Key investment points:
Market review: as of February 18, 2022, Shenwan auto sector rose 2.12% in the week, outperforming the CSI 300 index by 1.04 percentage points and ranking 14th among Shenwan 31 industries. Among the five sub sectors of Shenwan automobile industry, only the commercial vehicle sector fell, while the rest rose. The specific performance is as follows: the passenger car sector rose 3.16%, the automobile service sector rose 2.25%, the motorcycle and other sectors rose 1.93%, the auto parts sector rose 1.85%, and the commercial vehicle sector fell 0.41%. The top three companies with weekly growth were Dalian Demaishi Precision Technology Co.Ltd(301007) , Zhuhai Enpower Electric Co.Ltd(300681) , Lizhong Sitong Light Alloys Group Co.Ltd(300428) , up 23.19%, 18.32% and 18.05% respectively. The top three companies with weekly declines were Shenzhen Roadrover Technology Co.Ltd(002813) , No. 9 company WD and Senci Electric Machinery Co.Ltd(603109) , with declines of 8.30%, 7.64% and 6.82% respectively. In terms of valuation, as of February 18, the pettm of Shenwan automobile sector was 28 times, at the quantile of 75.29% in recent five years and 86.13% in recent ten years; In terms of sub sectors, the pettm of automobile service sector is 18 times, that of auto parts sector is 26 times, that of passenger car sector is 34 times, and that of commercial vehicle sector is 21 times.
Key industrial news: 1. China Automobile Association: in January, the production and sales of automobiles were 2.422 million and 2.531 million respectively, down 16.7% and 9.2% month on month, with a year-on-year increase of 1.4% and 0.9% respectively. 2. China Automobile Association: in January, 452000 and 431000 new energy vehicles were produced and sold respectively, with a year-on-year increase of 1.3 times and 1.4 times respectively. In terms of market share, in January, the market share of new energy vehicles reached 17%, and the market share of new energy passenger vehicles reached 19.2%.
Auto industry weekly view: the auto sector rebounded as a whole this week. China Automobile Association released the automobile production and sales data in January. The overall automobile production and sales increased slightly year-on-year and declined month on month. Due to the influence of the Spring Festival, it is in line with expectations. In terms of new energy vehicles, the production and sales volume continued the trend of rapid development, and the market penetration continued to rise. Local governments have actively introduced policies related to steady growth to support relatively stable market demand. The supply of superimposed chips continues to improve, the overall production and sales of the automobile market shows a warming trend, and the Q1 automobile production and sales data is expected to achieve moderate growth. At present, the demand for repair parts will continue to be low, and the inventory of dealers will continue to be replenished. It is suggested to focus on global competitiveness, actively transform to electric intelligence, and benefit from the elasticity of demand replenishment after improved chip supply: Huayu Automotive Systems Company Limited(600741) (600741), Ningbo Tuopu Group Co.Ltd(601689) (601689), Bethel Automotive Safety Systems Co.Ltd(603596) (603596), Anhui Zhongding Sealing Parts Co.Ltd(000887) (000887), Fawer Automotive Parts Limited Company(000030) (000030), Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) (603035).
Risk tips: the improvement of chip supply is less than expected, the production and sales of cars are less than expected, the iteration of new technology reform, the sharp fluctuation of raw material prices, the intensification of market competition, the safety risk of electric vehicles, etc.
