Key investment points:
Market review: as of April 29, 2022, Shenwan power equipment industry fell 2.37% last week, 2.30 percentage points lower than Shanghai and Shenzhen 300 index, ranking second among Shenwan 31 industries; Shenwan power equipment sector has fallen 15.53% so far this month, 10.65 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries; Shenwan power equipment sector has fallen 30.55% year to date, 11.85 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 28th among Shenwan 31 industries.
As of April 29, 2022, the six sub sectors of Shenwan power equipment industry had different ups and downs in the recent week, and the photovoltaic equipment sector had the largest increase of 6.20%. The performance of other sectors is as follows: the motor II sector rose 3.59%, the other power supply equipment II sector fell 2.68%, the battery sector rose 0.72%, the power grid equipment sector rose 2.33%, and the wind power equipment sector fell 2.28%.
Among the top ten stocks that rose last week, Ceepower Co.Ltd(300062) , Luoyang Xinqianglian Slewing Bearings Co.Ltd(300850) and Nari Technology Co.Ltd(600406) ranked among the top three in Shenwan power equipment sector, up 29.51%, 19.98% and 19.49% respectively. Among the top ten stocks that fell last week, Northeast Electric Development Company Limited(000585) , Haili wind power and Fujian Nebula Electronics.Ltd(300648) performed weakly, with declines of 66.33%, 22.32% and 19.39% respectively.
In terms of Valuation: as of April 29, 2022, the PE (TTM) of power equipment sector was 31.26 times; In terms of sub sectors, the PE (TTM) of motor II is 27.39 times, that of other power supply equipment II is 21.51 times, that of photovoltaic equipment is 34.43 times, that of wind power equipment is 17.98 times, that of battery is 41.97 times, and that of power grid equipment is 21.20 times.
Zhou’s view of the power equipment industry: in April, some new silicon material production capacity was released, and China’s output increased by about 6.2% month on month. However, due to the fact that two silicon material manufacturers in China are still overhauling and maintaining, the demand for additive crystal drawing materials remains high, and the silicon material is still in short supply in April. It is expected that in the short term, the epidemic situation in China and the obstruction of logistics transportation will still have a certain impact on the production and delivery of the industrial chain. At present, the prices of all links of the industrial chain are relatively strong. In terms of export, overseas demand for components remains strong, and the acceptance of high priced components is high. The price of components exported to Europe exceeds 2 yuan / W. Recently, high-level officials have successively held the central financial and economic conference and the meeting of the Political Bureau. Stabilizing the economy and stable development is still the current focus. The meeting also pointed out that we should comprehensively strengthen infrastructure construction, and it is expected that large investment will be maintained in new and old infrastructure. As the six districts in Shanghai have met the basic social clearance standard, the impact of the epidemic will be further alleviated, and the production, logistics and transportation of enterprises are expected to be gradually improved. Under the background of the continuous price rise of the industrial chain, the increase of silicon material supply in May, the gradual improvement of production and transportation conditions of Chinese enterprises and strong overseas demand, it is suggested to pay attention to Tongwei Co.Ltd(600438) ( Tongwei Co.Ltd(600438) ) and Tbea Co.Ltd(600089) ( Tbea Co.Ltd(600089) ) benefiting from the simultaneous rise of silicon material volume and price; Nari Technology Co.Ltd(600406) ( Nari Technology Co.Ltd(600406) ) benefiting from the recovery of infrastructure investment and the acceleration of UHV construction; Film faucet Hangzhou First Applied Material Co.Ltd(603806) ( Hangzhou First Applied Material Co.Ltd(603806) ) benefiting from the rise of film volume and price.
Risk warning: the intensification of the epidemic in China will affect the logistics and transportation; The new supply of silicon material is less than expected, resulting in the risk of price rise; The weakening of component export demand leads to the risk that the demand for auxiliary materials is lower than expected.
