Key investment points:
Market review: as of January 21, 2022, Shenwan auto sector fell 3.41% this week, 4.52 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 27th among Shenwan's 31 industries. All five sub sectors of Shenwan automobile industry fell, with passenger cars falling relatively little, motorcycles and others falling the most. The specific performance is as follows: the passenger car sector fell 1.19%, the automobile service sector fell 3.64%, the commercial vehicle sector fell 4.24%, the auto parts sector fell 4.41%, and the motorcycle and other sectors fell 4.77%. The top three companies with weekly growth were Kuangda Technology Group Co.Ltd(002516) , Kunshan Huguang Auto Harness Co.Ltd(605333) , Chongqing Sokon Industry Group Stock Co.Ltd(601127) , up 14.47%, 10.95% and 10.76% respectively. The top three companies with weekly declines were Ningbo Hengshuai Co.Ltd(300969) , Nanjing Chervon Auto Precision Technology Co.Ltd(603982) , Shanghai Baolong Automotive Corporation(603197) , with declines of 26.47%, 23.21% and 17.46% respectively. In terms of valuation, as of January 21, the pettm of Shenwan automobile sector was 29 times, at the quantile of 82.81% in recent five years and 90.43% in recent ten years; In terms of sub sectors, the pettm of automobile service sector is 19 times, that of auto parts sector is 27 times, that of passenger car sector is 36 times, and that of commercial vehicle sector is 22 times.
Key industrial news: 1. The national development and Reform Commission and other seven departments issued the implementation plan for promoting green consumption, which proposed to vigorously promote new energy vehicles, gradually eliminate the purchase restrictions of new energy vehicles in various regions, promote the implementation of supporting policies such as free travel and right of way, and strengthen the construction of supporting infrastructure such as charging and changing electricity, new energy storage and hydrogenation. Promote the pilot application of new energy vehicle power exchange mode, and orderly carry out the demonstration application of fuel cell vehicles. We will further carry out new energy vehicles to the countryside, and promote and improve the rural operation and maintenance service system. 2. Ten departments including the national development and Reform Commission issued the implementation opinions on further improving the service support capacity of electric vehicle charging infrastructure, which proposed that by the end of the 14th five year plan, China's electric vehicle charging support capacity will be further improved, forming a moderately advanced, balanced layout, intelligent and efficient charging infrastructure system, which can meet the charging demand of more than 20 million electric vehicles.
View of the Auto Industry Week: the overall correction of the auto sector this week. In the short term, the Spring Festival is approaching, and the auto production and sales have cooled down. From the perspective of the general trend, the chip supply continues to improve, the overall auto market is expected to achieve steady growth in 2022, the trend of replenishing inventory will continue, and the demand for parts will continue to repair. This week, favorable policies for new energy vehicles appeared frequently. The national development and Reform Commission and other departments issued the implementation plan for promoting green consumption and the implementation opinions on further improving the service guarantee capacity of electric vehicle charging infrastructure to continue to encourage and support the development of new energy vehicles. The new energy vehicle market is expected to maintain a high growth momentum in 2022, and the fuel cell vehicle industry is expected to accelerate its development. It is suggested to pay attention to: Huayu Automotive Systems Company Limited(600741) (600741), Anhui Zhongding Sealing Parts Co.Ltd(000887) (000887), Jiangsu Pacific Precision Forging Co.Ltd(300258) (300258), Weichai Power Co.Ltd(000338) (000338).
Risk tips: the improvement of chip supply is less than expected, the production and sales of cars are less than expected, the iteration of new technology reform, the sharp fluctuation of raw material prices, the intensification of market competition, the safety risk of electric vehicles, etc.
