Market review: as of December 24, 2021, Shenwan auto sector fell 0.14% this week, outperforming the Shanghai and Shenzhen 300 index by 0.53 percentage points, ranking 14th among Shenwan 31 industries. Among the five sub sectors of Shenwan automobile industry, only auto parts rose, the rest fell, and passenger cars fell the most. The specific performance is as follows: the auto parts sector rose 2.86%, the commercial vehicle sector fell 0.20%, the automobile service sector fell 0.88%, the motorcycle and other sectors fell 1.20%, and the passenger vehicle sector fell 4.81%. The top three companies with weekly growth were Suzhou Sonavox Electronics Co.Ltd(688533) , Shanghai Yanpu Metal Products Co.Ltd(605128) , Lizhong Sitong Light Alloys Group Co.Ltd(300428) , up 35.25%, 28.72% and 27.93% respectively. The top three companies with weekly declines were Zhejiang Yueling Co.Ltd(002725) , C Chaoda, Guangdong Dcenti Auto-Parts Stock Limited Company(603335) , with declines of 23.43%, 21.26% and 20.54% respectively. In terms of valuation, as of December 24, the pettm of Shenwan automobile sector was 32 times, at the quantile of 93.75% in recent five years and 96.29% in recent ten years; In terms of sub sectors, the pettm of automobile service sector is 20 times, that of auto parts sector is 29 times, that of passenger car sector is 39 times, and that of commercial vehicle sector is 24 times.
Key industrial news: 1. On December 25, the Beijing Tianjin Hebei fuel cell vehicle demonstration city cluster was officially launched. 2. On December 23, Huawei's first Hongmeng car was released, and the new high-end model AITO M5 was officially released. 3. On December 24, Toyota Motor said that in November, the company's global automobile production was 821300, a year-on-year decrease of 0.8%, almost returning to the level of the same period last year.
Weekly view of the auto industry: the auto sector fell slightly this week and continued to callback, but the overall decline narrowed, and the auto parts sub sector rebounded after the callback. Under the high base of the same period of last year, the automobile production and sales in November still decreased year-on-year. However, with the improvement of chip supply, the month on month growth has been achieved for three consecutive months. 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 appears, which will drive the demand of parts and components to continue to repair. New energy vehicles maintained a high growth trend, and the production and sales volume reached a record high. It is suggested to focus on global competitiveness, actively transform to electric intelligence, and benefit from the elasticity of demand replenishment after improved chip supply: Huayu Automotive Systems Company Limited(600741) (600741), Anhui Zhongding Sealing Parts Co.Ltd(000887) (000887), Ningbo Tuopu Group Co.Ltd(601689) (601689); and the core targets of hydrogen fuel cell vehicle industry chain with favorable industrial support policies: Shanxi Meijin Energy Co.Ltd(000723) (000723), Weichai Power Co.Ltd(000338) (000338).
Risk tip: chip shortage exceeds expectations, automobile production and sales are lower than expectations, raw material prices rise sharply, competition intensifies, trade friction, etc.
