Weekly report of mechanical equipment industry: the sales volume of excavators in March was 37085 units, with a year-on-year increase of – 53.1%

Last week’s market

Last week, CSI 300 fell 2.91%, Shenwan machinery and equipment sector fell 5.26%, outperforming the market by 2.35 percentage points, ranking 19th in all primary industries of Shenwan. Among the 19 sub industries, the sub industries with better performance are complete construction machinery, construction machinery components and machine tools.

In terms of valuation, as of April 13, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 21.36 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 92%.

In terms of individual stocks, the top gainers are China Railway Materials Company Limited(000927) (33.02%), Qinghai Huading Industrial Co.Ltd(600243) (11.78%), Beijing Dinghan Technology Group Co.Ltd(300011) (11.48%), and the top gainers are minglida (- 30.23%), Zhejiangtailin Bioengineering Co.Ltd(300813) (- 26.21%) and Tianjin Jinrong Tianyu Precision Machinery Co.Ltd(300988) (- 23.85%).

Industry news

1) in March 2022, the number of operating hours of China’s Komatsu excavator was 101.2, a year-on-year increase of -16.9pct.

2) in March 2022, the sales volume of excavators was 37085 units, with a year-on-year increase of – 53.1%.

3) in March 2022, the sales volume of loaders was 15309 units, with a year-on-year increase of – 32.8%.

Company news

1) Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) released the performance forecast for 2022q1, and the net profit attributable to the parent company increased by 42.09% – 70.51% year-on-year.

2) Arctech Solar Holding Co.Ltd(688408) issue an announcement on the use of over raised funds for additional investment in raised investment projects.

3) Changchai Company Limited(000570) released the performance forecast of 2022q1, and the net profit attributable to the parent company lost 30 – 35 million yuan.

4) Jiangsu Beiren Smart Manufacturing Technology Co.Ltd(688218) participate in the establishment of Suzhou Chuangxing Zhongke venture capital partnership.

Industry strategy and individual stock recommendation this week

In terms of construction machinery, the sales volume of excavators in March was about 37100 units, lower than the 40000 units previously predicted by CME. The sales volume was lower than expected, which was mainly affected by the recent situation of multiple outbreaks and rapid growth in China, which had a certain impact on the sales volume of the industry 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: epidemic spreading risk; The macroeconomic growth rate is lower than expected; Raw material price fluctuation risk.

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