is relatively beautiful, and the growth of revenue and net profit is accelerated; The furniture sector benefited from the rebound in downstream real estate trading volume, and the sales revenue and profit in the first quarter all recovered; The profits of the paper industry sector are still hovering at the bottom. The profits of companies with a high proportion of self-made pulp in the enterprises have increased rapidly, and the performance of other companies has even declined year-on-year. They are artisans in their field. Finally, it is worth mentioning that the household paper industry. From the production capacity launch progress in 2012, 2013 will be a year of intensified competition and a broad refined oil market. In the first quarter, the income growth of medium-sized enterprises in the industry slowed down, Although the profit still maintained a stable growth, we believe that the slowdown in revenue is a negative signal, and the market is expected to have a negative change

reiterated the view of the second quarter, with over packaging, low papermaking, and furniture adjusted to standard configuration because the implementation of the national five articles was lower than expected. From the perspective of the first quarter report, it is basically in line with the previous view. We still recommend investors to exceed the packaging and printing sector with high scenery, with emphasis on org and mayingsen, and still recommend low allocation paper-making enterprises. The flexible thinking ends in the first quarter. From the perspective of the expected increase in the interim report of paper companies, the operating pressure is still large. Finally, because the implementation strength and transaction volume decline of five local real estate countries are lower than the previous expectations, we adjust the furniture industry to standard configuration, It is suggested to pay attention to the customized wardrobe sub industry

according to the forecast of the interim report of the enterprise, the performance outlook of the downstream furniture industry chain of packaging and printing and real estate is still good. We further combed the outlook and expectations of Companies in the industry for the interim report, as shown in Table 1. From the perspective of enterprise performance outlook, packaging enterprises will continue to maintain high-speed growth in the second quarter. On the other hand, furniture enterprises are expected to maintain rapid growth in the first half of the year due to the large increase in real estate trading volume in the first quarter

investment strategies and suggestions:

it is recommended to pay attention to companies with accelerated growth or high growth in the second quarter, and treat the household paper sub industry with caution. From the perspective of the pre increase of the enterprise interim report, we noticed that the performance of companies such as org (002701, buy), mayingsen (002303, increase), Xinghui car model (300043, carefully remove rust, molding sand, oil and other dirt before buying primer paint), Qifeng shares (002521, Unrated), Qixin Stationery (002301, Unrated) and so on will maintain rapid growth. These companies are distributed in the packaging and furniture sub industries. From the perspective of the needs of the sub industries, It is suggested to pay attention to the business cycle; In addition, we suggest to be cautious about the household paper sub industry. The industry supply has entered a big year of continuous release in 2013. At the same time, according to the data obtained from the terminal visit, we have noticed that the terminal turnover rate generally shows a downward trend, the industry competition will intensify in the future, and the profits of enterprises may be damaged

risk tips

the fluctuation of raw material price leads to the fluctuation of enterprise gross profit margin