Key investment points:
Market review:
Rise and fall of mechanical equipment this week: Shenwan mechanical equipment industry fell 4.84% this week, 3.85 percentage points lower than Shanghai and Shenzhen 300 index, ranking 23rd among Shenwan 31 industries; Shenwan machinery and equipment sector has fallen 16.35% so far this month, 7.77 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 26th among Shenwan 31 industries; Shenwan machinery and equipment sector has decreased by 24.07% year to date, 8.86 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 25th among Shenwan 31 industries.
The secondary sector of mechanical equipment rose or fell this week: as of April 15, among the five secondary sectors of Shenwan mechanical equipment industry, from the performance of this week, the rail transit equipment sector had the smallest decline of 3.55%. Other sectors showed as follows: the special equipment sector fell 4.90%, the general equipment sector fell 4.93%, the construction machinery sector fell 4.96%, and the automation equipment sector fell 5.02%.
Rise and fall of mechanical equipment stocks: as of April 15, the top three stocks in the mechanical equipment sector this week were, Yuhuan Cnc Machine Tool Co.Ltd(002903) , Shanghai Hi-Tech Control System Co.Ltd(002184) , Zhejiangtailin Bioengineering Co.Ltd(300813) , up 31.57%, 14.26% and 13.95% respectively. The first three stocks in the mechanical equipment sector fell this week were Tangshan Jidong Equipment And Engineering Co.Ltd(000856) , Jindao technology and Shaoyang Victor Hydraulics Co.Ltd(301079) , with declines of 23.40%, 22.91% and 21.10% respectively.
Valuation of mechanical equipment this week: as of April 15, the PE TTM of Shenwan mechanical equipment sector was 20.44 times. The PE TTM of general equipment, special equipment, rail transit equipment, construction machinery and automation equipment are 22.50 times, 26.58 times, 16.17 times, 12.00 times and 33.10 times respectively.
Zhou viewpoint of mechanical equipment industry:
Construction machinery: in the first quarter of 2022, the reserve of downstream infrastructure projects was sufficient, while the progress of special bond issuance accelerated, the industry gradually recovered, and the number of infrastructure projects started increased, driving the demand for construction machinery. It is suggested to pay attention to the leaders in the construction machinery industry: 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.
