This week’s view
Affected by the external market and the sharp rise of lithium carbonate, the new energy vehicle index fell slightly this week, with a large decline in the middle and upper reaches of new energy vehicles, while the diaphragm with excellent pattern fell less. The main force of market decline has changed from a wide range of growth stocks to sectors with poor performance expectations or short-term bad, the differentiation has appeared, and the market funds have not yet formed the main line.
The impact of the rise in lithium carbonate price on the vehicle price is still controllable. With the current expected sufficient supply of lithium carbonate, it can support the industry growth rate of 60% of new energy vehicles next year. The logic of high growth remains unchanged and the fundamentals remain unchanged. The short-term adjustment is only caused by the adjustment of market funds and systemic risks. At the same time, the adjustment range has been equivalent to that in March 21, and some stocks have been corrected by 30-40%. As a long-term high-profile track, large fluctuations in the upward process are inevitable. The sharp correction makes the valuation of many stocks return to a reasonable range, focusing on sectors with excellent pattern and better performance than expected.
Market performance
This week, the Shanghai Composite Index rose 0.04% to close at 3522.57; CSI 300 rose 1.11% to close at 4779.31; CITIC power new energy industry index fell 2.85%, underperforming the CSI 300 index by 3.96%. In terms of sub sectors, the new energy vehicle index fell 4.41%, the photovoltaic index fell 2.97% and the wind power index fell 2.15%.
Some company dynamics
Trina Solar Co.Ltd(688599) (688599. SH) released the performance forecast on the evening of January 18. It is expected that the net profit attributable to the owners of the parent company will be 1.72 billion yuan to 2.05 billion yuan in 2021, an increase of about 491 million yuan to about 821 million yuan compared with the same period of last year, a year-on-year increase of 39.92% to 66.76%. (company announcement)
Guangzhou Tinci Materials Technology Co.Ltd(002709) (002709. SZ) released the annual performance forecast for 2021 on January 18. It is estimated that the annual net profit attributable to shareholders of listed companies will be 2.1 billion yuan to 2.3 billion yuan, with a year-on-year increase of 294.09% to 331.62%; The net profit after deducting non recurring profits and losses was RMB 2.059 billion to RMB 2.259 billion, with a year-on-year increase of 289.72% to 327.57% (company announcement)
Risk tips
The risk of intensified market competition, repeated epidemic and subsidy policy.