Market review: this week, Shenwan machinery and equipment sector decreased by 0.18%, down 3.33 PCT compared with the change of Shanghai and Shenzhen 300 index, and the rise and fall range is listed in the 21st of Shenwan’s 28 primary industries. The first three stocks in the mechanical equipment sector rose weekly were Beijing Jingcheng Machinery Electric Company Limited(600860) , Hunan Yujing Machinery Co.Ltd(002943) , Baota Industry Co.Ltd(000595) , up 51.78%, 35.81% and 24.52% respectively. In terms of valuation, as of December 10, the pettm of Shenwan mechanical equipment sector was 26.49 times. The pettm of general equipment, special equipment, instruments and meters, metal products, transportation equipment, construction machinery and industrial control automation are 36.66 times, 38.63 times, 27.29 times, 12.20 times, 16.74 times, 11.38 times and 49.18 times respectively.
Zhou viewpoint of mechanical equipment industry:
Industrial control automation: in November 2021, the PMI of China’s manufacturing industry was 50.1%, which rebounded to the boom and bust line. The outlook of the downstream manufacturing industry is expected to rebound, and the demand for automation equipment is expected to grow. Continue to be optimistic about the industrial control automation industry, and it is recommended to pay attention to the subdivided industries with high prosperity. It is suggested to pay attention to: Shenzhen Inovance Technology Co.Ltd(300124) (300124), Leader Harmonious Drive Systems Co.Ltd(688017) (688017), China Leadshine Technology Co.Ltd(002979) (002979), etc.
Construction machinery: in November 2021, the month on month data of excavator sales improved. The meeting of the Political Bureau of the CPC Central Committee proposed that next year’s economic work should be stable and seek progress while maintaining stability. We should promote the construction of affordable housing, support the commercial housing market, better meet the reasonable housing needs of buyers, and promote the healthy development and virtuous cycle of the real estate industry, which will effectively support the stable growth of construction machinery. It is suggested to pay attention to: Sany Heavy Industry Co.Ltd(600031) (600031), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) (000157), Xcmg Construction Machinery Co.Ltd(000425) (000425), Guangxi Liugong Machinery Co.Ltd(000528) (000528), Zhejiang Dingli Machinery Co.Ltd(603338) (603338), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Intensified industry competition, etc.
