Light industry in 2018 mid-third quarter report summary: home paper growth slowed down, packaging

In the first three quarters of 2018, 124 enterprises in the A-share light industry sector (Shenwan classification) achieved A total revenue of 353.6 billion yuan, up 17% year on year, and realized net profit of 26.2 billion yuan, up 5% year on year. The growth rate of revenue and profit was slightly slower than that of the first half of the year, and the overall performance was slightly lower than our expectation. We suggest home selected stocks, paper plate long-term bullish leading edge, packaging bullish fundamentals marginal improvement market.

Home furnishing: Operating pressure increased, profitability maintained stable
Since this year, under the downward trend of real estate boom, the household business pressure gradually appeared. In the first three quarters, the household segment achieved a total revenue of 66.1 billion yuan, up 17% year on year; Net income attributable to parent was 6.2 billion yuan, up 6 percent year on year. The selected 13 representative household enterprises' 18Q1/Q2/Q3 revenue growth rate is 35%/24%/22%, respectively, and the net profit growth rate is 26%/25%/16%, respectively. The third quarter benefited from the correction of raw material prices and other factors, Q3 quarterly gross margin increased by 0.8 PCT year-on-year to 39.7%. In the first three quarters of this year, the average net operating cash flow of representative household enterprises as a percentage of revenue fell 7.74 PCT year-on-year to 4.9 percent. From the perspective of institutional holdings, the market worries about the real estate industry chain intensified. In the third quarter, the public offering fund holdings in the household light industry sector declined 0.12 PCT quarter-on-quarter to 0.78%, and the proportion of industry overallocation fell to 0.14%.
Paper: Peak season demand less than expected, Q3 performance slipped slightly
In the first three quarters of 2018, the revenue of paper industry reached 107.9 billion yuan, up 17% year on year; Net profit attributable to its parent reached 10 billion yuan, up 14% year on year. Third quarter peak season demand is less than expected, finished paper price correction, at the same time raw material prices high shock, Q3 quarter plate revenue growth fell to 7%, net profit