Last week’s market
Last week, the CSI 300 fell by 0.96%, the Shenwan machinery and equipment sector fell by 1.19%, outperforming the market by 0.22 percentage points, ranking 16th among all the primary industries of Shenwan, and the 19 sub industries rose by 13. Among them, the sub industries with the highest increase were energy and heavy equipment, refrigeration and air conditioning equipment and metal products, up 3.03%, 0.80% and 0.72% respectively.
In terms of valuation, as of March 2, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 23.97 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 97%.
In terms of stocks, among the top gainers in terms of stocks, the detstone shares (32.69.69%, 32.69%, Hongying (21.01%, 21.01%), Beijing Jingcheng Machinery Electric Company Limited(600860) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\7 (- 16.29%), Guoanda Co.Ltd(300902) (- 13.10%).
Industry news
1) in February 2022, the manufacturing PMI index was 50.2%, an increase of 0.1 percentage points.
2) Hunan Province is the first in China to issue local regulations to support advanced manufacturing industry.
3) Shandong Province printed and distributed the work plan for pollution emission control of non road mobile machinery in Shandong Province.
Company news
1) Guangdong Huatie Tongda High-Speed Railway Equipment Corporation(000976) 1.12 billion yuan in cash to acquire 100% equity of Qingdao changyunsheng.
2) Company No. 9 released the performance express report for 2021, and the net profit attributable to the parent company increased by 464.68%.
3) Jiangsu Hagong Intelligent Robot Co.Ltd(000584) issue a progress announcement on the repurchase of the company’s shares.
4) Yantai Jereh Oilfield Services Group Co.Ltd(002353) issue a progress announcement on the implementation of the arbitration results of Ghana project.
Industry strategy and individual stock recommendation this week
In terms of construction machinery, according to the data predicted by CME, the sales volume of excavators in February is expected to be 22000 units, with a year-on-year decrease of about 22%, and the decline is basically the same. Among them, the sales volume in the Chinese market is expected to be 15000 units, with a year-on-year decrease of 38%, the growth rate decline is narrowed slightly, and the export is flat compared with January, with an estimated sales volume of 7000 units. In terms of policies, the policy of 2022 has repeatedly emphasized steady growth, and the Ministry of Finance issued a new special debt of 1.46 trillion yuan in advance. From the perspective of investment direction, the new special debt is mainly invested in municipal and industrial park infrastructure, affordable housing projects and social undertakings. We believe that due to the impact of last year’s high base, the growth rate of Q1 industry is under pressure, but under the main line of steady growth, the improvement trend of industry demand is obvious. The continuous commencement of major projects around the country will drive the marginal improvement of construction machinery demand. It is expected that the demand of construction machinery industry is expected to improve in Q2. In 2022, the construction machinery market will show a trend of low before high. In this expectation, we suggest to focus on the repair opportunities for the oversold of industry leaders under the steady growth policy in the short term, such as the leading construction machinery manufacturer Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) ), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ( Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ), and the core parts manufacturer Jiangsu Hengli Hydraulic Co.Ltd(601100) ( Jiangsu Hengli Hydraulic Co.Ltd(601100) ).
Siasun Robot&Automation Co.Ltd(300024) aspect, the Ministry of industry and information technology took the lead in issuing two favorable plans, which clearly put forward the goal of an average annual growth of 20% in industry revenue by 2025 and doubling the Siasun Robot&Automation Co.Ltd(300024) density of manufacturing industry by 2025. Chinese Siasun Robot&Automation Co.Ltd(300024) enterprises are limited by technical barriers, their products are generally concentrated in the field of medium and low-end products, and their bargaining power is not strong. The introduction of the two plans will accelerate the process of China’s Siasun Robot&Automation Co.Ltd(300024) industry moving towards high-end. In addition, with the gradual decline of China’s demographic dividend and the continuous decline of industrial Siasun Robot&Automation Co.Ltd(300024) prices, the price scissors difference between the two has been significantly reduced, and machine replacement will become an important trend of manufacturing transformation in the future. In this process, it is suggested to pay attention to domestic Siasun Robot&Automation Co.Ltd(300024) leaders Guangdong Topstar Technology Co.Ltd(300607) ( Guangdong Topstar Technology Co.Ltd(300607) ), Yijiahe Technology Co.Ltd(603666) ( Yijiahe Technology Co.Ltd(603666) ), reducer leaders Leader Harmonious Drive Systems Co.Ltd(688017) ( Leader Harmonious Drive Systems Co.Ltd(688017) ).
Risk warning: the risk of global spread of the epidemic; The macroeconomic growth rate is lower than expected; Price fluctuation risk of raw materials; Global trade friction risk.
