Market review: as of April 22, 2022, Shenwan auto sector fell 2.87% in the week, outperforming the Shanghai and Shenzhen 300 index by 1.32 percentage points, ranking ninth among Shenwan’s 31 industries. Among the five sub sectors of Shenwan automobile industry, only motorcycles and other sectors rose, while the other sub sectors fell. The specific performance is as follows: motorcycles and other sectors rose 2.62%, passenger cars fell 1.55%, automobile services fell 3.53%, auto parts fell 3.59% and commercial vehicles fell 6.08%. The top three companies with weekly growth were Ningbo Shuanglin Auto Parts Co.Ltd(300100) , Ningbo Fangzheng Automobile Mould Co.Ltd(300998) , Zhongjie (Jiangsu) Technology Co.Ltd(301072) , up 37.32%, 24.70% and 20.88% respectively. The top three companies with weekly declines were China Railway Materials Company Limited(000927) , Cimc Vehicles (Group) Co.Ltd(301039) , Giti Tire Corporation(600182) , with declines of 16.52%, 14.96% and 14.34% respectively. In terms of valuation, as of April 22, the PE TTM of Shenwan automobile sector was 25 times, at the quantile of 63.53% in recent five years and 76.17% in recent ten years; In terms of sub sectors, the PE TTM of automobile service sector is 18 times, that of auto parts sector is 22 times, that of passenger car sector is 30 times, and that of commercial vehicle sector is 20 times.
View of Auto Industry Week: this week, the auto sector continues to decline, outperforming Shanghai and Shenzhen 300, and is relatively ahead in Shenwan industry. The passenger Federation predicted that the retail sales of narrow passenger cars in April was expected to be 1.1 million, and the epidemic factors still had a negative impact on the automobile production and sales data in April. However, this week, the auto industry in Shanghai, Jilin and other places has gradually resumed work and production. With the stability of epidemic prevention and control, the auto industry chain has been reactivated, and the subsequent auto production and sales are expected to improve marginally. The Ministry of Commerce recently said that it will deepen the reform in the field of automobile circulation and support the accelerated development of new energy vehicles. At present, new energy vehicle enterprises have sufficient orders in hand, which is expected to continue to support the high growth momentum of production and sales. It is suggested to pay attention to high-quality parts suppliers who actively grasp the development trend of Automotive Electric Intelligence: Ningbo Tuopu Group Co.Ltd(601689) ( Ningbo Tuopu Group Co.Ltd(601689) ), Huizhou Desay Sv Automotive Co.Ltd(002920) ( Huizhou Desay Sv Automotive Co.Ltd(002920) ), Huayu Automotive Systems Company Limited(600741) ( Huayu Automotive Systems Company Limited(600741) ).
Risk tip: the risk of automobile production and sales falling short of expectations, the risk of sharp rise in raw material prices, and the risk of impact of the conflict between Russia and Ukraine on the global automobile industry chain.
