Acceleration of import substitution of “specialized, special and new”
From 2020 to 2021, the supply chain will affect overseas brands and further accelerate the import substitution of Chinese “specialized, special and new” enterprises in key manufacturing fields. According to the recently released performance express for 2021, the revenue / profit of Zhejiang Supcon Technology Co.Ltd(688777) leader in process automation increased by 43.1% / 36.5% year-on-year; The harmonic income / profit of the leading green space of harmonic reducer increased by 104% / 133% year-on-year; Leading semiconductor equipment Advanced Micro-Fabrication Equipment Inc.China(688012) revenue / profit increased by 36.7% / 106% year-on-year; Machine tool industry, Kede Numerical Control Co.Ltd(688305) revenue / profit increased by 28% / 107% year-on-year Nantong Guosheng Intelligence Technology Group Co.Ltd(688558) revenue / profit increased by 54.6% / 66.5% year on year. China is in the process of industrial transformation. The shortage of labor force, the rise of labor price and the diversification of demand must be solved by “machines replacing people”. Low quality, low price and low-end industrial automation brands can no longer meet the quality demand of China’s manufacturing industry and are gradually eliminated by the market. Domestic brand leaders rely on localization advantages, service advantages and engineer dividends to accelerate the narrowing of the market share gap, and the industry concentration is expected to further move closer to advantageous enterprises. The suggestions focus on the focus of the ‘ Shenzhen Inovance Technology Co.Ltd(300124) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Suzhou Tztek Technology Co.Ltd(688003) etc.
China’s boom in the oil service industry continues and overseas recovery is imminent
Affected by the Russian Ukrainian war and the high implementation rate of OPEC production reduction, the crude oil price hit a new high in recent years and exceeded US $100 / barrel in the short term. The oil price continues to be higher than the comfort zone, and the global oil service market is expected to continue to recover in 2022. From China’s perspective, crude oil and natural gas are highly dependent on foreign countries, so it is urgent to ensure national energy security. Driven by the “seven-year action plan”, the “three barrels of oil” have increased capital expenditure. CNOOC expects to double its workload and proved reserves by 2025, of which the proved reserves will exceed 5 billion barrels. China’s offshore oil and gas resources have great exploitation potential and sustainability. It is suggested to focus on China Oilfield Services Limited(601808) . As the leader of offshore oil and gas production services, the company occupies the advantages of technology and scale, and has strong profit elasticity in the recovery period of global oil service.
Industry rating and opinion update this week
China’s manufacturing industry is in a period of continuous transformation and upgrading, which will bring broad market space to the high-end equipment industry and maintain the industry’s “overweight” rating. It is recommended to focus on industrial automation, self controlled semiconductor equipment, carbon neutralization, accelerating new energy industry and benefiting photovoltaic equipment and lithium battery equipment, urban rail equipment benefiting from new infrastructure, and oil service industry gradually recovering under the promotion of energy security.
This week’s core recommendations
Advanced Micro-Fabrication Equipment Inc.China(688012) : the leading position of the company in the etching field of semiconductor equipment and the gradual large-scale production of the company’s MOCVD equipment in the field of mini led. The company is committed to building a platform company and will gradually grow into an influential semiconductor equipment company in the world.
China Oilfield Services Limited(601808) : as the leader of offshore oil and gas exploitation services, the company occupies the advantages of technology and scale, and has strong profit elasticity in the recovery period of global oil service; China has benefited from the steady increase in the certainty of “three barrels of oil” capital expenditure under the national energy security strategy, and the company is expected to enter the release period of profit flexibility.
Dongguan Yiheda Automation Co.Ltd(301029) : with the advantages of localized services, the applicability of various automation equipment in local industries and the supporting advantages of Chinese manufacturing system, the company continues to maintain the improvement trend of China’s market share in the context of the upgrading of China’s manufacturing industry and the rise of emerging industries.
Risk tips
The macroeconomic boom is lower than expected; China’s fixed asset investment is less than expected; The implementation of policies in key industries is less than expected; There is uncertainty in the company’s promotion of relevant matters.
