Last week’s market
Last week, CSI 300 fell 1.35%, Shenwan machinery and equipment sector fell 1.61%, outperforming the market by 0.26 percentage points, ranking 16th among all the primary industries of Shenwan, and 19 sub industries rose 15% and fell 3. Among them, the sub industries with better performance are building equipment, rail transit equipment III, Siasun Robot&Automation Co.Ltd(300024) , up 0.98%, 0.22% and 0.15% respectively.
In terms of valuation, as of January 19, 2022, the price earnings ratio (TTM, overall method, excluding negative values) of Shenwan machinery and equipment sector was 25.54 times, and the valuation premium rate relative to Shanghai and Shenzhen 300 was 103%.
In terms of individual stocks, the top gainers were Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700) (31.18%), Suzhou Harmontronics Automation Technology Co.Ltd(688022) (25.15%), Shandong Weida Machinery Co.Ltd(002026) (20.76%), Meter Instruments Co.Ltd(301006) (19.02%), Dalian Haosen Equipment Manufacturing Co.Ltd(688529) (19.00%), and the top gainers were Maider Medical Industry Equipment Co.Ltd(688310) (- 27.15%), Fujian Snowman Co.Ltd(002639) (- 23.06%), Zhejiang Chunhui Intelligent Control Co.Ltd(300943) (- 17.26%), Hunan Yujing Machinery Co.Ltd(002943) (- 15.99%) and Thinker Agricultural Machinery Co.Ltd(603789) (- 15.66%).
Industry news
1) Mongolia plans to start large-scale highway and railway construction projects.
2) the Ministry of transport issued the operation report card, adding 1168 km of operation mileage in 2021.
Company news
1) Sany Heavy Industry Co.Ltd(600031) issue an announcement on the change of the chairman, vice chairman and President of the company.
2) Qingdao Weflo Valve Co.Ltd(002871) invested 60 million yuan to establish a joint venture.
3) Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) the Xiangjiang Industrial Fund to be established with an investment of 980 million yuan has completed the filing procedures.
4) Tianyuan environmental protection signed the contract for the reconstruction and expansion project of the sewage treatment plant of RMB 118 million.
5) Ningbo Zhenyu Technology Co.Ltd(300953) it is proposed to invest 1.2 billion yuan to build the production and manufacturing project of motor iron core and components.
Industry strategy and individual stock recommendation this week
In terms of construction machinery, according to the data of China Construction Machinery Industry Association, the sales volume of excavators in December was 24000 units, a year-on-year decrease of 23.8%, of which 15423 units were sold in the Chinese market, a year-on-year decrease of 43.5%; 8615 sets were exported, a year-on-year increase of 105%. In 2021, the annual excavator sales volume was 342800 units, with a year-on-year increase of 4.63%, which was lower than the annual growth expectation of 10%. In addition, the recent central economic work conference emphasized steady growth. The Ministry of Finance issued a new special debt of 1.46 trillion yuan in 2022 in advance. Major projects around the country started one after another, driving the growth of construction machinery demand, and the downstream demand for construction machinery improved in the first quarter. Under this expectation, it is suggested to focus on leading enterprises in the industry, such as leading Sany Heavy Industry Co.Ltd(600031) (600031), Shaanxi Construction Machinery Co.Ltd(600984) (600984) of construction machinery and Jiangsu Hengli Hydraulic Co.Ltd(601100) (601100) of core parts manufacturers.
In terms of Siasun Robot&Automation Co.Ltd(300024) , the Ministry of industry and information technology led the introduction of two favorable plans, which clearly put forward the goal of an average annual growth of 20% in industry revenue and doubling the Siasun Robot&Automation Co.Ltd(300024) density of manufacturing industry by 2025. Last year, the performance of Q3 Siasun Robot&Automation Co.Ltd(300024) enterprises was not optimistic. Some representative companies in China experienced a sharp rise in revenue but a sharp decline in profits. The rise in cost and price is one factor, and the more fundamental reason is that they are limited by technical barriers. Most of China’s Siasun Robot&Automation Co.Ltd(300024) enterprises are concentrated in the field of medium and low-end products, and their bargaining power is not strong. The introduction of the two plans will accelerate the process of China’s Siasun Robot&Automation Co.Ltd(300024) industry towards high-end. In addition, with the gradual decline of China’s demographic dividend and the continuous decline of industrial Siasun Robot&Automation Co.Ltd(300024) prices, the price scissors difference between the two has been significantly reduced, and machine replacement will become an important trend in the transformation of manufacturing industry in the future. In this process, it is suggested to pay attention to domestic industrial Siasun Robot&Automation Co.Ltd(300024) leader Guangdong Topstar Technology Co.Ltd(300607) (300607) and reducer leader Leader Harmonious Drive Systems Co.Ltd(688017) (688017).
Risk warning: risk of global epidemic spread; Macroeconomic growth is lower than expected; Price fluctuation risk of raw materials; Global trade friction risk.
