Core view
Six new nuclear power units were approved to reach a new high in nearly seven years, and the demand for cultivating diamonds reached a new record
Nuclear power: at the executive meeting of the State Council on April 20, three new nuclear power unit projects that have been included in the national plan after years of preparation and comprehensive evaluation and review were approved. Since the restart of nuclear power in 2019, the number of approved units has reached a new high in recent years (4 / 4 / 5 / 6 new units were approved in 20192022 respectively). The national attitude towards the development of nuclear power is positive and clear, and the boom continues to improve. Batch construction + post-treatment of nuclear waste opens up the growth space of nuclear power. We are optimistic about companies with high market share and high proportion of nuclear power business in the subdivided field of nuclear power, and focus on equipment links: Jiangsu Shentong Valve Co.Ltd(002438) , Anhui Yingliu Electromechanical Co.Ltd(603308) , Sinoseal Holding Co.Ltd(300470) . Cultivating diamonds: in March 2022, rough diamonds increased by + 157.08% on a year-on-year basis and + 30.97% on a month on month basis. The import volume of a single month reached a record high, and the industry’s high outlook continued to be verified. We continue to be optimistic about the investment opportunities of cultivating the diamond industry. It is suggested to focus on North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , Henan Liliang Diamond Co.Ltd(301071) , Sf Diamond Co.Ltd(300179) , etc.
Important data tracking
In the past two weeks, the machinery industry decreased by 10.32%, losing Shen Zhen Shengxunda Technology Co.Ltd(300518) percentage points to Shanghai and Shenzhen. Since 2022, the steel / copper / aluminum price index has increased by 8.00% / 7.39% / 7.13%, and the comprehensive steel / copper / aluminum price index has changed by – 0.20% / + 1.80% / – 1.18% month on month in the past two weeks compared with two weeks ago.
Cultivated diamonds (GJEPC data on April 16): in terms of the import volume of rough diamonds, the import volume of cultivated diamond rough diamonds in India in March 2022 was US $203 million, with a year-on-year increase of + 157.08% and a month on month increase of + 30.97%, another record high in the import volume of a single month; In terms of the export volume of bare diamonds, the export volume of cultivated diamond bare diamonds in India in March 2022 was 137 million US dollars, with a year-on-year increase of + 59.45% and a month on month increase of + 8.90%.
Industrial Siasun Robot&Automation Co.Ltd(300024) (data of the National Bureau of statistics on April 18): from January to March 2022, the industrial Siasun Robot&Automation Co.Ltd(300024) output was 102500 units, a year-on-year increase of + 10.20%.
Machine tools (data from the National Bureau of statistics on April 18): from January to March 2022, the output of metal cutting machine tools was – 6.05% year-on-year, and the output of metal forming machine tools was + 8.00% year-on-year.
Construction machinery (data of China Construction Machinery Industry Association on April 22): it is estimated that about 26500 excavators of all kinds will be sold in April 2022, a year-on-year decrease of 43% Among them, China is expected to sell 16500 units, a year-on-year decrease of 60%; The export sales volume is expected to be 10000 units, with a year-on-year increase of 82%.
Industry key recommended portfolio: Centre Testing International Group Co.Ltd(300012) North Industries Group Red Arrow Co.Ltd(000519) Henan Huanghe Whirlwind Co.Ltd(600172) ； Opt Machine Vision Tech Co.Ltd(688686) Shanghai Friendess Electronic Technology Corporation Limited(688188) Leader Harmonious Drive Systems Co.Ltd(688017) Iray Technology Company Limited(688301) Shanghai Hanbell Precise Machinery Co.Ltd(002158) Jiangsu Guomao Reducer Co.Ltd(603915) Dongguan Yiheda Automation Co.Ltd(301029) ； Jiangsu Hengli Hydraulic Co.Ltd(601100) Zhejiang Dingli Machinery Co.Ltd(603338) ； Shenzhen United Winners Laser Co.Ltd(688518) Zhejiang Hangke Technology Incorporated Company(688006) 。 “Small but beautiful” combination: Sf Diamond Co.Ltd(300179) , Henan Liliang Diamond Co.Ltd(301071) Suzhou Sushi Testing Group Co.Ltd(300416) Emtek (Shenzhen) Co.Ltd(300938) ； Jiangsu Shentong Valve Co.Ltd(002438) Suzhou Mingzhi Technology Co.Ltd(688355) ； Yindu Kitchen Equipment Co.Ltd(603277) Warom Technology Incorporated Company(603855) Guangdong Lingxiao Pump Industry Co.Ltd(002884) ； Anhui Ronds Science & Technology Incorporated Company(688768) Shanghai Kelai Mechatronics Engineering Co.Ltd(603960) Guangdong Yizumi Precision Machinery Co.Ltd(300415) 。
Industry perspective: focus on leading companies with high-quality track and high medium and long-term winning probability.
1) testing service industry with good business model and large growth space: focus on Centre Testing International Group Co.Ltd(300012) , Suzhou Sushi Testing Group Co.Ltd(300416) , and pay attention to Guangzhou Grg Metrology&Test Co.Ltd(002967) , China National Electric Apparatus Research Institute Co.Ltd(688128) , China Building Material Test & Certification Group Co.Ltd(603060) , Suzhou Electrical Apparatus Science Academy Co.Ltd(300215) , Emtek (Shenzhen) Co.Ltd(300938) .
2) upstream core parts companies in growth stage or with high vision: recommend Opt Machine Vision Tech Co.Ltd(688686) , Shanghai Hanbell Precise Machinery Co.Ltd(002158) , Jiangsu Hengli Hydraulic Co.Ltd(601100) , Shanghai Friendess Electronic Technology Corporation Limited(688188) , Leader Harmonious Drive Systems Co.Ltd(688017) , Iray Technology Company Limited(688301) , Jiangsu Guomao Reducer Co.Ltd(603915) , Dongguan Yiheda Automation Co.Ltd(301029) .
3) high profile product companies: recommend North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , Henan Liliang Diamond Co.Ltd(301071) .
4) special / general equipment industry with high prosperity: focus on Shenzhen United Winners Laser Co.Ltd(688518) , Zhejiang Hangke Technology Incorporated Company(688006) etc.
Risk tips: macroeconomic downturn, rising prices of raw materials, sharp fluctuations in exchange rate and repeated impact of the epidemic.
