Key investment points:
Market review:
Rise and fall of mechanical equipment this week: Shenwan mechanical equipment industry rose 3.17% this week, outperforming the Shanghai and Shenzhen 300 index by 0.94 percentage points, ranking 10th among Shenwan 31 industries; Shenwan machinery and equipment sector has risen by 7.97% so far this month, outperforming the Shanghai and Shenzhen 300 index by 6.45 percentage points and ranking seventh among Shenwan 31 industries; Shenwan machinery and equipment sector has decreased by 24.94% year to date, underperforming the Shanghai and Shenzhen 300 index by 7.47 percentage points, ranking 27th among Shenwan 31 industries.
The secondary sector of mechanical equipment rose or fell this week: as of May 20, among the five secondary sectors of Shenwan mechanical equipment industry, from the performance of this week, the automation equipment sector rose the most, at 5.30%. The performance of other sectors is as follows: the general equipment sector rose 3.35%, the special equipment sector rose 2.31%, the construction machinery sector rose 2.22%, and the rail transit equipment sector rose 1.91%.
Rise and fall of mechanical equipment stocks: as of May 20, the top three stocks in the mechanical equipment sector this week were Mingke Jingji, Hunan Yujing Machinery Co.Ltd(002943) , huachangda, with an increase of 61.03%, 34.21% and 31.76% respectively. The first three stocks in the mechanical equipment sector fell this week were Shenzhen Lihexing Co.Ltd(301013) , Zhejiang Yilida Ventilator Co.Ltd(002686) , Weihai Guangtai Airport Equipment Co.Ltd(002111) , down 28.31%, 22.33% and 15.34% respectively.
Valuation of mechanical equipment this week: as of May 20, the pettm of Shenwan mechanical equipment sector was 22.65 times. The pettm of general equipment, special equipment, rail transit equipment, construction machinery and automation equipment are 23.42 times, 26.09 times, 16.49 times, 15.61 times and 35.27 times respectively.
Zhou viewpoint of mechanical equipment industry:
Automation equipment: in April 2022, the PMI of manufacturing industry fell below the boom and bust line, and the Siasun Robot&Automation Co.Ltd(300024) monthly and cumulative output of industry entered medium and low-speed growth, both of which slowed down. It is expected that the industrial Siasun Robot&Automation Co.Ltd(300024) output will maintain a medium and low growth rate this year. Suggested attention: Shenzhen Inovance Technology Co.Ltd(300124) ( Shenzhen Inovance Technology Co.Ltd(300124) ).
Construction machinery: in April 2022, the issuance progress of new government and local bonds slowed down, and most construction machinery increased negatively month on month, mainly due to the high base factor in the same period last year and the high sales volume in the peak season in March. It is expected that with the continuous improvement of the operating rate of infrastructure projects, the demand for construction machinery will increase. It is suggested to pay attention to: 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) ), Guangxi Liugong Machinery Co.Ltd(000528) ( Guangxi Liugong Machinery Co.Ltd(000528) ).
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.
