Editorial Department of this journal丨Qi Yongchao
On April 10, the market staged a thrilling scene again, and many indices bottomed out and rebounded after the intraday "squat...... Why is there a huge intraday earthquake, and is there any possibility that the market will go down? Welcome all "investment friends" to leave a message to exchange and learn~
However, even in such a market environment, there are still many sectors that refuse to adjust, such as machinery and equipment, many stocks have come out of the right trend upward trend, and some of these undervalued performance stocks have greater "surprises".
From extensive documents to the introduction of a number of good to promote machinery and equipment against the trend!
In the market environment stimulated by some negative events, the poor relay of "new hot spots" and the continued volatility of "old themes", on April 10, the market was once again under pressure and differentiated, and most sectors were adjusted under pressure. The solid-state battery theme that rose on April 9 failed to extend its strength, suggesting that the market is still waiting for the "new main line" to be further established.
However, it is worth mentioning that although the market is volatile and differentiated, there is one main line that has maintained intermittent activity in the near future, that is, the machinery and equipment sector. On April 10, sub-sectors such as construction machinery and industrial machine tools ushered in a rise against the market. The construction machinery sector rose 1.77% on the day (up 2.7% intraday), and the industrial machinery sector rose 1.31% (up 3.65% intraday). Among them, the construction machinery sector has risen 18% since the market rebounded on February 6 and hit a new high since October last year (see Figure 1).
Machinery and equipment are divided into general equipment, special equipment, rail transit equipment, construction machinery, automation equipment and other segments, they have also ushered in a good performance in the secondary market, since February 6 have risen by more than 20%. As the core components of manufacturing machines and machinery, industrial machine tools have also ushered in a round of good growth recently.
Behind the heating up of the machinery and equipment sector, it may be related to multiple factors such as the recovery of economic indicators (PMI) and the blessing of related policies, such as construction machinery and industrial machine tools behind the rise against the market on April 10, or closely related to a favorable policy.
Recently, large-scale equipment renewal supporting policies have been implemented one after another. On April 9, the "Implementation Plan for Promoting the Renewal of Equipment in the Industrial Field" was issued, which mentioned that by 2027, the scale of equipment investment in the industrial field will increase by more than 25% compared with 2023;
Institutions are relatively optimistic about the future opportunities for machinery and equipment. Galaxy Securities said that the policy guides a new round of large-scale equipment updates, and a new round of Jugra cycle is expected to open to undertake new quality productivity. With the marginal improvement of macroeconomic indicators, the pro-cyclical general equipment sector represented by general machine tools and tools is expected to start.
Individual stocks are coming out of the "slow bull" market! Most of them have the characteristics of excellent performance and undervaluation
In addition to the blessing of favorable policies, many machinery and equipment companies have handed over a good performance report card. According to the statistics of the 253 targets that have released the 2023 performance forecast, 152 have a positive performance increase ceiling, accounting for 6%. In addition, from the perspective of the companies that officially disclosed their 2023 annual reports, nearly 6% of them achieved performance growth.
According to statistics, many of these high-performing stocks are coming out of the right-hand rebound, and their valuations are at a relatively low level. Taking Neway as an example, the company's main business is industrial valves and pipeline control equipment, etc., which belongs to the mechanical infrastructure subdivision of general machinery. According to its disclosed 2023 performance forecast, it is expected to achieve a net profit of 660 million yuan ~ 770 million yuan, a year-on-year increase of 42% ~ 65%. From the perspective of the secondary market, the share price of Neway shares has recently risen steadily. For example, it has risen by nearly 50% since February 6. It is worth mentioning that the company's valuation level is at a relatively low level, which is currently around 16 times.
Taking Huaming Equipment as an example, the company expects to achieve a net profit attributable to the parent company of 533 million yuan ~ 560 million yuan in 2023, a year-on-year increase of 48.28% ~ 55.8%. The company's main business is electrical equipment, with the concept of industrial machine tools, for the reasons for the growth of performance, the company said that it is related to the increase in the gross profit margin of power equipment and the rapid growth of export revenue of power equipment.
From the perspective of the secondary market, Huaming Equipment has opened the "slow bull mode", for example, since 2023, the company's share price has opened a steady rising channel, and has risen by 1.5 times so far. In mid-March, the company's share price hit a new high (see Figure 2). It is worth mentioning that the company's valuation level is also low, currently around 26 times.
In addition to Neway shares and Huaming equipment, there are many mechanical equipment concept stocks that are in line with excellent performance, undervaluation and stock price changes. We have screened the list based on the following criteria for your reference:
1. The upper limit of the performance increase in 2023 exceeds 50%
2. Since February 6, the stock price has risen relatively strongly or steadily
3. The valuation < 50 times
4. Eliminate ST shares
Statistics found that among the underlying stocks that meet the above conditions, many have seen a steady rebound at a low level, and since the market bottomed out on February 6, many stocks have risen by more than 50%, and the stock price has closed above the 20-day moving average. For example, a special equipment company, whose performance in 2023 is expected to increase by more than 70%, has risen steadily by 66.52% since February 6, and has broken through the pre-finishing platform and hit a new high in the past year (see Figure 3). For more complete information, please scan the QR code (Table 1) [Free].
The full content can be viewed in the official account of the Securities Market Weekly Market Account.
A number of targets have been surveyed by more than 50 institutions, and many stocks have opened an upward channel
Some mechanical equipment targets have been locked and concerned by institutions.
Taking Naipu mining machine as an example, the company's main business is mining and beneficiation equipment, which belongs to the field of special machinery in industrial machinery. Since March, more than 160 institutions have participated in its survey, including heavyweights such as Gao Yi and China Securities Construction Investment. In an interview, the company said that 70% of the company's products are currently used in copper mines, and with the continuous development of new energy, the demand for copper ore is increasing.
According to the performance forecast for the first quarter of 2024 recently disclosed by Naipu Mining Machinery, it is expected to achieve a net profit of 35 million yuan ~ 41 million yuan, a year-on-year turnaround. From the perspective of the secondary market, the company's stock price has also ushered in a good performance recently. On April 10, against the backdrop of market fragmentation, the company's stock price rose more than 7% intraday. Since February 6, it has risen by more than 60% and recently hit a record high since its listing in February 2020 (see Figure 4).
In addition, the construction machinery company Zoomlion, mechanical base parts company Huaxiang shares since March to obtain the number of institutional research is also more, respectively 91 and 47, from the secondary market, the share prices of the two companies have also ushered in a good rise in the near future. For example, Zoomlion, the company's share price in the first half of March after the shock differentiation, since late March to restart the rebound, April 10 intraday rose more than 4%, and hit a new high in nearly three years, Huaxiang shares share price also ushered in a good performance, February 6 since the rebound of 40%.
In the survey, Zoomlion said that with the continuous improvement and stability of the market position of Zhongda Dig, as well as the improvement of scale effect, it will further complement the product spectrum and product competitiveness of Xiaodu. In addition, it said that in 2023, the development momentum of mining machinery will be good, with a year-on-year growth rate of 140%;
According to our screening, since March, there are many machinery and equipment companies that have received research attention from many institutions, and the stock price has risen relatively strong and steadily in the near future. For more complete information, please scan the QR code (Table 2) [Free].
The full content can be viewed in the official account of the Securities Market Weekly Market Account.
(The individual stocks mentioned in the article are for example analysis only, and do not make trading recommendations.) ）