May stock market: packaging and printing sector performed best

In May 2013, the light industry sector outperformed the market: in May 2013, the light industry sector rose 10.19%, outperforming the market by 5.55 percentage points. The trend of each sub-section was stronger than the broader market. Among them, packaging and printing and other household light industry performed well, up 14.55% and 11.95% respectively. The increase in entertainment, paper and furniture was small, up 10.11%, 8.39% and 7.86% respectively. The light industry sector has risen 18.59% since the beginning of 2013, leading the market by 18.84 percentage points.

Paper packaging companies' performance growth has been highlighted, and plastic packaging recovery has been weak: paper packaging and metal packaging companies have shown outstanding performance since the beginning of the year, mainly due to the strong warming momentum of downstream home appliances, IT electronics, beer, beverages, etc.; The price of paper grades showed a slight decline, with an average decline of around 0.7%. The year-to-date average price fell by about 10% year-on-year, and the low cost remained locked. Plastic packaging was slightly weak, and downstream food, cosmetics and pharmaceuticals showed a weak recovery. The output growth in May was about 10%, while the cost of plastic pellets and film increased by 4% to 5% year-on-year, 3 to 4 Although the month has been adjusted back due to the drop in oil prices, it is expected that there will be no obvious cost advantage in the whole year.

Lottery sales rebounded and benefited lottery printing enterprises: Traditional printing experienced a slowdown in March-April after a period of high growth in January and February, and continued to change its downturn in May. Cigarettes continued to be sluggish. The cumulative output in May decreased by 0.25% year-on-year, and no growth was achieved. The lottery sales were better, and the growth rate rebounded month by month. In May, the cumulative growth was 16.31%, which was beneficial to the relevant lottery printing enterprises (Hongbo shares, Donggang shares).

Recommended Donggang shares, Xinghui model, Origen, Meiyingsen: Recently, the focus on the smart card business and the valuation of safety margins of Donggang shares and downstream demand growth to better performance growth rate of the United States. In the whole year, around the main line of growth, we recommend the brand and the sub-sectors and the company's excellent growth of Xinghui models; the high-income Origen with high revenues; the production capacity into the release cycle of Meiyingsen.

Risk warning: 1. The macroeconomic recovery is lower than expected; 2. The export continues to be sluggish

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