This week, the electronics (Shenwan) sector index rose or fell by – 3.1%, ranking 31st in the rise and fall of Shenwan industry. Among the leading industry segments, Rockchip Electronics Co.Ltd(603893) showed signs of oversold rebound.
The overall PE of the electronics industry (shenwanyi level) was 24.4 on Friday and about 40 times in March 21. PE in the electronics industry is at the quantile of 10.9% in recent five years, and the electronics industry index is at the quantile of 59.0% in recent five years. The average turnover rate of the industry on weekdays remained low, which was 1.03% last week, the low point of nearly a year, and closer to the turnover rate of the Shanghai stock index. There was no signal of capital preference turning to the electronics industry. At present, the consensus of funds on “stable growth” is high, and the coal, real estate and other sectors with high yield and undervalued value have a great impact on the diversion of funds. However, we remain optimistic about the second quarter, because core value stocks play a role in stabilizing the market, and the growth sector, which has fallen greatly, will provide the market with the driving force for subsequent growth, so we need to wait patiently for the market rotation. We are optimistic about the opportunity of periodic rebound in the electronics sector. Due to the more negative news of terminal demand in the near future, we are relatively optimistic about the semiconductor equipment and materials sector with weak impact, and pay attention to companies with excellent performance and undervalued value in the medium and long term.
Semi predicts that the global wafer plant equipment expenditure will increase by 18% year-on-year to US $107 billion in 2022, a record high. However, it is expected that the semiconductor equipment expenditure in the Chinese market will decline by 30% to US $17.5 billion. We believe that from the actual situation, the capital expenditure of mainland wafer factories remains high, and the construction of production capacity has not stopped Semiconductor Manufacturing International Corporation(688981) capital expenditure increased by 11.1% year-on-year to US $5 billion. In 2022, new production lines of China’s three major generation plants ( Semiconductor Manufacturing International Corporation(688981) , Huahong semiconductor and crystal integration) and two major storage plants (Changjiang storage and Hefei Chang) were completed or released, which will continue to drive the growth of semiconductor equipment expenditure. Chinese equipment manufacturers had full orders at the beginning of the year, and the demand for semiconductor equipment was still strong. They were optimistic about the investment opportunities brought by the improvement of localization rate for Chinese semiconductor equipment manufacturers. China’s semiconductor equipment leader Naura Technology Group Co.Ltd(002371) added more than 3 billion yuan of orders at the beginning of the year, with a year-on-year increase of more than 60%. Both shengmei Shanghai and Zhongwei semiconductor have received orders from China this year, and Chinese wafer factories are actively seeking replacement of domestic equipment.
Focus on suggestions: it’s the leader of a high boom industry, the leader of a high boom industry, the leader of a high boom industry, the leader of a high boom industry, and the targets of performance growth: Caihong Display Devices Co.Ltd(600707) 03 \ , Gigadevice Semiconductor (Beijing) Inc(603986) , Shenzhen Kinwong Electronic Co.Ltd(603228) , etc.
Risk warning: risk of deterioration of the international situation, unexpected epidemic development and liquidity risk
