Key investment points:
Investment suggestions: 1) complete vehicles and parts: in March 2022, China’s automobile sales volume was 2.234 million, with a year-on-year increase of – 11.7%. From January to March, the cumulative sales volume was 6.599 million, with a year-on-year increase of 0.2%. Due to the impact of the epidemic and the changes in local management measures on logistics efficiency, the automobile industry bears short-term pressure. However, with the mitigation of the epidemic and the resumption of production, it is expected that the production and sales volume of the industry is expected to make up, In the medium and long term, it is suggested to pay attention to the first-line independent vehicle enterprises and high-quality parts suppliers. 2) New energy vehicles: in March 2022, the sales volume of new energy vehicles was 484000, with a year-on-year increase of 114.1%. From January to March, the cumulative sales volume was 1257000, with a year-on-year increase of 138.6%. The regional epidemic led to the limited supply of new energy vehicle industry chain, the superposition of high raw material prices, and the short-term new energy vehicle industry was greatly affected. In the medium and long term, the good performance of Tesla and other new energy vehicle enterprises in the first quarter formed a positive incentive to the industry, At present, the demand for new energy vehicles has not been significantly affected, and the penetration rate of electric vehicles continues to increase. With the resumption of work and production of the industrial chain, the industry is expected to improve marginally. It is suggested to focus on the leading enterprises with leading technological innovation and obvious integrated cost advantage.
The Shanghai and Shenzhen auto industry index fell by 3.87 million percentage points last week. Among them, the key sub sectors rose or fell by – 1.55% for passenger cars, 6.08% for commercial vehicles and – 3.59% for auto parts. The new energy vehicle index fell 4.13%, outperforming the CSI 300 index by 0.06 percentage points. Among them, the rise and fall of key sub industries in the week were – 6.53% for power battery, 8.10% for lithium positive electrode, 6.55% for lithium negative electrode, 5.17% for lithium diaphragm and 5.38% for electrolyte.
Industry trends: 1) Ministry of industry and information technology: continue to implement the key action of automobile chip; 2) The Ministry of Finance issued 24.2 billion subsidy funds to support the promotion of new energy vehicles in the public sector; 3) Ministry of industry and information technology: promote the return of raw material prices of new energy vehicles to rationality; 4) Ministry of industry and information technology: establish a “white list” system for key industrial chain supply chain enterprises.
Company dynamics: 1). Harbin Viti Electronics Corp(603023) : annual report of 2021; 2) Contemporary Amperex Technology Co.Limited(300750) : annual report for 2021; 3) Camel Group Co.Ltd(601311) : annual report for 2021; 4) Hainan Drinda Automotive Trim Co.Ltd(002865) : summary of report on major asset sale and related party transactions (Draft) (Revised Draft); 5) Weichai Power Co.Ltd(000338) : Announcement on share acquisition and related party transactions.
Risk factors: the sales volume of vehicles is lower than expected, the sales volume of new energy vehicles is lower than expected, and the policy is lower than expected.
