Investment suggestions: 1) complete vehicles and parts: in December 2021, China’s automobile sales volume was 2.786 million, with a year-on-year increase of – 1.6%. In 2021, the annual automobile sales volume was 26.275 million, with a year-on-year increase of 3.8%. With the gradual easing of the shortage of automobile chips and the Spring Festival Promotion, it is expected that the automobile production and sales volume will further increase in the first quarter of 2022. It is suggested to pay attention to independent brands. Following the electrification of vehicles, intelligent connected vehicles are expected to become another outlet. Both traditional vehicle manufacturers and technology giants such as Huawei, Tencent and Baidu have entered the market one after another to seize the opportunity of industrial development. The rapid development of intelligent connected vehicle industry has prompted the increase of orders of relevant suppliers. It is suggested to focus on Intelligent cockpit Investment opportunities in areas such as intelligent driving and ADAS sensors. 2) . new energy vehicles: in December 2021, the sales volume of new energy vehicles was 531000, with a year-on-year increase of 113.9%. In 2021, the sales volume of new energy vehicles reached 3521000, with a year-on-year increase of 157.5%. The subsidy for new energy vehicles declined by 30% in 2022. Affected by the rise of upstream raw material prices, the rise of power battery prices and the decline of subsidies, China’s new energy vehicles ushered in a round of price adjustment, As a result, the demand side is worried by the market. In fact, we believe that under the influence of the continuous improvement of product power, the rich supply of high-quality models and the industrial scale effect, the impact on the demand side is limited. It is estimated that the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles is still expected to exceed 5 million in the middle of 2022, According to the annual performance forecast recently disclosed by listed companies, it can be seen that the performance of the new energy vehicle industry is bright, so it is still recommended to focus on the new energy vehicle industry.
Market review: last week, the auto (Shenwan) industry index fell 3.41%, 4.52 percentage points lower than the CSI 300 index, including passenger cars – 1.19%, commercial vehicles – 4.24% and auto parts – 4.41%. The new energy vehicle index fell 3.65%, outperforming the CSI 300 index by 4.77 percentage points, including power battery – 3.87%, lithium positive electrode – 5.07%, lithium negative electrode – 5.18%, lithium diaphragm – 3.90% and electrolyte – 4.21%.
Industry trends: 1) Shanghai will strengthen the layout of vehicle specification chip production to solve the problem of “lack of core”; 2) , Byd Company Limited(002594) announced an increase in the price of new energy vehicles due to the rise in the price of raw materials and the decline in subsidies; 3) Seven departments, including the national development and Reform Commission, said they would gradually eliminate restrictions on the purchase of new energy vehicles in various regions.
Company dynamics: 1) Great Wall Motor Company Limited(601633) : 2021 annual performance express; 2) , Bethel Automotive Safety Systems Co.Ltd(603596) : announcement of shareholders’ share reduction plan; 3) , Ningbo Huaxiang Electronic Co.Ltd(002048) : 2021 annual performance forecast; 4) , Hunan Zhongke Electric Co.Ltd(300035) : 2021 annual performance forecast.
Risk factors: the sales volume of vehicles is lower than expected, the sales volume of new energy vehicles is lower than expected, and the policy is lower than expected.
