The epidemic caused the short-term decline of PMI in March, the good performance of fixed investment from January to February, and the high base put pressure on the growth of enterprise profits
At the macro data level, the PMI of China’s manufacturing industry was 49.5% in March. There were clustered epidemics in many places in China. In addition, the international geopolitical instability factors increased significantly, and the overall prosperity level of the manufacturing industry fell. From January to February, the cumulative completion of fixed asset investment in manufacturing industry was + 20.9% year-on-year. According to the breakdown of key industries, the cumulative completion of fixed asset investment in automobile manufacturing industry from January to February 2022 was the same as + 11.3%; The cumulative completed amount of fixed asset investment in 3C industry was + 35.1% year-on-year, with a good growth rate. In addition, from January to February 2022, China’s industrial added value increased by + 7.5% year-on-year, of which the manufacturing industrial added value increased by + 7.3% year-on-year. In February, the medium and long-term loans of enterprises were 505.2 billion yuan, a year-on-year decline; Corporate bond financing was 337.7 billion yuan, a year-on-year increase of + 149.0%. Affected by the high base, the growth rate of corporate profits is under pressure and the performance is poor. From January to February, the total profit of industrial enterprises was + 5.0% year-on-year, and the total profit of manufacturing industry was – 4.2% year-on-year. In terms of subdivided key industries, the total profit of automobile manufacturing industry from January to February was – 9.9% year-on-year; The total profit of 3C industry was – 7.3% year-on-year.
From January to February, the sales volume of new energy vehicles increased significantly, and the demand of the automation industry improved. At the industry level, the sales volume of vehicles in February was 1.737 million, a year-on-year increase of + 18.7%; From January to February, the cumulative sales volume of automobiles was 4.268 million, a year-on-year increase of + 7.5%; In February, 368000 and 334000 new energy vehicles were produced and sold respectively, with a year-on-year increase of 2.0 times and 1.8 times respectively. According to the National Bureau of statistics, from January to February, the output of industrial Siasun Robot&Automation Co.Ltd(300024) , metal cutting machine tools recovered, with a year-on-year increase of + 29.6% and + 7.2% respectively. Industrial Siasun Robot&Automation Co.Ltd(300024) output continues to pick up, indicating that China’s industrial automation demand is improving. Overall, the output of general industrial products maintained a certain growth rate from January to February 2022. At the meso data level, the atmosphere of industrial gas market is different, and the price of industrial gas rises and falls with each other, mainly maintaining a flat trend in the short term. Taiwan leading enterprises in China announced their business performance in February, and performed well: in February 2022, the bank realized a new revenue of 2 billion 450 million NT +31.5%, a growth rate of nearly half a year ago. From January to February 2022, the bank realized a revenue of NT $4.86 billion, a year-on-year increase of + 26.7%.
As of March 29, 2022, the statistical data of the annual report, performance express and performance forecast of 40 manufacturing key sub industry enterprises showed that the overall performance was good, and more than half of the enterprises had a growth rate of more than 50% in 2021. In the machine tool and cutting tool sector, Qinchuan Machine Tool & Tool Group Share Co.Ltd(000837) and China Tungsten And Hightech Materials Co.Ltd(000657) released the performance express, Zhuzhou Huarui Precision Cutting Tools.Co.Ltd(688059) , Ningbo Haitian Precision Machinery Co.Ltd(601882) , Oke Precision Cutting Tools Co.Ltd(688308) and Yuhuan Cnc Machine Tool Co.Ltd(002903) released the annual report, and the growth rate of net profit attributable to parent of six companies in 2021 exceeded 65%. Among them, Ningbo Haitian Precision Machinery Co.Ltd(601882) 2021 achieved an operating revenue of 2.73 billion yuan, a year-on-year increase of 67.3%; The net profit attributable to the parent company was 370 million yuan, with a year-on-year increase of 168.5%, which was the most prominent among the four companies, mainly due to the significant increase in the equipment investment demand of the company’s downstream industries, the increase in the company’s orders and the improvement of the company’s management efficiency.
In the laser equipment sector, Han’S Laser Technology Industry Group Co.Ltd(002008) , Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) and Shenzhen Jpt Opto-Electronics Co.Ltd(688025) released annual reports, and the growth rate of net profit attributable to the parent company of the three companies in 2021 exceeded 60%. Among them, Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) 2021, the company achieved an operating revenue of 3.41 billion yuan, a year-on-year increase of + 47.2%; The net profit attributable to the parent company was 470 million yuan, a year-on-year increase of + 60.2%. The rapid growth of the company’s performance in 2021 is due to the high overall prosperity of manufacturing investment on the one hand, and the obvious progress of the company’s subdivided business and the significant increase in the sales of high-power lasers on the other hand.
Risk tips
1. The capital expenditure of manufacturing industry is lower than expected;
2. Steady growth is less than expected;
3. The rise of commodity prices may have an impact on the prosperity of manufacturing industry.
