Key investment points:
Last week’s market
Last week, the CSI 300 fell 1.66%, the Shenwan machinery and equipment sector fell 3.56%, outperforming the market by 1.90 percentage points, ranking 17th among all the primary industries of Shenwan, and the 19 sub industries rose by 2 and fell by 16. Among them, the sub industries with the highest increase were textile and garment equipment and abrasive tools and abrasives, up 1.55% and 0.82% respectively.
In terms of valuation, as of March 16, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 21.21 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 92%.
In terms of stocks, the top gaingainers in terms of stocks are the Hangzhou Everfine Photo-E-Info Co.Ltd(300306) , Deshi shares (- 18.17%).
Industry news
1) the completed amount of infrastructure investment in the first two months increased by 8.62% year-on-year.
2) the industrial Siasun Robot&Automation Co.Ltd(300024) output in the first two months was 76381 units, with a year-on-year increase of 29.6%.
Company news
1) Sany Heavy Industry Co.Ltd(600031) plans to issue GDRs overseas and list them on the Swiss stock exchange.
2) Pony Testing International Group Co.Ltd(300887) acquired 70% equity of Shenzhen tongtest Technology Co., Ltd.
3) Hangzhou Oxygen Plant Group Co.Ltd(002430) invested in the establishment of Jiujiang Hangyang Tianci Gas Co., Ltd.
4) Crrc Corporation Limited(601766) 1 and February signed contracts totaling 15.93 billion yuan.
Industry strategy and individual stock recommendation this week
On March 5, the fifth session of the 13th National People’s Congress opened in Beijing. The premier of the State Council delivered a government work report to the Congress. According to the 2022 government work report and the proposals of the two sessions, the machinery and equipment industry is suggested to pay attention to the following main investment lines:
\u3000\u30001. Expand effective investment and appropriately carry out advanced infrastructure investment. In terms of construction machinery, according to the data of China Construction Machinery Industry Association, the sales volume of excavators in February was 24483, a year-on-year decrease of 13.5%. In February, the data of power on hours in China warmed up, and the demand remained improved month on month. We believe that with the entry of March, the influence of seasonal factors in the industry will subside. Under the main line of steady growth, the improvement trend of industry demand is obvious. The continuous commencement of major projects around the country will drive the marginal improvement of construction machinery demand. It is expected that the demand of construction machinery industry is expected to improve in Q2. In 2022, the construction machinery market will show a trend of low before high. In this expectation, we suggest to focus on the repair opportunities for the oversold of industry leaders under the steady growth policy in the short term, such as the leading construction machinery manufacturer Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) ), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ( Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ), and the core parts manufacturer Jiangsu Hengli Hydraulic Co.Ltd(601100) ( Jiangsu Hengli Hydraulic Co.Ltd(601100) ).
\u3000\u30002. Promote carbon peak and carbon neutralization in an orderly manner. The expression of carbon peak in the work report has changed from “doing a solid job” in 2021 to “orderly promotion”. The work report proposed that the energy consumption intensity target should be comprehensively assessed within the 14th Five Year Plan period, with appropriate flexibility, and the new renewable energy and raw material energy consumption should not be included in the total energy consumption control. This will effectively alleviate the constraints of dual control of energy consumption on China’s economic growth, accelerate the transformation of clean energy instead of traditional energy, and be optimistic about the investment opportunities of photovoltaic equipment industry under the high boom of photovoltaic industry. It is suggested to pay attention to Wuhan Dr Laser Technology Corp.Ltd(300776) ( Wuhan Dr Laser Technology Corp.Ltd(300776) )
\u3000\u30003. Adhere to the innovation driven development strategy and consolidate and expand the foundation of the real economy. The Ministry of industry and information technology has previously led the introduction of two favorable plans, which clearly put forward the goal of an average annual growth of 20% in industry revenue and doubling the Siasun Robot&Automation Co.Ltd(300024) density of manufacturing industry by 2025. Chinese Siasun Robot&Automation Co.Ltd(300024) enterprises are limited by technical barriers, their products are generally concentrated in the field of medium and low-end products, and their bargaining power is not strong. The introduction of the two plans will accelerate the process of China’s Siasun Robot&Automation Co.Ltd(300024) industry moving towards high-end. In addition, with the gradual decline of China’s demographic dividend and the continuous decline of industrial Siasun Robot&Automation Co.Ltd(300024) prices, the price scissors difference between the two has been significantly reduced, and machine replacement will become an important trend of manufacturing transformation in the future. In this process, it is suggested to pay attention to domestic Siasun Robot&Automation Co.Ltd(300024) leaders Guangdong Topstar Technology Co.Ltd(300607) ( Guangdong Topstar Technology Co.Ltd(300607) ), Yijiahe Technology Co.Ltd(603666) ( Yijiahe Technology Co.Ltd(603666) ), reducer leaders Leader Harmonious Drive Systems Co.Ltd(688017) ( Leader Harmonious Drive Systems Co.Ltd(688017) ).
Risk warning: the risk of global spread of the epidemic; The macroeconomic growth rate is lower than expected; Price fluctuation risk of raw materials; Global trade friction risk.
