Market performance review in March 2022
From March 1, 2022 to March 31, 2022, the Shanghai stock index fell by 5.35%, the CSI 300 fell by 6.98%, the SME board composite fell by 8.78%, the gem composite fell by 6.46%, and the CSI 1000 fell by 6.75%. The top five industries with positive returns in March were real estate management and development index, life science tools and services III index, oil, natural gas and supply and consumption cost fuel index, pharmaceutical index, health care providers and services index and biotechnology III index. The industries with the lowest growth were electronic equipment, instruments and components index, air freight and logistics III index, household durable consumer goods index, communication equipment III index and hotel, restaurant and leisure III index. The wind machinery index fell 9.86%, ranking 52 / 62 in the month of industry growth, and the sector outperformed the Shanghai Composite Index by 4.50 percentage points.
From March 1, 2021 to March 31, 2021, the top five stocks in the wind machinery sector were Luoyang Northglass Technology Co.Ltd(002613) , Tjk Machinery (Tianjin) Co.Ltd(300823) , Zhejiang Tiantai Xianghe Industrial Co.Ltd(603500) , Tiandi Science & Technology Co.Ltd(600582) and Foshan Golden Milky Way Intelligent Equipment Co.Ltd(300619) , with increases of + 115.38%, + 31.57%, + 29.09%, + 20.34% and + 19.39% respectively. The top five stocks with declines were Jiangyin Hengrun Heavy Industries Co.Ltd(603985) , Shenzhen Changhong Technology Co.Ltd(300151) , Beijing Tianyishangjia New Material Corp.Ltd(688033) , Zhejiang Hangke Technology Incorporated Company(688006) and Hefei Meiya Optoelectronic Technology Inc(002690) , with declines of – 34.85%, – 28.43%, – 26.63%, – 25.90% and – 25.78% respectively.
Core investment view in April 2022
From the perspective of fundamentals, 2022 should focus on the following three investment opportunities. Under the trend of digitalization and intellectualization, we should focus on the new direction of infrastructure construction and focus on the investment opportunities of 5g, pan semiconductor and intelligent application industry chain; Under the green trend of double carbon background, we should focus on the investment opportunities of low-carbon new energy and energy storage, energy conservation and emission reduction industrial chain. Under the trend of internal circulation construction and manufacturing industry chain reconstruction, we should focus on the investment opportunities for the localization of aerospace and key and high-end general electromechanical equipment and parts industry chain.
We believe that in the second quarter of 2022:
Commodity prices continue to rise and fluctuate sharply, and the world’s financial rules are facing various impacts. The US interest rate hike, the regulatory conflict between China and the United States over Chinese stocks and the de dollarization of international commodity supply will have more impact and impact on China’s financial market. The unexpected withdrawal of foreign epidemic control policies has led to a rapid recovery of foreign supply. The timing of the decline in export orders of China’s manufacturing industry and Chengdu may exceed expectations. The conflict between the United States and Russia, the de dollarization of international commodity supply and the appreciation of RMB have made the price of resource products continue to rise and fluctuate sharply, increasing the impact on the cost of manufacturing industry. Overall, the current operating margin of China’s manufacturing industry is deteriorating. It was originally expected that the performance of the manufacturing industry will start from the second quarter. Now there is great uncertainty in the overall operating performance of the industry in the second quarter.
From the logic of fundamentals, 1 Pay attention to the advanced manufacturing direction determined by the good trend of space competition, and focus on the new infrastructure sub sector with the most determined policy direction; 2. We should still focus on low-carbon new energy and investment opportunities in energy storage, energy conservation and emission reduction industrial chains. 3. The world trade situation continues to deteriorate, and localization substitution is the most controllable and definite field and trend. Continue to allocate the core assets of national competitiveness, enterprises with independent high-end machining capacity, select those with card position advantages to realize the import substitution of key parts, or pay attention to those basic parts enterprises with growth certainty from bottom to top. 3. Specifically, we will continue to pay attention to sub sectors such as new energy power generation and batteries (hydrogen energy, nuclear energy, lithium battery, wind power and photovoltaic), military equipment (aerospace equipment, Beidou navigation, Satellite Internet of things and civil aircraft), new infrastructure of digital economy (5g, Internet of things, integrated circuits and third-generation semiconductors), as well as infrastructure enterprises with independent core machining capacity.
