Last week’s market
Last week, the CSI 300 fell 1.67%, the Shenwan machinery and equipment sector fell 1.95%, outperforming the market by 0.29 percentage points, ranking 18th among all the primary industries of Shenwan. Among the 19 sub industries, the sub industries with better performance are abrasive tools and abrasives, printing and packaging machinery and other automation equipment.
In terms of valuation, as of April 20, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 21.07 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 92%.
In terms of individual stocks, the top gainers are Zhejiangtailin Bioengineering Co.Ltd(300813) (35.77%), Zhejiang Jindun Fans Co.Ltd(300411) (26.40%), Shandong Hongyu Agricultural Machinery Co.Ltd(002890) (19.13%), and the top losers are Jindao Technology (- 28.13%), China Railway Materials Company Limited(000927) (- 25.29%) and Xuzhou Handler Special Vehicle Co.Ltd(300201) (- 24.09%).
Industry news
1) the National Bureau of statistics released the national economic operation data in the first quarter, and the growth rate of infrastructure investment increased against the trend.
Company news
1) Zhejiang Damon Technology Co.Ltd(688360) issued an announcement on signing the equity acquisition framework agreement.
Sign the product cooperation agreement with Tencent.
3) Shareate Tools Ltd(688257) purchase 100% equity of Suzhou Hongrui Management Consulting Co., Ltd.
4) Hangzhou Seck Intelligent Technology Co.Ltd(300897) issue an announcement on the extension of some raised investment projects.
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 march 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: risk of epidemic spread; The macroeconomic growth rate is lower than expected; Raw material price fluctuation risk.
