This week's topic: die casting is a metal casting process, which is characterized by using the inner cavity of the mold to apply high pressure to the molten metal, and the die casting machine is a machine used for pressure casting. (1) The automobile industry will continue to give growth impetus to die casting machines. Cold chamber die casting machines occupy the main die casting machine market in China. According to the data released by special casting in 2021, China's cold chamber die casting machines account for 78.85% of the total number of die casting machines. The main downstream of China's die-casting machine includes automobile and motorcycle, household appliances, 3C industry, electromechanical and tools, building materials and others, among which automobile and motorcycle are the most important downstream. In 2020, the application of die-casting machine in China's automobile and motorcycle market accounted for 65%. High strength steel and aluminum alloy castings generally need die casting. Die casting process is an important means to realize automobile lightweight. It is expected that the improvement of the permeability of lightweight parts will provide large-scale incremental demand for die casting machines. (2) China's die casting machine industry pattern. According to the data of prospective industry research institute, driven by the demand for automobile lightweight, the compound annual growth rate of China's die casting machine market from 2017 to 2020 was about 20%, and the market scale of China's die casting machine was about 17.2 billion yuan in 2020. The global die casting machine manufacturing industry is mainly distributed in China, Japan, Switzerland, Italy, Germany and the United States, and the output of die casting machines accounts for more than 90% of the global output. Japan, Germany, Italy and Switzerland account for 20% of the global output and 50% of the output value. China's die casting machine industry is highly concentrated, among which the market scale of Lijin technology, a leading enterprise in China, accounts for more than 50%, and Guangdong Yizumi Precision Machinery Co.Ltd(300415) has a market share of about 12%. Chinese die-casting machine enterprises have strong competitiveness. Tesla's first integrated die-casting process adopts the equipment of Lijin group. In April 2021, Lijin group released the world's largest 9000t giant intelligent die-casting unit at that time. Meanwhile, Haitian metal hdc8800t super large intelligent die-casting machine was also assembled and entered the commissioning stage at the end of 2021.
Risk factors: the spread of the global epidemic is accelerating, the demand boost after overseas resumption of work is lower than expected, and China's subsequent economic growth is weak.
