Event: on March 5, 2022, Premier Li Keqiang made a government work report, pointing out that we should "focus on cultivating 'specialized and special new' enterprises and give strong support in terms of capital, talents and incubation platform construction."
Enhance the core competitiveness of the manufacturing industry and strive to cultivate "specialized, special and new" enterprises. The 2022 government work report mentioned that efforts should be made to cultivate "specialized, special and new" enterprises. Previously, in November 2018, the Ministry of industry and information technology clarified the specific threshold of "little giant" enterprises in the notice on carrying out the cultivation of specialized and special new "little giant" enterprises, Focus on cultivating enterprises in high-end manufacturing fields such as the "four basic" Development Catalogue of industry (core technology parts and components, advanced basic processes, key basic materials and industrial technology basis) and ten key industries (new generation information technology industry, high-end CNC machine bed, Siasun Robot&Automation Co.Ltd(300024) etc.) in line with the strategy of manufacturing power, In June 2019, it announced the list of the first batch of specialized and new "little giant" enterprises. In November 2021, the State Council issued the list of practical work for "specialized and innovative" small and medium-sized enterprises, and put forward 31 practical measures to solve the pain points of the development of small and medium-sized enterprises. The stable development of small and medium-sized enterprises is an important basis for China's economic resilience, and their innovation and entrepreneurship is an important part of enhancing market activity. A number of national policies focus on supporting specialized, special and new enterprises to help the manufacturing industry move towards medium and high-end.
Tax cuts and tax rebates should be paid attention to both to help enterprises rescue, and focus on supporting the manufacturing industry. The latest government work report pointed out that "practice shows that tax reduction and fee reduction is a direct and effective way to help enterprises rescue". Moreover, this year, we have continued to strengthen this policy. It is estimated that the tax rebate and tax reduction in 2022 will be about 2.5 trillion yuan. All localities are required to introduce effective measures such as tax reduction and exemption in accordance with the law, so that the tax reduction and fee reduction can only be increased. In terms of tax reduction: continue to implement the tax reduction and fee reduction policies to support manufacturing, small and micro enterprises and individual industrial and commercial households, increase the scope of reduction and exemption, and expand the scope of application. For example, small-scale taxpayers will be exempted from value-added tax in stages, and the annual taxable income of small and micro enterprises will be reduced by half from 1 million yuan to 3 million yuan. Tax rebate: this year, a large-scale tax rebate will be implemented for the retention tax credit, which is expected to be about 1.5 trillion yuan. Priority will be given to small and micro enterprises and focus on supporting the manufacturing industry. There are many small and micro enterprises in the manufacturing industry. The tax reduction will effectively reduce the burden of enterprises. The tax rebate provides cash flow support for enterprises and promotes consumption and investment.
The general trend of import substitution in the manufacturing field remains unchanged + industrial upgrading under the requirements of carbon neutralization, and pay attention to the investment opportunities of mechanical equipment and core components. The transformation and upgrading of manufacturing industry will be a very important part of China's economy dominated by internal circulation. Chinese enterprises continue to work in photovoltaic, lithium battery, electronics, semiconductor and other fields, maintain a high level of prosperity, drive equipment investment, and the investment and import substitution at the equipment level will also promote the substitution of core components. Looking forward to 2022, on the one hand, we believe that the above advanced industries will continue to constitute a key force to drive equipment investment; On the other hand, in the mining and manufacturing of raw materials, especially in some high energy consuming industries, it is also expected to usher in an upward inflection point of equipment investment under the promotion of rising profit level and carbon neutralization policy. Chinese enterprises have a good foundation to replace imports in laser, industrial control, machine vision, industrial Siasun Robot&Automation Co.Ltd(300024) , oil service and other fields. It is recommended that [ Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) ], [ Shanghai Friendess Electronic Technology Corporation Limited(688188) ], [ Shenzhen Inovance Technology Co.Ltd(300124) ], [ Nanjing Develop Advanced Manufacturing Co.Ltd(688377) ]; It is suggested to pay attention to [ Opt Machine Vision Tech Co.Ltd(688686) ], [ Suzhou Veichi Electric Co.Ltd(688698) ], [ Estun Automation Co.Ltd(002747) ].
Risk tip: macroeconomic growth slowed down, the recovery of demand side was less than expected, and the shortage of core components exceeded expectations.
