Key investment points:
Investment suggestions: 1) complete vehicles and parts: in December 2021, China’s automobile sales volume was 2.786 million, with a year-on-year increase of – 1.6%. In 2021, the annual automobile sales volume was 26.275 million, with a year-on-year increase of 3.8%. With the gradual easing of the shortage of automobile chips and the Spring Festival Promotion, it is expected that the automobile production and sales volume will further increase in the first quarter of 2022. It is suggested to pay attention to independent brands. The automotive industry is in the midst of industrial transformation, in which self driving new energy is expected to become the main theme. It is expected that the penetration of intelligent vehicles is expected to accelerate in 2022. It is suggested to focus on suppliers of intelligent core parts such as intelligent driving and intelligent cockpit. 2) New energy vehicles: in January 2022, the new forces of car building achieved a good start, of which 12922 Xiaopeng vehicles were delivered, 115% year-on-year and – 19.2% month on month; 12268 units are expected to be delivered, 128.1% year-on-year and – 12.9% month on month; Nezha delivered 11009 vehicles, 402% year-on-year and 8.7% month on month; Weilai delivered 9652 vehicles, 33.6% year-on-year and – 8.0% month on month. It is expected that the overall sales volume of new energy vehicle market in January will be better than the market expectation. We believe that under the continuous improvement of new energy vehicle product power and the rich superimposed industrial scale effect of high-quality vehicle supply, the new energy vehicle industry is expected to continue to develop well, and the rise of some raw material prices will be transmitted to the terminal price increase, It is suggested to focus on the improvement of volume and profit in the new energy vehicle industry chain.
Market review: from January 24 to January 28, the auto (Shenwan) industry index fell 6.06% in the week before the Spring Festival, 1.55 percentage points lower than the CSI 300 index. Among them, passenger cars – 7.90%, commercial vehicles – 5.01% and auto parts – 5.24%. The wind new energy vehicle index fell 4.52%, 0.01 percentage points lower than the CSI 300 index. Among them, power battery – 2.75%, lithium positive electrode – 1.82%, lithium negative electrode – 0.77%, lithium diaphragm – 3.99%, electrolyte – 2.48%..
Industry trends: 1) Faw Jiefang Group Co.Ltd(000800) and Contemporary Amperex Technology Co.Limited(300750) signed a power battery supply and demand linkage agreement; 2) In January, the sales volume of new forces of car making performed well; 3) , GM and LG new energy plan to jointly establish a fourth battery factory.
Company dynamics: 1) Zhejiang Asia-Pacific Mechanical & Electronic Co.Ltd(002284) : Announcement on receiving supplier Nomination Letter; 2) , Byd Company Limited(002594) : production and marketing express in January 2022; 3) , Zhejiang Huayou Cobalt Co.Ltd(603799) : Announcement on joint foreign investment and related party transactions with related parties; 4) , Nuode Investment Co.Ltd(600110) : 2021 annual performance forecast..
Risk factors: the sales volume of vehicles is lower than expected, the sales volume of new energy vehicles is lower than expected, and the policy is lower than expected.
