Core view
[market performance] last Friday, the CSI 300 index closed at 5055.1, up 3.3% in one week and down 3.0% year to date; The Shanghai Composite Index closed at 3666.3, up 2.2% in one week and 5.6% year to date. Among CITIC's 30 primary industries, consumer services, food and beverage, media and other sectors performed better last week, with the machinery industry rising by 1.7%, ranking 16th. Year to date, the machinery industry has increased by 16.6%, ranking 11th. In terms of molecular industries, the top five performing industries in the machinery industry last week were detection (+ 4.4%), photovoltaic equipment (+ 4.3%), laser processing equipment (+ 3.6%), agricultural machinery equipment (+ 3.2%) and construction machinery (+ 2.3%), with the largest decline in light industrial machinery (- 4.5%).
[key information] according to IDC statistics, in the third quarter, China's wearable device Market shipped 35.28 million units, a year-on-year increase of 5%. Among them, the market shipment of EARWEAR equipment was 19.9 million units, with a year-on-year increase of 40.0%. The market is driven by low price segment products and still maintains a rapid growth rate. The shipment volume of the watch market was 10.68 million, a year-on-year decrease of 2.3%, including 4.75 million adult watches, a year-on-year increase of 4.7%, and 5.93 million children's watches, a year-on-year decrease of 7.2%; The shipment volume of Bracelet market was 4.61 million, a year-on-year decrease of 44.2%. （IDC）
[Key announcement] 1) Centre Testing International Group Co.Ltd(300012) : the company acquired 90% equity of IMAT uve GmbH in cash. The transaction parties signed the closing memorandum on December 6, 2021. 2) Kingsemi Co.Ltd(688037) : the company's initial public offering of strategic placement restricted shares is listed and circulated, the number of Placement Shares is 1.05 million, the restricted period is 24 months, and the listing and circulation date is December 16, 2021.
[this week's view] with the steady growth of downstream demand, machine substitution and domestic substitution have helped the industrial Siasun Robot&Automation Co.Ltd(300024) boom rise. Industrial Siasun Robot&Automation Co.Ltd(300024) downstream applications mainly include automobile, 3C and metal processing, accounting for more than 70% in 2019. The 2021 government work report and the 14th five year plan clearly put forward the need to promote the optimization and upgrading of the manufacturing industry. Industrial automation has become one of the directions for the transformation of manufacturing industry to high-end. China's industrial Siasun Robot&Automation Co.Ltd(300024) density has increased rapidly, but it still lags behind developed countries. From 2011 to 2020, China's industrial Siasun Robot&Automation Co.Ltd(300024) density rapidly increased from 10 sets / 10000 people to 246 sets / 10000 people, and the CAGR was 42.7%; However, in 2020, the industrial Siasun Robot&Automation Co.Ltd(300024) density of Japan, Germany and South Korea will be 390, 371 and 932 sets / 10000 people respectively, all exceeding China by more than 50%. In addition, the change of labor structure and import substitution have also become the driving force of the industry. 1) machine substitution has become a trend. According to the data of the National Bureau of statistics, the proportion of labor force population continued to decline from 74.5% to 68.6% from 2010 to 2020; Correspondingly, the per capita wage in the manufacturing industry continued to rise from 31000 yuan / year to 83000 yuan / year, an increase of 167.7%. With the rise of labor cost, machines play a prominent role in reducing cost and increasing efficiency for people, which will accelerate the installation and use of industry Siasun Robot&Automation Co.Ltd(300024) . 2) With the rise of local enterprises, there is great room for import substitution. The global industrial Siasun Robot&Automation Co.Ltd(300024) market is monopolized by four enterprises: FANUC in Japan, Yaskawa electric, abb in Switzerland and KUKA in Germany. Local enterprises have successfully carried out import substitution in the Chinese market by virtue of cost advantages and continuously improving technical level. According to IFR data, China's own brand industrial Siasun Robot&Automation Co.Ltd(300024) market share increased from 23.5% in 2017 to 31.3% in 2019.
Investment advice
Downstream demand is rising steadily. With the superposition of policy support, machine substitution and domestic substitution, China's industrial Siasun Robot&Automation Co.Ltd(300024) industry is expected to enter an upward cycle. It is suggested to pay attention to the relevant targets of the industrial Siasun Robot&Automation Co.Ltd(300024) industrial chain.
Risk statement
The demand of automobile and 3C industries is lower than expected, the localization process of core parts is blocked, and the policy changes.
