Market review: this week, Shenwan machinery and equipment sector rose 2.02%, up 1.63 PCT compared with the change of Shanghai and Shenzhen 300 index, and the rise and fall range ranked 14th among Shenwan’s 31 primary industries. The first three stocks in the mechanical equipment sector rose weekly were Zhejiang Canaan Technology Limited(300412) , Sinomach General Machinery Science & Technology Co.Ltd(600444) , Naipu Mining Machinery Co.Ltd(300818) , up 82.90%, 51.23% and 49.52% respectively. In terms of valuation, as of December 31, the pettm of Shenwan mechanical equipment sector was 24.78 times. The pettm of general equipment, special equipment, rail transit equipment, construction machinery and automation equipment are 24.85 times, 33.14 times, 16.67 times, 15.04 times and 49.71 times respectively.
Zhou viewpoint of mechanical equipment industry:
Industrial control automation: in December 2021, the manufacturing PMI was 50.3%, standing on the boom and bust line for two consecutive months. The downstream manufacturing industry is in the expansion range, and the demand for automation equipment is expected to continue to grow. It is suggested to pay attention to: Shenzhen Inovance Technology Co.Ltd(300124) (300124), China Leadshine Technology Co.Ltd(002979) (002979), Estun Automation Co.Ltd(002747) (002747), Leader Harmonious Drive Systems Co.Ltd(688017) (688017), etc.
Construction machinery: in January 2022, the 2.19 trillion special bonds approved in advance will be issued, the downstream infrastructure projects are expected to increase, and the prosperity of the infrastructure industry is expected to rebound, which will drive the demand for construction machinery. It is suggested to pay attention to: Sany Heavy Industry Co.Ltd(600031) (600031), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) (000157), Xcmg Construction Machinery Co.Ltd(000425) (000425), Guangxi Liugong Machinery Co.Ltd(000528) (000528), etc.
Risk tips: policy changes; Macroeconomic fluctuations affect the demand for downstream products; Intensified industry competition, etc.
