Key investment points
Overall: last week (2022032120220327), the CSI 300 rose or fell by – 2.14%, the growth enterprise market rose or fell by – 2.80%, and the automotive industry rose or fell by – 1.49%, ranking 17th in 30 industries at the first level of CITIC.
Industry segments: auto sales and services ranked first with a weekly increase or decrease of + 2.52%, and auto parts industry ranked last with a weekly increase or decrease of – 2.12%.
Concept sector: ethanol gasoline and automotive aftermarket ranked first with weekly increases and decreases of + 3.68% and + 1.29% respectively, while new energy vehicles and Contemporary Amperex Technology Co.Limited(300750) industry chain index ranked last with weekly increases and decreases of – 3.38% and – 2.87% respectively.
Stocks: 87 stocks in the automotive industry (CITIC) achieved positive returns last week (2022032120220327). Among them, Sinomach Automobile Co.Ltd(600335) ranked first with a rise and fall of + 28.43%, and Zhonglu.Co.Ltd(600818) ranked last with a rise and fall of – 15.69%.
Valuation: as of March 25, 2022, the PE (TTM) of the automotive industry (CITIC class I) was 36.19 and the PE (TTM) of new energy vehicles was 53.85.
Industry highlights
1) Suzuki will invest US $1.26 billion to produce electric vehicles in India;
2) Volkswagen will invest US $7.1 billion in North America to produce 25 electric vehicles;
3) Geely Automobile’s revenue in 2021 was 101.6 billion yuan, a year-on-year increase of 10.3%;
Investment advice
Since March, covid-19 epidemic has spread in many places, the number of locally confirmed cases and asymptomatic infections has increased, isolation measures have been taken in some key areas, and automobile production and terminal sales have been greatly affected. According to the estimation of the passenger Association, the sales loss caused by the epidemic in the car market this month was about 200000, a year-on-year decrease of 10.4%. At present, the market valuation is relatively low. It is recommended to pay attention to new energy vehicles, lithium mining enterprises and battery recycling enterprises, such as Byd Company Limited(002594) , Beijing Easpring Material Technology Co.Ltd(300073) , Ganfeng Lithium Co.Ltd(002460) , Tianqi Lithium Corporation(002466) , beiteri, Ningbo Ronbay New Energy Technology Co.Ltd(688005) , Shenzhen Senior Technology Material Co.Ltd(300568) , Yunnan Energy New Material Co.Ltd(002812) .
Risk tips
Economic growth is lower than expected; Car sales are less than expected; Covid-19 pneumonia continued to spread.
