Market review: as of March 11, 2022, Shenwan auto sector fell 4.75% in the week, 0.53% lower than the Shanghai and Shenzhen 300 index, ranking 19th among Shenwan’s 31 industries. All five sub sectors of Shenwan automobile industry fell, with motorcycles and other sectors falling the least, and commercial vehicles falling the most. The specific performance is as follows: Motorcycle and other sectors fell 1.82%, automobile service sector fell 3.73%, passenger car sector fell 4.20%, auto parts sector fell 5.16%, and commercial vehicle sector fell 5.99%. The top three companies with weekly growth were Zhonglu.Co.Ltd(600818) , Junda shares and Guangdong Dcenti Auto-Parts Stock Limited Company(603335) , with growth rates of 61.18%, 11.70% and 11.07% respectively. The top three companies with weekly decline were Aofu Environmental Technology Co.Ltd(688021) , Yunnan Xiyi Industrial Co.Ltd(002265) , and No. 9 company WD, with declines of 17.03%, 15.99% and 14.61% respectively. In terms of valuation, as of March 11, the pettm of Shenwan automobile sector was 25 times, at the quantile of 67.45% in recent five years and 78.71% in recent ten years; In terms of sub sectors, the pettm of automobile service sector is 17 times, that of auto parts sector is 24 times, that of passenger car sector is 31 times, and that of commercial vehicle sector is 19 times.
View of the Auto Industry Week: the auto sector continued to decline this week, showing a weak performance. The sub sectors such as passenger cars, auto parts and commercial vehicles all fell by more than 4%. The passenger car Federation released the automobile production and sales data in February. In February, the retail sales volume of passenger car market was 1.246 million, with a year-on-year increase of 4.2% and a month on month decrease of 40%. From January to February, the total retail sales volume was 3.324 million, with a year-on-year decrease of 1.8%. In terms of new energy vehicles, the retail sales volume of new energy passenger vehicles in February was 272000, a year-on-year increase of 180.5%, a month on month decrease of 22.6%, and the penetration rate of new energy vehicles reached 21.8%. The impact of rising prices of new energy vehicles on subsequent orders needs to be further observed. The negative impact of the conflict between Russia and Ukraine on the global automobile manufacturing industry remains. While the shortage of some raw materials further exacerbates the tension in the supply chain of the global automobile manufacturing industry, the suspension of many global automobile manufacturers also has a certain impact on the overseas business of Chinese auto parts manufacturers. It is suggested to pay attention to the subject matter with relatively reasonable valuation after early correction, as well as the core subject matter of supporting infrastructure industrial chain supporting the promotion of new energy vehicles such as charging and replacing electricity: China Automotive Engineering Research Institute Co.Ltd(601965) ( China Automotive Engineering Research Institute Co.Ltd(601965) ), Huayu Automotive Systems Company Limited(600741) ( Huayu Automotive Systems Company Limited(600741) ), Nari Technology Co.Ltd(600406) ( Nari Technology Co.Ltd(600406) ).
Risk tip: the conflict between Russia and Ukraine has an impact on the global automobile manufacturing industry chain. The production and sales of new energy vehicles are less than expected, the improvement of chip supply is less than expected, and the safety risk of electric vehicles.
