Good company, good price! The leading stocks of this plate rose to catch up with liquor stocks

category:Finance
 Good company, good price! The leading stocks of this plate rose to catch up with liquor stocks


Different from big consumption, manufacturing products are not common in peoples lives, such as excavators, tower cranes, etc., so the mass base of a shares is congenital deficiency. Lets take a look at which big bull stocks have run out of the manufacturing sector.

The first thing to mention is Hengli hydraulic. Recently, in some securities companies individual stock research reports, Hengli hydraulic has become the benchmarking object, which shows its influence.

Recent weekly trend chart of Hengli hydraulic

Hengli hydraulic main hydraulic cylinder, pump valve based hydraulic parts. According to the statistics of Anxin securities, the CAGR (compound annual growth rate) of the companys operating revenue was 75.3% and the CAGR of net profit was 85.01% from 2015 to 2018. At present, the companys production scale and technical level has ranked among the forefront of the world hydraulic field, and is expected to become the world-class hydraulic parts leader.

Followed by Sany Heavy Industry, is the highest market value of A-share construction machinery stocks.

Recent weekly trend chart of Sany Heavy Industry

Source: wind

Zhejiang Dingli is a leading domestic high-end manufacturing enterprise of intelligent aerial work platform, focusing on high-end manufacturing.

Recent weekly trend chart of Zhejiang Dingli

Source: wind

Compared with the mature markets in Europe and the United States, the number of domestic aerial work platforms per capita is lower and the promotion speed is fast. According to Jingjing Zhihui data, in 2019, 54000 aerial work platforms will be added in China, with a year-on-year increase of about 80%. Guosheng Securities believes that the domestic aerial work platform market is still in the continuous penetration stage, and Zhejiang Dingli, as the industry leader, has fully benefited from total demand growth + arm type proportion increase.

Eddie precision, from invisible champion to in front of the stage.

Source: wind

Aidi precision is the leading enterprise of excavator hydraulic breaking hammer in China. From the industry dynamic point of view, the domestic crushing hammer industry is still relatively scattered. As the leader of domestic crushing hammer, the market share of the company is only about 25%, and the market share of the company still has much room for improvement.

In addition, construction machinery, Guomao shares, Easton, China test testing... The trend of these stocks is commendable, and the underlying fundamentals are also worth digging.

Multiple logic drivers

China is not only a big consumer country, but also a manufacturing country, which has become the cornerstone of the manufacturing sector out of the big bull stocks. The huge market space also makes enterprises have the condition of from small to large.

Industrial policy guidance and support is the biggest catalyst. It can not only drive the outbreak of market demand, but also improve the industry threshold, promote the tail enterprises to clear, and optimize the industry supply pattern.

Source: Industrial Securities Research Report

In addition to quantity growth, policies in recent years focus on quality improvement. Made in China 2025 puts forward: focus on the development of industrial strong foundation project, by 2020, 40% of the core basic parts and key basic materials of construction machinery will be guaranteed independently, and the guarantee rate will reach 70% by 2025; the performance stability, quality reliability, environmental adaptability, service life and other indicators of construction machinery and other manufacturing industry products will reach the advanced level of similar products in the world, and at the same time, it will speed up Intelligent construction machinery and other products research and development and industrialization.

In addition, good companies usher in good prices, a shares are in a big change of valuation restructuring, and high-quality manufacturing stocks have the opportunity to show off.

The main driving force behind the A-share reform is foreign capital, which is accelerating the layout of high-quality leading enterprises in Chinas manufacturing industry. According to statistics, in 2017-2019, the manufacturing industry accounted for three of the top ten sub industries in which the proportion of Lu Gu Tongs allocation increased. Machinery, power equipment, new energy and basic chemical industry, which belong to the manufacturing industry, have all entered the top ten industries with the highest increase in the allocation ratio of land stock connect.

Chinas manufacturing industry has emerged a number of high-quality core assets. At the same time, along with the transition to high quality economic development stage, a number of subdivided manufacturing leaders and invisible champions are being bred. In this context, how to configure the aftermarket?

Industrial Securities strategy research shows that it focuses on three dimensions.

First, from Chinas leading position to the world, manufacturing core assets with global competitiveness. The manufacturing industry is dominated by tob end, and the products of enterprises pursue the ultimate cost performance ratio. Enterprises with technical barriers and cost advantages are more likely to snowball and become core assets.

Second, the core assets of manufacturing industry which are expected to move from China to the world should be subdivided. For this kind of Chinas subdivided manufacturing industry leaders who are expected to go to the world, we can track the key financial indicators such as roe to judge the industry prosperity and the companys operation; at the same time, we should pay close attention to the companys domestic and foreign market share and overseas revenue, grasp its centralization and globalization process, so as to screen the real core assets in the manufacturing industry. Third, foreign investment in similar industries may lead to the invisible champion of manufacturing industry in the future. It has developed a mature industry worldwide, and overseas institutional investors have invested in leading companies in this industry. From the perspective of industry life cycle, there are related industries in China, and there are similar companies with good quality. At this time, we can learn from foreign investment experience. Source: Yang Qian, editor in charge of China Securities Journal_ NF4425

Second, the core assets of manufacturing industry which are expected to move from China to the world should be subdivided. For this kind of Chinas subdivided manufacturing industry leaders who are expected to go to the world, we can track the key financial indicators such as roe to judge the industry prosperity and the companys operation; at the same time, we should pay close attention to the companys domestic and foreign market share and overseas revenue, grasp its centralization and globalization process, so as to screen the real core assets in the manufacturing industry.