Market review: as of April 8, 2022, the Shenwan auto sector fell 2.62% in the week, 1.56 percentage points lower than the CSI 300 index and ranked 22nd among the 31 industries of Shenwan. Among the five sub sectors of Shenwan automobile industry, only passenger cars rose, the other sub sectors fell, and the auto parts sector fell the most. The specific performance is as follows: the passenger car sector rose 0.80%, the motorcycle and other sectors fell 2.51%, the automobile service sector fell 2.69%, the commercial vehicle sector fell 3.27%, and the auto parts sector fell 4.54%. The top three companies with weekly growth were Harbin Viti Electronics Corp(603023) , Qingdao Hi-Tech Moulds & Plastics Technology Co.Ltd(301022) , Jiangsu Olive Sensors High-Tech Co.Ltd(300507) , up 18.12%, 17.72% and 10.72% respectively. The companies with the top three weekly declines were Jiangsu Xinquan Automotive Trim Co.Ltd(603179) , Wencan Group Co.Ltd(603348) , Wuxi Longsheng Technology Co.Ltd(300680) , with declines of 14.71%, 12.53% and 12.20% respectively. In terms of valuation, as of April 8, the PE TTM of Shenwan automobile sector was 25 times, at the quantile of 65.88% in recent five years and 77.93% in recent ten years; In terms of sub sectors, the PE TTM of automobile service sector is 19 times, that of auto parts sector is 22 times, that of passenger car sector is 31 times, and that of commercial vehicle sector is 19 times.
View of Auto Industry Week: the auto sector fell sharply this week, losing 300 in Shanghai and Shenzhen, and lagging behind in Shenwan industry. Since March, the epidemic has been repeated in many places, some automobile manufacturers have suspended production, and some terminals have closed their stores. Based on the weekly reports submitted by 13 key enterprises, the Automobile Association of China estimates that the sales volume of the automobile industry in March is expected to complete 2.249 million vehicles, with a month on month increase of 29.5% and a year-on-year decrease of 11%; From January to March, 6.517 million vehicles are expected to be completed, with a year-on-year increase of 0.5%. The negative impact of covid-19 epidemic and the conflict between Russia and Ukraine on the global automobile manufacturing industry continued. Chip supply is still in short supply. At the same time, the West continues to increase Russia’s sanctions, which further aggravates the tension of the global supply chain. Some factories of many auto enterprises around the world are forced to shut down or reduce production, which has a certain impact on the overseas business of some Chinese auto parts manufacturers. In terms of new energy vehicles, from the delivery volume in March approved by new energy vehicle enterprises, the delivery volume of new energy vehicles of many vehicle enterprises has generally achieved rapid growth year-on-year and month on month. At present, new energy vehicle enterprises have sufficient orders on hand and strong stock orders to support the high growth of delivery volume. Since this year, the decline of subsidies and the sharp rise in the price of upstream raw materials have promoted the price rise of new energy vehicles one after another, and the impact on new orders needs to be further observed. It is suggested to pay attention to the subject matter of order breakthrough of new energy vehicle enterprises and high-quality subject matter with strong performance support and relatively reasonable valuation: Ningbo Tuopu Group Co.Ltd(601689) ( Ningbo Tuopu Group Co.Ltd(601689) ), Hunan Oil Pump Co.Ltd(603319) ( Hunan Oil Pump Co.Ltd(603319) ), Guangzhou Automobile Group Co.Ltd(601238) ( Guangzhou Automobile Group Co.Ltd(601238) ).
Risk tip: the price of raw materials has risen sharply, the production and sales of automobiles are less than expected, the improvement of chip supply is less than expected, the impact of the conflict between Russia and Ukraine on the global automobile industry chain, the safety risk of electric vehicles, etc. Industry research certificate of industry weekly
