Market review:
Rise and fall of mechanical equipment this week: Shenwan mechanical equipment industry fell 2.84% this week, 2.92 percentage points lower than Shanghai and Shenzhen 300 index, ranking 21st among Shenwan 31 industries; Shenwan machinery and equipment sector has fallen 14.04% so far this month, 9.16 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 28th among Shenwan 31 industries; Shenwan machinery and equipment sector has decreased by 30.48% year to date, 11.77 percentage points lower than Shanghai and Shenzhen 300 index, ranking 27th among Shenwan 31 industries.
The secondary sector of mechanical equipment rose or fell this week: as of April 29, among the five secondary sectors of Shenwan mechanical equipment industry, from the performance of this week, the automation equipment sector rose the most, at 2.60%. The performance of other sectors was as follows: the construction machinery sector fell 3.33%, the special equipment sector fell 4.44%, the general equipment sector fell 4.47%, and the rail transit equipment sector fell 4.55%.
Rise and fall of mechanical equipment stocks: as of April 29, the top three stocks in the mechanical equipment sector this week were Hongde shares, Shenzhen Lihexing Co.Ltd(301013) , Zhuzhou Crrc Times Electric Co.Ltd(688187) , with an increase of 52.04%, 28.78% and 20.35% respectively. The first three stocks in the mechanical equipment sector fell this week were Maher shares, Wuxi Smart Auto-Control Engineering Co.Ltd(002877) , Zhejiang Yuejian Intelligent Equipment Co.Ltd(603095) , with declines of 26.37%, 26.09% and 23.66% respectively.
Valuation of mechanical equipment this week: as of April 29, the pettm of Shenwan mechanical equipment sector was 20.92 times. The pettm of general equipment, special equipment, rail transit equipment, construction machinery and automation equipment are 21.05 times, 23.97 times, 16.12 times, 14.99 times and 33.10 times respectively.
Zhou viewpoint of mechanical equipment industry:
Construction machinery: the central political conference emphasizes the positioning of housing and housing without speculation; At the same time, it is proposed that there are still shortcomings in China’s new and old infrastructure, and there is still much room for improvement in infrastructure in the future. Infrastructure construction will be comprehensively strengthened, which is expected to stimulate the demand for construction machinery. Suggestions for attention: Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) ), Xcmg Construction Machinery Co.Ltd(000425) ( Xcmg Construction Machinery Co.Ltd(000425) ), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ( Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ).
Risk tips: (1) if the infrastructure / real estate / manufacturing investment is less than expected, the demand for machinery and equipment will weaken; (2) If the issuance progress of special bonds slows down or the issuance amount is lower than expected, the number of downstream projects will decrease and the demand for construction machinery will weaken; (3) If the overseas market reduces the demand for Chinese enterprises’ products, it will put pressure on the performance of Chinese enterprises; (4) If the price of raw materials rises sharply, the performance of enterprises in the industry will face greater pressure.
