We are optimistic about the growth stock investment opportunities brought by double carbon economy, specialization, special innovation and domestic substitution
There are many segments in the high-end equipment industry, and the total number of individual stocks accounts for about 1 / 10 of the total number of stocks in the whole market. At the macro level, the investment in fixed assets will be ahead in 2022, and the demand for mechanical equipment will be strong. At the policy level, specialization and innovation are highly encouraged by policies. In conclusion, we are optimistic about the growth stock investment opportunities brought by the technological revolution represented by domestic substitution, double carbon economy and specialization and innovation.
Double carbon economy drives the growth of lithium battery equipment and laser equipment industry leaders
On the one hand, as of October 21, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles was 2.54 million, an increase of 182.13%. It is estimated that the market scale of China Shipbuilding Industry Group Power Co.Ltd(600482) lithium battery equipment in the 21st-23rd years will be 28 / 443 / 72.9 billion yuan and CAGR will be 53.39%. During the production expansion of first-line leading equipment manufacturers, orders will overflow to second-line lithium equipment manufacturers in the next two years. On the other hand, China’s laser penetration rate is lower than that of European and American countries. The double carbon target promotes the improvement of laser penetration rate. The rise of new energy, semiconductor and other industries drives the rapid expansion of downstream demand of the laser industry.
Specialize in Texin and focus on the leaders of various sub industries: third-party testing, high-end alloy, equipment and cable
The market scale of each sub industry is large, the market concentration is low, and the market share of leading companies has great room to improve. The market scale of the testing industry exceeds 300 billion, and the leading market accounts for less than 3%. The testing leaders in various fields have continuous growth market space and competitive advantages; The market demand of high-end alloy industry in China exceeds 60 billion yuan, and the leading market in China accounts for less than 1%. Companies controlling high-end alloy production technology are expected to benefit. The scale of equipment cable market is about 236.9 billion yuan, and industry leaders with the ability to expand downstream customers are expected to benefit.
Domestic substitution focuses on the independent rise of complete vehicles and domestic substitution of parts and components
In terms of complete vehicles and passenger vehicles, longer endurance, fast charging function and strong computing platform capacity have become the main selling points of intelligent electric products. In terms of complete commercial vehicles, industry leaders benefited from the rebound of heavy truck industry, the implementation of new blue light truck regulations in light truck industry, and intelligent electrification accelerated in the field of commercial vehicles. In terms of parts, excellent domestic suppliers began to enter the field of core parts. Local parts suppliers are expected to make breakthroughs in the field of core parts and components such as chassis system, thermal management system and automotive electronic system.
Investment advice
We suggest to focus on: double carbon economy drives the growth of lithium battery equipment and laser equipment industry leaders, specialize in special innovation, focus on third-party testing industry, high-end alloy, equipment cable and other industries, and look forward to the opportunities of domestic substitutes for auto parts. Key recommended companies: Guangdong Rifeng Electric Cable Co.Ltd(002953) , Suzhou Sushi Testing Group Co.Ltd(300416) , Ningbo Boway Alloy Material Co.Ltd(601137) , Keboda Technology Co.Ltd(603786) , Anhui Zhongding Sealing Parts Co.Ltd(000887) , Shanghai Baolong Automotive Corporation(603197) . The beneficiary objects include Huagong Tech Company Limited(000988) , Han’S Laser Technology Industry Group Co.Ltd(002008) , Shenzhen Yinghe Technology Co.Ltd(300457) , Guangdong Lyric Robot Automation Co.Ltd(688499) , Beiqi Foton Motor Co.Ltd(600166) , China Automotive Engineering Research Institute Co.Ltd(601965) , etc.
Risk statement
Risks caused by policy changes, failure of capacity expansion to meet expectations, and lower than expected risks of M & A
