Key investment points:
Market review: as of February 25, 2022, Shenwan auto sector fell 0.24% in the week, outperforming the Shanghai and Shenzhen 300 index by 1.43%, ranking 14th among Shenwan’s 31 industries. Among the five sub sectors of Shenwan automobile industry, passenger cars and auto parts rose slightly, while the rest fell. The specific performance is as follows: the passenger car sector rose 0.08%, the auto parts sector rose 0.05%, the auto service sector fell 1.63%, the commercial vehicle sector fell 2.12%, and the motorcycle and other sectors fell 2.96%. The top three companies with weekly growth were Shenzhen China Bicycle Company (Holdings) Limited(000017) , Zhejiang Yueling Co.Ltd(002725) , Hainan Drinda Automotive Trim Co.Ltd(002865) , up 15.27%, 13.48% and 12.17% respectively. The top three companies with weekly declines were Mingxin Automotive Leather Co.Ltd(605068) , Shandong Liancheng Precision Manufacturing Co.Ltd(002921) , Hyunion Holding Co.Ltd(002537) , with declines of 12.11%, 10.34% and 9.77% respectively. In terms of valuation, as of February 25, the PE TTM of Shenwan automobile sector was 28 times, at the quantile of 74.90% in recent five years and 85.94% in recent ten years; In terms of sub sectors, the PE TTM of automobile service sector is 18 times, that of auto parts sector is 26 times, that of passenger car sector is 34 times, and that of commercial vehicle sector is 21 times.
View of Auto Industry Week: this week, the auto sector fell slightly, outperformed the market, sub sectors differentiated, and passenger cars and auto parts stabilized. Under the background of continuous improvement of chip supply, the overall production and marketing of the automobile market shows a warming trend, and the Q1 automobile production and marketing data is expected to achieve moderate growth. At present, the channel inventory is still at a low level, and dealers have a good demand for replenishment of inventory, which will drive the demand of parts and components to continue to repair. With the rapid growth of new energy vehicles in recent years, accelerating the improvement of supporting measures for new energy vehicles is expected to become the focus of attention during the two sessions. New energy vehicles and charging piles, power stations, power battery recycling and other supporting fields are expected to receive market attention. It is suggested to focus on actively exploring the new energy vehicle market, actively transforming products to electric intelligence, making new breakthroughs in orders, and the performance is expected to usher in more flexible parts targets: Anhui Zhongding Sealing Parts Co.Ltd(000887) ( Anhui Zhongding Sealing Parts Co.Ltd(000887) ), Bethel Automotive Safety Systems Co.Ltd(603596) ( Bethel Automotive Safety Systems Co.Ltd(603596) ), Shanghai Baolong Automotive Corporation(603197) ( Shanghai Baolong Automotive Corporation(603197) ); As well as the targets of the charging pile industry chain that is expected to usher in the tuyere under the catalysis of the two sessions: Qingdao Tgood Electric Co.Ltd(300001) ( Qingdao Tgood Electric Co.Ltd(300001) ), Shenzhen Kstar Science & Technology Co.Ltd(002518) ( Shenzhen Kstar Science & Technology Co.Ltd(002518) ), Zhejiang Wanma Co.Ltd(002276) ( Zhejiang Wanma Co.Ltd(002276) ).
Risk tips: chip supply improvement is less than expected, automobile production and sales are less than expected, electric vehicle safety risk, etc
