The production expansion of power battery enterprises is accelerated, and lithium battery equipment enterprises have more room for development
According to GGII, China's lithium battery equipment market reached 57.5 billion yuan in 2021, with a significant year-on-year increase of 110.3%. According to the statistics of GGII, the investment and expansion project of China Shipbuilding Industry Group Power Co.Ltd(600482) battery in 2021 exceeded 621.8 billion yuan, and the corresponding long-term planned new capacity has exceeded 2.5twh. From the perspective of capacity planning, the capacity scale of lithium batteries of leading enterprises Contemporary Amperex Technology Co.Limited(300750) , China Innovation airlines and honeycomb energy has exceeded 500gwh in 2025, which may further boost the demand for lithium battery equipment. At present, the technological level of Chinese lithium battery equipment enterprises has basically reached the world leading level, and the core competitiveness supports the further improvement of domestic substitution. At the same time, the layout of equipment enterprises going to sea has gradually entered the overseas battery supply chain system or is expected to further open the market ceiling. In addition, the renewal and iteration of lithium battery equipment also generates a certain demand for stock replacement. We believe that the head lithium battery equipment enterprises improve their business layout through mergers and acquisitions, further increase the depth of cooperation with the head battery enterprises, and have more room for development. It is suggested to focus on Wuxi Lead Intelligent Equipment Co.Ltd(300450) , Shenzhen Yinghe Technology Co.Ltd(300457) , Zhejiang Hangke Technology Incorporated Company(688006) , Shenzhen Colibri Technologies Co.Ltd(002957) , Shenzhen United Winners Laser Co.Ltd(688518) , etc.
The increase of capital expenditure is good for equipment enterprises, and domestic substitution is the general trend
According to the prediction of WSTS at the end of November 2021, the growth rate of the global semiconductor market has increased from 6.8% in 2020 to 25.6% in 2021, which is the largest growth since 2010 (a year-on-year increase of 31.8%). It is expected to continue to grow by 8.8% in 2022, and the demand boom of the semiconductor industry continues to rise. The continuous shortage of chip supply has driven wafer manufacturers to further increase capital expenditure and promote production expansion to meet production capacity. According to the latest report of semi3, it is expected that the equipment expenditure of global front-end wafer factories in 2022 is expected to reach US $107 billion, with a year-on-year increase of 18%, realizing three consecutive years of growth since 2020. In 2021, the Asia Pacific region has the strongest growth rate in the semiconductor market, and is expected to grow by 26.7%. According to SEMI statistics, from September 2021 to 2024, 25 8 inch wafer fabs will be put into use, 14 of them are located in mainland China, and the Chinese mainland semiconductor market is growing at a high speed. China's IC self sufficiency rate is only about 15.9% in 2020. We believe that in addition to the impact of the overall business cycle of the global semiconductor industry, the semiconductor manufacturing transfer under the semiconductor industry transfer (the capital expenditure growth rate of Chinese IDM manufacturers and wafer foundry is higher than the international average), the necessity of self-control, and the development dividend of domestic substitution under the shortage of equipment supply may accelerate the performance improvement of domestic equipment enterprises, With the diversification of the product layout of China's leading semiconductor equipment enterprises, the performance has more flexibility to improve. It is suggested to focus on Advanced Micro-Fabrication Equipment Inc.China(688012) , Naura Technology Group Co.Ltd(002371) , shengmei Shanghai, etc.
Industry rating and opinion update this week
China's manufacturing industry is in a period of continuous transformation and upgrading, which will bring broad market space to the high-end equipment industry and maintain the industry's "overweight" rating. It is recommended to focus on industrial automation, self controlled semiconductor equipment, carbon neutralization, accelerating new energy industry and benefiting photovoltaic equipment and lithium battery equipment, urban rail equipment benefiting from new infrastructure, and oil service industry gradually recovering under the promotion of energy security.
This week's core recommendations
Advanced Micro-Fabrication Equipment Inc.China(688012) : the leading position of the company in the etching field of semiconductor equipment and the gradual expansion of the company's MOCVD equipment in the field of miniled. The company is committed to building a platform company and will gradually grow into an influential semiconductor equipment company in the world.
China Oilfield Services Limited(601808) : as the leader of offshore oil and gas exploitation services, the company occupies the advantages of technology and scale, and has strong profit elasticity in the recovery period of global oil service; China has benefited from the steady increase in the certainty of "three barrels of oil" capital expenditure under the national energy security strategy, and the company is expected to enter the release period of profit flexibility.
Dongguan Yiheda Automation Co.Ltd(301029) : with the advantages of localized services, the applicability of various automation equipment in local industries and the supporting advantages of Chinese manufacturing system, the company continues to maintain the improvement trend of China's market share in the context of the upgrading of China's manufacturing industry and the rise of emerging industries.
Risk tips
The macroeconomic boom is lower than expected; China's fixed asset investment is less than expected; The implementation of policies in key industries is less than expected; There is uncertainty in the company's promotion of relevant matters.
