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Machinery industry: manufacturing business climate rebounded significantly

Date:2021-04-06   Click:34  

Key investment points:

Last week's market

Last week, the CSI 300 rose 3.74 percent, Shenwan machinery and equipment sector rose 2.37 percent, losing 1.38 percentage points to the market, in Shenwan all the first-level industries in the 17th place, 18 sub-sectors 11 up and down, including performance The top 5 sub-sectors were construction machinery, metal products III, other specialized machinery, printing and packaging machinery, textile and garment equipment, up 4.71%, 4.19%, 3.90%, 3.29% and 2.68%, respectively. In terms of valuation, as of the latest close, Shenwan Machinery and Equipment Sector Price-earnings ratio (TTM, overall method, excluding negative values) was 29.09 times, compared with the valuation premium ratio of the CSI 300 at 97%.

In terms of individual stocks, titan shares (28.92%), Maiwei shares (23.07%), Shandong Weida (20.68%), Jinto shares (18.87%), Rongjie shares (18.63%), the largest decline The previous ones were Huning Shares (-29.74%), Fida Environmental Protection (-16.86%), C Tongye (-16.41%), Today Venture Group (-15.79%), Hongyu Shares (-12.63%).

Industry news

1) The PMI in March was 51.9%, and the business climate of the manufacturing sector rebounded significantly.

2) The ratio of research and development expenses plus deduction for manufacturing enterprises has been increased from 75% to 100%.

Company news

1) China Sinochem Group Co., Ltd. and China Chemical Group Co., Ltd. were approved for reorganization.

2) Guorui Technology was granted a 22.5% stake in Zhejiang Beiyi and signed an equity transfer agreement.

3) Nanfeng shares received 57.17 million yuan of Zhejiang BJ project bid notice.

This week's industry strategy and individual stock recommendations

In terms of construction machinery, although the growth trend of sales of major construction machinery in the first two months of the year is related to the lower base caused by the impact of the outbreak in the same period last year, but compared with the same period in 2019, excavator sales increased by 57% YoY, forklift sales increased by 44% YoY, confirming that the industry is still in high business climate, the future with the global epidemic gradually alleviated after the popularity of vaccines, excavator export data is expected to maintain a steady recovery trend, the overall sales of excavators is expected to achieve about 10% growth in 2021. In this expectation, it is recommended to focus on the construction machinery leader Sany Heavy Industries (600031), construction machinery (600984), and the core component manufacturer Hangli Hydraulics (601100).

In terms of industrial robots, China's manufacturing PMI was 51.9% in March, the 13th consecutive month above the line. Benefiting from the improvement of the overall environment of downstream manufacturing industry, China's cumulative production of industrial robots in the first two months of 2021 was 454,000 units, up 117.6% YoY. At present, China is in the manufacturing capacity from low-end to high-end transformation of an important stage, with China's demographic dividend gradually fade and industrial robot prices continue to explore, the price difference between the two has been significantly reduced, machine replacement will become an important trend of the future manufacturing transformation, in the process it is recommended to pay attention to the domestic decelerator leader green harmonics (688017), system integration field leader Tusta (300607).

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Grasp the "core values" of the machinery industry, the first batch of machinery ETFs will be issued soon

In the past two years, A-shares out of the structural market, with strong investment and research capabilities, public fund performance rising across the board. With the concept of "stock speculation is better than buying funds" becoming more and more popular, the market is not short of performance funds to investors to bring real rich returns. It is reported that wells-off China Securities sub-machinery and equipment industry theme ETF (field abbreviation: mechanical ETF, fund code: 159886) will be issued on March 22.

Grasp the

Multiple benefits pulled the machinery industry up more than expected

In 2020, China's machinery industry bucked the trend and the economic performance exceeded expectations. According to the China Machinery Industry Federation, in 2020, the machinery industry achieved operating income of 22.85 trillion yuan, up 4.49% YoY, 3.73 percentage points higher than the national industry;

Multiple benefits pulled the machinery industry up more than expected

Machinery industry: manufacturing business climate rebounded significantly

Last week, the CSI 300 rose 3.74 percent, Shenwan machinery and equipment sector rose 2.37 percent, losing 1.38 percentage points to the market, in Shenwan all the first-level industries in the 17th place, 18 sub-sectors 11 up and down, including performance The top 5 sub-sectors were construction machinery, metal products III, other specialized machinery, printing and packaging machinery, textile and garment equipment, up 4.71%, 4.19%, 3.90%, 3.29% and 2.68%, respectively. In terms of valuation, as of the latest close, shenwan machinery and equipment sector price-earnings ratio (TTM, overall method, excluding negative values) was 29.09 times, compared with the valuation premium ratio of the CSI 300 of 97%. In terms of individual stocks, titan shares (28.92%), Maiwei shares (23.07%), Shandong Weida (20.68%), Jinto shares (18.87%), Rongjie shares (18.63%), the largest decline The previous ones were Huning Shares (-29.74%), Fida Environmental Protection (-16.86%), C Tongye (-16.41%), Today Venture Group (-15.79%), Hongyu Shares (-12.63%).

Machinery industry: manufacturing business climate rebounded significantly

Zhongshan factory waste machinery recycling where there is - Xinhua News

Most recycled raw materials, such as waste plastics, waste rubber, waste paper, waste non-ferrous metals, etc., in accordance with the current recycling manufacturing technology, regeneration once, the intrinsic quality is reduced once, so that the quality of recycled products is poor. And scrap iron repeatedly back to the furnace steelmaking, recycling, not only will not reduce the inherent physical and chemical performance of steel and technical indicators, but also in a sense, the steelmaking process is the process of steel water purification. Each time the scrap iron returns to the furnace, its inherent harmful elements (sulfur, phosphorus, silicon, etc.) and other impurities are purified once. Therefore, the use of scrap iron back furnace steelmaking, is conducive to improving the intrinsic quality of steel water, improve the physical and chemical performance of steel and technical indicators, can be described as "Phoenix Nirvana, bath fire rebirth", "hundreds of steel." The difficulty of scrap iron recovery is that the non-ferrous metal elements left in scrap iron are not easily removed in the process of steelmaking, and the sorting in the treatment of scrap iron purification must be strengthened to speed up the technological breakthrough of copper, nickel, chromium and tin in steelmaking.

Zhongshan factory waste machinery recycling where there is - Xinhua News