The company’s core focus and IPO offering and Investment: (1) the company is a leading Chinese PCB equipment manufacturer with outstanding technical advantages, leading the industry in the number of patents, benchmarking its products with foreign cutting-edge technology products, and covering China’s mainstream PCB factories in the downstream. The rapid development of electronic information industry drives the upgrading of PCB industry. Under the process of PCB production capacity transfer to China and domestic substitution of PCB equipment, the company is expected to make long-term profits. (2) The company’s shares issued to the public this time shall not exceed 42 million shares, and the total share capital after issuance shall not exceed 420 million shares. The number of shares issued to the public accounts for no less than 10% of the total share capital of the company after this public offering. The raised funds are conducive to expanding the company’s business scale, breaking through the bottleneck of production capacity, improving the company’s R & D strength and enhancing the company’s competitive advantage.
Steel:
The total output of the five varieties of steel was + 0.34% month on month and – 12.68% year on year; The total of social Treasury and factory Treasury was + 10.99% month on month, with a year-on-year increase of – 4.47%; Steel price index + 0.32% month on month; The decline in gross profit of the four major steel varieties narrowed month on month. The rise of raw materials and profit are under pressure. During the Winter Olympic Games, production in North China is strictly limited, and the demand side belongs to the traditional off-season. The demand may be improved under the post holiday stable economic policy. In the long run, we need to pay attention to the field of growth special steel.
Industrial metals:
The current price of LME copper / the current price of Yangtze nonferrous copper this week was – 2.93% / – 1.00% month on month; LME aluminum current price / Changjiang nonferrous aluminum current price month on month + 0.99% / + 1.41%. Copper: the hawks of the Federal Reserve expressed negative attitude towards copper price. Considering the dual factors of foreign interest rate hike expectation and China’s stable economy, copper price may remain volatile. Aluminum: in the short term, the foreign energy crisis is superimposed, and the supply of China’s Winter Olympic Games is limited; The demand side is supported by stable economic expectations, and the profitability continues to improve under the benefit of raw materials.
New energy metals:
In terms of lithium, the price of lithium carbonate / lithium hydroxide this week was + 3.24% / + 5.28% month on month. The supply and demand of lithium continues to be tight, and the price of lithium continues to rise under the demand for pre holiday goods preparation. Considering the poor situation of downstream pre holiday goods preparation and the resilience of post holiday demand, the price center of lithium is expected to rise steadily.
Rare earth:
The price of praseodymium and neodymium oxide / dysprosium oxide / terbium oxide this week was + 3.52% / + 2.36% / + 7.48% month on month. The market is pessimistic about the opening of the China Myanmar border in the first quarter, and the price center is expected to rise after the commencement of the festival. Under the framework of energy-saving motors and new energy, the demand for magnetic materials is gradually opened, and the industry boom is optimistic for a long time.
Investment advice
It is suggested to pay attention to Zhejiang Yongjin Metal Technology Co.Ltd(603995) (603995), Yongxing Special Materials Technology Co.Ltd(002756) (002756). For industrial metals, it is recommended to pay attention to Guangdong Jiayuan Technology Co.Ltd(688388) (688388), Shandong Nanshan Aluminium Co.Ltd(600219) (600219). It is suggested to focus on Ganfeng Lithium Co.Ltd(002460) (002460), Tianqi Lithium Corporation(002466) (002466), Qinghai Salt Lake Industry Co.Ltd(000792) (000792). It is suggested to pay attention to China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) (600111), China Minmetals Rare Earth Co.Ltd(000831) (000831).
Risk tips
The risk of price fluctuation of raw materials, the risk that downstream demand is lower than expected, and the risk that covid-19 epidemic spread is higher than expected.
