Core view:
View update this week
This week, Shanghai studied the establishment of an emergency coordination mechanism for the demands of the industrial chain supply chain, established a “white list” of key enterprises in the field of industry and information technology, and concentrated resources to give priority to ensuring the resumption of work and production of 666 key enterprises in key industries such as integrated circuit, automobile manufacturing, equipment manufacturing and biomedicine. Longtou Saic Motor Corporation Limited(600104) carried out closed-loop production in its factories in Shanghai in mid and late March, and some factories shut down successively in April. The stress test of resumption of work and production began on the 18th. The adverse factors affected by this round of epidemic are gradually alleviated and improved. Due to the long automobile industry chain and high coordination requirements, we expect the recovery of supply chain and production end will be gradually improved, and the production and sales of automobile market will face certain pressure in April.
Weekly market review
This week, the Shanghai Composite Index, Shenzhen Component Index and Shanghai Shenzhen 300 index rose or fell by – 3.11%, – 4.59% and – 0.99% respectively. The rise and fall of the automobile sector was – 2.50%, ranking 13 out of 30 industries, in the middle of the industry ranking. From the perspective of a stock situation, the top five gainers in the industry this week are the Cimc Vehicles (Group) Co.Ltd(301039) \ , Rayhoo Motor Dies Co.Ltd(002997) , Hyunion Holding Co.Ltd(002537) , with decreases of – 29.29%, – 19.94%, – 18.95%, – 17.78% and – 15.80% respectively.
Investment advice
It is suggested to continue to pay attention to Guangzhou Automobile Group Co.Ltd(601238) ( Guangzhou Automobile Group Co.Ltd(601238) . SH), Chongqing Changan Automobile Company Limited(000625) ( Chongqing Changan Automobile Company Limited(000625) . SZ), Great Wall Motor Company Limited(601633) ( Great Wall Motor Company Limited(601633) . SH / 2333. HK); The parts industry is suggested to pay attention to Huayu Automotive Systems Company Limited(600741) ( Huayu Automotive Systems Company Limited(600741) . SH), Keboda Technology Co.Ltd(603786) ( Keboda Technology Co.Ltd(603786) . SH), Ningbo Joyson Electronic Corp(600699) ( Ningbo Joyson Electronic Corp(600699) . SH).
Risk tips
1. The risk of car sales not reaching the expectation. 2. Industrial chain risk caused by parts shortage 3. Industrial chain risk caused by chip shortage. 4. The risk of adverse impact of rising raw material prices on profits.
