Machinery industry: manufacturing business climate rebounded significantly
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%).
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%.
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).