Market review:
Rise and fall of mechanical equipment this week: Shenwan mechanical equipment industry fell 1.03% this week, outperforming the Shanghai and Shenzhen 300 index by 0.03 percentage points, ranking 11th among Shenwan 31 industries; Shenwan machinery and equipment sector has fallen by 12.09% so far this month, 4.43 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 24th among Shenwan 31 industries; Shenwan machinery and equipment sector has decreased by 20.21% year to date, underperforming the Shanghai and Shenzhen 300 index by 5.84 percentage points, ranking 25th among Shenwan 31 industries.
The secondary sector of machinery and equipment rose or fell this week: as of April 8, among the five secondary sectors of Shenwan machinery and equipment industry, from the performance of this week, the construction machinery sector rose the most, at 6.68%. The performance of other sectors is as follows: the rail transit equipment sector rose 1.61%, the special equipment sector fell 2.71%, the general equipment sector fell 2.83%, and the automation equipment sector fell 4.22%.
Rise and fall of mechanical equipment stocks: as of April 8, the top three stocks in the mechanical equipment sector this week were Xiamen Xgma Machinery Company Limited(600815) , Tangshan Jidong Equipment And Engineering Co.Ltd(000856) , Baota Industry Co.Ltd(000595) , up 20.49%, 16.05% and 14.47% respectively. The top three stocks in the mechanical equipment sector this week were Kunshan Kinglai Hygienic Materials Co.Ltd(300260) , Zhejiangtailin Bioengineering Co.Ltd(300813) , minglida, with declines of 25.27%, 23.27% and 16.55% respectively.
Valuation of mechanical equipment this week: as of April 8, the PE TTM of Shenwan mechanical equipment sector was 21.36 times. The PE TTM of general equipment, special equipment, rail transit equipment, construction machinery and automation equipment are 23.45 times, 28.09 times, 16.71 times, 12.58 times and 34.42 times respectively.
Zhou viewpoint of mechanical equipment industry:
Construction machinery: the sales volume of excavators and loaders continues to improve month on month, and the downstream prosperity gradually picks up. It is expected that the year-on-year growth rate of construction machinery will turn positive in 2022q2, and maintain medium and low growth month on month. It is suggested to pay attention to: Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) ), Xcmg Construction Machinery Co.Ltd(000425) ( Xcmg Construction Machinery Co.Ltd(000425) ), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ( Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ), Guangxi Liugong Machinery Co.Ltd(000528) ( Guangxi Liugong Machinery Co.Ltd(000528) ).
Risk tips: (1) if the infrastructure / real estate investment is less than expected, the demand for construction machinery will weaken; (2) If the issuance progress of special bonds slows down or the issuance amount is lower than expected, the number of downstream projects will decrease and the demand for construction machinery will weaken; (3) If the overseas market reduces the demand for Chinese enterprises’ products, it will put pressure on the performance of Chinese enterprises; (4) If the price of raw materials rises sharply, the performance of enterprises in the industry will face greater pressure.
