Market review: as of December 31, 2021, Shenwan auto sector fell 1.05% this week, 1.44 percentage points lower than Shanghai and Shenzhen 300 index, ranking 28th among Shenwan 31 industries. Among the five sub sectors of Shenwan automobile industry, motorcycles and others, automotive services and commercial vehicles rose, while passenger cars and auto parts fell. The specific performance is as follows: Motorcycle and other sectors rose 3.04%, automobile service sector rose 0.17%, commercial vehicle sector rose 0.11%, passenger vehicle sector fell 1.18%, and auto parts sector fell 1.42%. The top three companies with weekly growth were Ningbo Heli Technology Co.Ltd(603917) , Dezhong automobile and Huayang variable speed, up 18.17%, 17.13% and 15.32% respectively. The top three companies with weekly declines were Winbo-Dongjian Automotive Technology Co.Ltd(300978) , Shanghai Carthane Co.Ltd(603037) , Jee Technology Co.Ltd(688162) , with declines of 13.38%, 13.19% and 12.39% respectively. In terms of valuation, as of December 31, the pettm of Shenwan automobile sector was 31 times, at the quantile of 92.19% in recent five years and 95.31% in recent ten years; In terms of sub sectors, the pettm of automobile service sector is 20 times, that of auto parts sector is 29 times, that of passenger car sector is 39 times, and that of commercial vehicle sector is 24 times.
Key industrial news: 1. On December 31, 2021, the Ministry of finance, the Ministry of industry and information technology, the Ministry of science and technology and the national development and Reform Commission jointly issued the notice on the financial subsidy policy for the promotion and application of new energy vehicles in 2022 and the subsidy scheme for the promotion and application of new energy vehicles in 2022. The notice requires that the subsidy standard for new energy vehicles in 2022 will decline by 30% on the basis of 2021. Meanwhile, the notice specifies that the subsidy policy for the purchase of new energy vehicles in 2022 will be terminated on December 31, 2022. 2. According to the statistics released by sneresearch on December 30, 2021, the global sales of hydrogen fuel cell vehicles increased by 95.1% year-on-year from January to November 2021, reaching 16200 vehicles. It is expected that the annual sales will exceed 18000 vehicles, of which the sales of Hyundai vehicles ranks first in the world, accounting for 55%.
View of the Auto Industry Week: this week, the auto sector continued to callback as a whole, with the decline leading, and the passenger car and auto parts sub sector showed weak performance. With the gradual improvement of chip supply, it is expected that automobile production and sales in December are expected to continue the month on month growth momentum. The follow-up inventory replenishment trend appears, and the demand of parts and components will continue to be repaired. Recently, the Ministry of Finance issued a notice that the subsidy standard for new energy vehicles in 2022 will decline by 30% on the basis of 2021, meeting the previously issued policy requirements. In 2021, the sales volume of new energy vehicles will achieve higher than expected growth. The development of new energy vehicles is being driven by policies to enter the market. It is expected that the decline of subsidies will not have a significant impact. It is suggested to focus on global competitiveness, actively transform to electric intelligence, and benefit from the elasticity of demand replenishment after improved chip supply: Huayu Automotive Systems Company Limited(600741) (600741), Anhui Zhongding Sealing Parts Co.Ltd(000887) (000887), Ningbo Tuopu Group Co.Ltd(601689) (601689), Bethel Automotive Safety Systems Co.Ltd(603596) (603596); As well as the core targets of the hydrogen fuel cell vehicle industry chain with the Winter Olympic Games approaching and market attention expected to rise: Shanxi Meijin Energy Co.Ltd(000723) (000723), Weichai Power Co.Ltd(000338) (000338).
Risk tip: chip shortage exceeds expectations, automobile production and sales are lower than expectations, raw material prices rise sharply, competition intensifies, trade friction, etc.
