Overall: last week (202203.07202203.14), the CSI 300 rose or fell – 4.22%, the Shanghai index rose or fell – 4.00%, and the gem index rose or fell – 3.03%. The basic chemical industry rose or fell by – 4.29%, underperforming the Shanghai and Shenzhen 300 index by 0.07 percentage points, the Shanghai Stock Exchange Index by 0.29 percentage points and the gem by 1.26 percentage points. Its weekly rise or fall ranked 14th among the Shenwan level industries.
Sector: the new materials index rose or fell – 3.59% last week, outperforming the Shanghai and Shenzhen 300 index by 0.63 percentage points, losing the gem index by 0.56 percentage points and outperforming the Shanghai Composite Index by 0.41 percentage points. In addition to semiconductor materials, the prices of all sub industries in the new materials index sector generally fell. The top three sub industries were degradable plastics (- 5.67%), membrane materials (- 4.70%) and silicone (- 4.42%).
Individual stocks: in the new materials sector, individual stocks with positive returns accounted for 15%. The stocks with the highest growth rate include Guangzhou Great Power Energy&Technology Co.Ltd(300438) (16.01%), National Silicon Industry Group Co.Ltd(688126) -u (9.61%), Konfoong Materials International Co.Ltd(300666) (6.95%); The stocks with the largest decline are: Cybrid Technologies Inc(603212) (- 14.94%), Ningbo Changhong Polymer Scientific & Technical Inc(605008) (- 13.12%), Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) (- 12.94%).
Valuation: as of March 11, 2022, the PE (TTM) of gem index is 51.81, the PE (TTM) of new materials sector is 37.05, and the premium rate relative to gem index is – 28.49%.
Industry highlights
1. From “dual control” of energy consumption to “dual control” of carbon emission, the construction of the national carbon market has ushered in favorable conditions
2. Ren Tianling team of Tsinghua University realized the research of sub-1 nm gate length transistor
3. The total investment is 1.84 billion yuan! Beiteri Shanxi cathode project officially started construction
4. Guangzhou Tinci Materials Technology Co.Ltd(002709) and linghang technology have reached strategic cooperation on power battery recycling and other fields
Core view
Under the situation of Russia and Ukraine, the price of semiconductor rare gas soared. Under the current Russian Ukrainian war, the two major neon suppliers in Ukraine have suspended their operations. Their semiconductor neon Suppliers account for nearly 50% of the global supply, and the neon suppliers in Japan and China account for the vast majority of the remaining 50% of the world’s neon production. The above suppliers have signed contracts with their local manufacturers and are less likely to sell in large quantities to other regions. The available inventory and supply of rare gases in the semiconductor material industry are not enough to meet the current demand level, and the sector has pressure risk in the short term. If the Russia Ukraine incident is resolved, the semiconductor sector will usher in repair opportunities.
The carbon fiber boom continues, and there is huge room for import substitution. The price of carbon fiber this week is 186.8 yuan / kg and the gross profit is 57.51 yuan / kg. Both the price and gross profit are at a high level in the past 20 years. Under the guidance of the wind power market, the downstream demand of the carbon fiber industry has increased rapidly. In recent years, with Chinese enterprises gradually realizing their own technology R & D and upgrading, domestic carbon fiber has developed rapidly. After seizing the opportunity to catch up, industry leaders need to further expand their scale, reduce costs and carry out integrated construction to realize domestic substitution. It is suggested to pay attention to the enterprises such as Zhongfu Shenying (to be listed), Weihai Guangwei Composites Co.Ltd(300699) , Jilin Carbon Valley, Jilin Chemical Fibre Co.Ltd(000420) , Sinofibers Technology Co.Ltd(300777) , Hengshen Co., Ltd.
Risk tips
The risk that the epidemic situation may cause significant market fluctuations; Policy risk; The risk of technology development falling short of expectations.
