Market review in February
In February, the machinery industry (CITIC classification) index rose 1.36%, outperforming Shanghai and Shenzhen 300 by 0.97 points. TTM P / E ratio / P / B ratio of machinery industry is about 22.86/2.47 times. In terms of subdivided industries, each sub industry shows a general upward trend, and the increase of oil and gas equipment and environmental protection equipment is higher.
Special topic of this month: performance forecast and Prospect of machinery industry in 2021
68% have disclosed that the company’s performance has increased in advance, and the industry has accelerated its recovery after the epidemic. As of February 28, 2022, of the 550 companies in Shenwan and CITIC machinery sector, 268 companies have disclosed the performance forecast (express report) for 2021, of which 182 companies have achieved the performance pre increase (including pre increase, loss reversal, continued profit and pre increase), accounting for 67.91%; 86 companies’ performance pre reduction (including pre reduction, continued loss, first loss and slight reduction), accounting for 32.09%. Companies that we continue to focus on, such as Centre Testing International Group Co.Ltd(300012) , Shanghai Friendess Electronic Technology Corporation Limited(688188) , Leader Harmonious Drive Systems Co.Ltd(688017) , Shanghai Hanbell Precise Machinery Co.Ltd(002158) , Guangdong Yizumi Precision Machinery Co.Ltd(300415) , Iray Technology Company Limited(688301) , North Industries Group Red Arrow Co.Ltd(000519) , have achieved good growth.
Industry key recommended portfolio
Key combination: Centre Testing International Group Co.Ltd(300012) , Guangzhou Grg Metrology&Test Co.Ltd(002967) Opt Machine Vision Tech Co.Ltd(688686) Shanghai Friendess Electronic Technology Corporation Limited(688188) Jiangsu Hengli Hydraulic Co.Ltd(601100) Leader Harmonious Drive Systems Co.Ltd(688017) Iray Technology Company Limited(688301) Shanghai Hanbell Precise Machinery Co.Ltd(002158) Jiangsu Guomao Reducer Co.Ltd(603915) Dongguan Yiheda Automation Co.Ltd(301029) ； Zhejiang Dingli Machinery Co.Ltd(603338) ； Shenzhen United Winners Laser Co.Ltd(688518) Zhejiang Hangke Technology Incorporated Company(688006) ； Henan Huanghe Whirlwind Co.Ltd(600172) North Industries Group Red Arrow Co.Ltd(000519) 。 The “small and beautiful” combination: the combination of “small and beauty” combines the combination of “small and beauty” with the combination of the combination of the little and beauty: the combination of the combination of the following: combiningthe combination of the little and beauty: “the combination of the little and beauty: the combination of the combination of the little and the beauty: the combination of the little and the beauty of the” little and the beauty of the small: the combination of the combination of the combination of the combination of the combination: Sf Diamond Co.Ltd(300179) Sf Diamond Co.Ltd(300179) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\, Guangdong Yizumi Precision Machinery Co.Ltd(300415) , Jiangsu Shentong Valve Co.Ltd(002438) . Key recommendations in March: North Industries Group Red Arrow Co.Ltd(000519) , Centre Testing International Group Co.Ltd(300012) , Iray Technology Company Limited(688301) .
Industry perspective: focus on the leading companies with high medium and long-term winning probability of high-quality track. Considering the industry track, company competitiveness and valuation level, we are optimistic about: 1) continue to grasp the leading companies that are expected to cross the cycle in the medium and long term of high-quality track, such as core parts companies, some product companies and testing service companies; 2) Tap high-quality leading companies or highly elastic undervalued targets in high growth and fine molecule industries, such as diamond cultivation, photovoltaic / lithium battery / wind power / industrial automation, etc.
1) testing service industry with good business model and large growth space: focus on Centre Testing International Group Co.Ltd(300012) , Guangzhou Grg Metrology&Test Co.Ltd(002967) , Suzhou Sushi Testing Group Co.Ltd(300416) , Emtek (Shenzhen) Co.Ltd(300938) , and pay attention to China National Electric Apparatus Research Institute Co.Ltd(688128) , China Building Material Test & Certification Group Co.Ltd(603060) , Suzhou Electrical Apparatus Science Academy Co.Ltd(300215) .
2) upstream core parts companies in growth stage or with high vision: recommend Opt Machine Vision Tech Co.Ltd(688686) , Shanghai Hanbell Precise Machinery Co.Ltd(002158) , Jiangsu Hengli Hydraulic Co.Ltd(601100) , Shanghai Friendess Electronic Technology Corporation Limited(688188) , Leader Harmonious Drive Systems Co.Ltd(688017) , Iray Technology Company Limited(688301) , Jiangsu Guomao Reducer Co.Ltd(603915) , Dongguan Yiheda Automation Co.Ltd(301029) .
3) high profile product companies: recommend North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , Shanghai Kelai Mechatronics Engineering Co.Ltd(603960) .
4) special / general equipment industry with high prosperity: focus on Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Shenzhen United Winners Laser Co.Ltd(688518) , Zhejiang Hangke Technology Incorporated Company(688006) , etc.
Risk tips: macroeconomic downturn, rising prices of raw materials, sharp fluctuations in exchange rate and repeated impact of the epidemic.
