Last week’s market
Last week, the CSI 300 rose 0.23%, the Shenwan machinery and equipment sector fell 0.58%, underperforming the market by 0.81 percentage points, ranking 23rd among all the primary industries of Shenwan. Among the 19 sub industries, the sub industries with the highest increase were textile and garment equipment, rail transit equipment III and construction machinery, up 1.84%, 1.74% and 1.67% respectively.
In terms of valuation, as of April 6, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 22.48 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 97%.
In terms of individual stocks, the top gainers were Zhejiangtailin Bioengineering Co.Ltd(300813) (30.92%), Hisense communications (26.42%), Zhejiang Damon Technology Co.Ltd(688360) (22.30%), and the top losers were Hawthorne Huatong (- 23.09%), Kunshan Kinglai Hygienic Materials Co.Ltd(300260) (- 22.52%) and Zhuzhou Crrc Times Electric Co.Ltd(688187) (- 15.80%).
Industry news
1) Shandong 9 departments jointly issued the work plan for pollution emission control of non road mobile machinery in Shandong Province.
2) the merger plan between Kony Europe and Cargotec group, two major lifting machinery engineering giants, failed.
Company news
1) Tjk Machinery (Tianjin) Co.Ltd(300823) issued an announcement on the postponement of some investment projects with raised funds.
2) Shanghai Sheng Jian Environment Technology Co.Ltd(603324) issue an announcement on winning the bid of major projects.
3) Shanghai Tianyong Engineering Co.Ltd(603895) signed a strategic cooperation framework agreement with China and Kuwait in the new century.
4) Zhejiang Taitan Co.Ltd(003036) issue an announcement on the postponement of some investment projects with raised funds.
Industry strategy and individual stock recommendation this week
In terms of construction machinery, according to the prediction of CME, the sales volume of excavators in March was about 40000, a year-on-year decrease of about 49%. Recently, the epidemic situation in China has been spreading in many places and growing rapidly, which has a certain impact on the industry sales and downstream construction. We believe that the growth rate of China’s infrastructure investment from January to February is much higher than the market expectation. Under the annual GDP growth target of 5.5%, infrastructure investment will still become the main starting point of economic growth. It is suggested to pay attention to the construction machinery faucet Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) ), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ( Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ), and the core parts manufacturer Jiangsu Hengli Hydraulic Co.Ltd(601100) ( Jiangsu Hengli Hydraulic Co.Ltd(601100) ).
In terms of photovoltaic equipment, the government work report of the two sessions changed the expression of carbon peak from “doing a solid job” to “orderly promotion” in 2021, and proposed that the energy consumption intensity target should be comprehensively assessed within the 14th Five Year Plan period, with appropriate flexibility. The new renewable energy and raw material energy consumption should not be included in the total energy consumption control. This will effectively alleviate the constraints of dual control of energy consumption on China’s economic growth and accelerate the transformation of clean energy instead of traditional energy. It is suggested to pay attention to Shenzhen S.C New Energy Technology Corporation(300724) ( Shenzhen S.C New Energy Technology Corporation(300724) ) and Wuhan Dr Laser Technology Corp.Ltd(300776) ( Wuhan Dr Laser Technology Corp.Ltd(300776) ).
Risk warning: the risk of global spread of the epidemic; The macroeconomic growth rate is lower than expected; Price fluctuation risk of raw materials; Global trade friction risk.
