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October packaging and printing industry downstream demand are signs of improvement

October light plate outperform: in October, light industrial stocks rose 0. 23%, outperform the market. 13%. The performance is better packaging and printing plate, the month up to 2. 69%, and the furniture sector performance is poorer, or 2 month. 35%. Taken together, since the beginning of light industry sector or is still less than the market. Packing downstream demand improved modestly: corrugated carton production rose 13% in September, the upstream paper prices unchanged, the downstream electrical appliances production rebounded, year-on-year growth of 13. 6%, and consumer electronics production decline narrowed and liquor yield increased 1. 9%; Plastic packaging materials prices callback, again a fall of 1% in October - 2%, cosmetics, daily necessities downstream consumption rose 19% in September, beverage production, but drug production rose 10. 8%, rose significantly improved. Printing industry stable performance: 1 - August printing industry as a whole benefits, income profit growth, including cigarette label printing increase obviously, and highly profitable remained stable. Upstream record-keeping fell slightly, September print production growth, including cigarette grew 2%, flat; The lottery sales rose 4 September. 4%, the growth rate decline. Keep packing, the printing industry 'recommended' rating: the first three quarters of this year, light industries, In addition to the paper) Revenue was 92. 5 billion yuan, up 22%; Net profit of 4. 6 billion yuan, down 12% year-on-year by narrow. Among them, the packaging industry to the downstream, the downstream demand stable food, cosmetics packaging is remarkable. And smooth printing industry as a whole, big span between subsectors, cigarette smoke standard class printing, strong cyclical, smooth growth. Maintain packaging and printing industry 'recommended' rating. Bullish on plastic packaging industry leading yunghsin shares: yunghsin shares benefited from the downstream demand sustained, rapid growth, and on the upstream and downstream have stronger bargaining power, suggest to focus on. Risk warning: 1) Raw material price fluctuations; ( 2) Downstream demand slowdown

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