Market review: as of December 10, 2021, Shenwan auto sector fell 0.8% this week, 3.95 percentage points lower than Shanghai and Shenzhen 300 index, and ranked 25th among Shenwan’s 28 industries. Among the four sub sectors of Shenwan automobile industry, except the whole vehicle, the other sub sectors fell. The specific performance is as follows: the whole vehicle plate rose 0.16%, the auto parts plate fell 1.45%, the auto service plate fell 1.48%, and other transportation equipment plate fell 2.03%. The top three companies with weekly growth were Yunnan Xiyi Industrial Co.Ltd(002265) , Guangdong Dcenti Auto-Parts Stock Limited Company(603335) , Hunan Tyen Machinery Co.Ltd(600698) , up 61.18%, 61.18% and 61.14% respectively. The companies with the top three weekly declines were Changchun Faway Automobile Components Co.Ltd(600742) , Nanjng Yueboo Power System Co.Ltd(300742) , Dynavolt Renewable Energy Technology (Henan) Co.Ltd(002684) , with the top three declines of 23.18%, 18.60% and 15.72% respectively. In terms of valuation, as of December 10, the pettm of Shenwan automobile sector was 34 times, at the quantile of 98.44% in recent five years and 98.83% in recent ten years; In terms of sub sectors, the pettm of automobile service sector is 20 times, that of automobile parts sector is 29 times, and that of automobile complete vehicle sector is 39 times.
Key industrial news: 1. According to the data of China Automobile Association, in November 2021, the production and sales of automobiles were 2.585 million and 2.522 million respectively, with a month on month increase of 10.9% and 8.1% respectively, and a year-on-year decrease of 9.3% and 9.1% respectively. 2. According to the data of China Automobile Association, in November 2021, the production and sales of new energy vehicles were 457000 and 450000 respectively, with a month on month increase of 15.1% and 17.3% respectively, and a year-on-year increase of 1.3 times and 1.2 times respectively.
Weekly view of automobile industry: China Automobile Association disclosed the automobile production and sales data in November. In November, the automobile production and sales continued the growth momentum month on month, and still decreased year-on-year, in line with expectations. Among them, new energy vehicles maintained a high growth trend, and the production and sales volume reached a new record. Since the chip shortage was gradually alleviated in September, the monthly production and sales of automobiles have continued to grow month on month, and the automobile market generally shows some signs of recovery. It is expected that the production and sales in December are expected to continue the month on month growth momentum. The follow-up inventory replenishment trend will appear, driving the demand repair of parts and components, focusing on the subject of demand replenishment elasticity after actively transforming to electric intelligence and benefiting from the improvement of chip supply, As well as the core targets of the hydrogen fuel cell vehicle industry chain with recent industrial support policies: Huayu Automotive Systems Company Limited(600741) (600741), Jiangsu Pacific Precision Forging Co.Ltd(300258) (300258), Anhui Zhongding Sealing Parts Co.Ltd(000887) (000887), Shanxi Meijin Energy Co.Ltd(000723) (000723), Weichai Power Co.Ltd(000338) (000338).
Risk tip: chip shortage exceeds expectations, macroeconomic growth is less than expected, automobile production and sales are lower than expected, competition intensifies, trade friction, etc.
