Last week’s market
Last week, the CSI 300 rose 0.39%, and the Shenwan machinery and equipment sector rose 1.93%, outperforming the market by 1.54 percentage points, ranking 13th among all the primary industries of Shenwan. Among the 19 sub industries, the sub industries with better performance are industrial control equipment, laser equipment and metal products.
In terms of valuation, as of May 18, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 22.74 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 113%.
In terms of individual stocks, Mingke Jingji (46.36%), Henan Hengxing Science & Technology Co.Ltd(002132) (22.64%), Xuancheng Valin Precision Technology Co.Ltd(603356) (18.97%) led the increase, while Zhejiangtailin Bioengineering Co.Ltd(300813) (- 45.48%), Zhejiang Jw Precision Machinery Co.Ltd(300984) (- 34.14%) and Hefei Meiya Optoelectronic Technology Inc(002690) (- 26.34%) led the decrease.
Industry news
1) in April, the sales volume of excavators was 24534, a year-on-year decrease of 47.3%.
2) in April, the sales volume of loaders was 10975, a year-on-year decrease of 40.2%.
3) Shaanxi Province printed and distributed the development plan of Agricultural Mechanization in the 14th five year plan of Shaanxi Province.
Company news
1) Sany Heavy Industry Co.Ltd(600031) issue the employee stock ownership plan for 2022.
2) Hunan Zhongke Electric Co.Ltd(300035) signed an investment contract with the Management Committee of Sichuan Ganmei Industrial Park.
3) Tanac Automation Co.Ltd(300461) plans to establish Suzhou R & D branch.
4) Jiangsu Rutong Petro-Machinery Co.Ltd(603036) invested 80 million yuan to participate in the establishment of equity investment fund.
Industry strategy and individual stock recommendation this week
In terms of construction machinery, according to the data of China Construction Machinery Industry Association, 24534 excavators of various types were sold in April 2022, a year-on-year decrease of 47.3%, and the decline was narrowed. From January to April 2022, 101709 excavators were sold, a year-on-year decrease of 41.4%. We believe that the policy has repeatedly emphasized the comprehensive strengthening of infrastructure construction. With the gradual normalization of epidemic control and the commencement of major projects, the sales data of construction machinery in the second quarter is expected to narrow significantly. In this expectation, it is suggested to focus on the leading manufacturers of construction machinery Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) ), Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ( Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ), and the manufacturer of core parts Jiangsu Hengli Hydraulic Co.Ltd(601100) ( Jiangsu Hengli Hydraulic Co.Ltd(601100) ).
In terms of photovoltaic equipment, the government work report of the two sessions changed the expression of carbon peak from “doing a solid job” to “orderly promotion” in 2021, and proposed that the energy consumption intensity target should be comprehensively assessed within the 14th Five Year Plan period, with appropriate flexibility. The new renewable energy and raw material energy consumption should not be included in the total energy consumption control. This will effectively alleviate the constraints of dual control of energy consumption on China’s economic growth and accelerate the transformation of clean energy instead of traditional energy. It is suggested to pay attention to Shenzhen S.C New Energy Technology Corporation(300724) ( Shenzhen S.C New Energy Technology Corporation(300724) ) and Wuhan Dr Laser Technology Corp.Ltd(300776) ( Wuhan Dr Laser Technology Corp.Ltd(300776) ).
Risk warning: risk of epidemic spread; The macroeconomic growth rate is lower than expected; Raw material price fluctuation risk.
