Key investment points:
New every Monday: continue to focus on recommending oil service.
Global oil and gas investment is expected to bottom out in 2022, and the current round of recovery under carbon neutralization pressure will be structurally differentiated. The international oil price has remained above $65 before the outbreak for more than a year. Recently, stimulated by factors such as the lower than expected actual increase of OPEC +, the oil price of oil distribution and WTI have both exceeded $90 and are continuing to reach a new high since 2014. The scissors gap between supply and demand superimposed by high oil prices continues to expand. We believe that oil prices are expected to remain at a medium high level in the next three years, and the upward trend of the three-year boom of the oil service industry has started in this round. The difference of this cycle is that the requirements of carbon neutralization are making the global energy pattern face a new round of in-depth adjustment. Oil and gas projects with low cost, short return cycle and low-carbon and environmental protection, such as land in the Middle East, deep water in Brazil and shale oil and gas in North America, will be more favored by capital. Chinese oil service enterprises have significant advantages such as higher cost performance and shorter delivery cycle. With the significant increase of ESG pressure in the oil and gas industry, we judge that Chinese excellent oil service enterprises will benefit more from this round of recovery.
Chinese oil service companies are expected to fully benefit from the recovery of the oil and gas industry and the transfer of the global industrial chain to China. Key recommendation [ Nanjing Develop Advanced Manufacturing Co.Ltd(688377) ]: the world’s leading deep-sea forging enterprise has deeply benefited from the transfer of the deep-sea industrial chain to China, and its operation target sea area is mainly Brazil, which is one of the regions with the largest oil and gas capital expenditure in the world. Recommendation [ China Oilfield Services Limited(601808) ]: CNOOC’s largest offshore oil service leader has deeply benefited from the rise in oil prices and the recovery of oil and gas capital expenditure. Recommendation [ Yantai Jereh Oilfield Services Group Co.Ltd(002353) ]: the world’s leading fracturing equipment, China’s energy supply + global competitiveness, and a broad market for new fracturing equipment.
Industry and company trends this week: 1) photovoltaic equipment: the prices of silicon materials, silicon wafers and battery chips have risen, Suzhou Maxwell Technologies Co.Ltd(300751) issued a repurchase plan; 2) Lithium battery equipment: eurocell, an Anglo Korean joint venture, plans to invest 5.1 billion yuan to build a super battery factory in Western Europe; 3) Oil service: OPEC expects a sharp decline in oil inventories and strong growth in global demand; 4) Laser and general automation: Ruike basically equaled the market share of IPG in China’s fiber laser in 2021, and the policy of maintaining supply and stabilizing price was strongly promoted in January with PPI of – 0.2% month on month; 5) X-ray detector: Careray Digital Medical Technology Co.Ltd(688607) it is planned to invest no more than 15 million US dollars to promote the layout of globalization; 6) Semiconductor equipment: this week, Huahong Wuxi bid opened 26 process equipment, and shengmei semiconductor won the bid for 6 cleaning equipment.
The core target of this week’s portfolio: it is recommended to focus on the growth track with high prosperity and the investment opportunities in the cyclical sector with high elasticity and upward inflection point. Oil service sector recommends [ Nanjing Develop Advanced Manufacturing Co.Ltd(688377) ], [ China Oilfield Services Limited(601808) ], [ Yantai Jereh Oilfield Services Group Co.Ltd(002353) ], lithium battery equipment sector recommends [ Zhejiang Hangke Technology Incorporated Company(688006) ], [ Wuxi Lead Intelligent Equipment Co.Ltd(300450) ], photovoltaic equipment recommends [ Wuxi Autowell Technology Co.Ltd(688516) ], [ Wuhan Dr Laser Technology Corp.Ltd(300776) ], and general automation recommends [ Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) ], [ Shenzhen Inovance Technology Co.Ltd(300124) ], The ship sector is recommended to pay attention to [ China Cssc Holdings Limited(600150) ].
Risk tips: 1. The production expansion progress of the main engine plant is less than expected; 2. Product and technology iteration update risk; 3. The business growth of the recommended company is less than expected.
