On February 21st, the automotive parts sector showed a very active trend, with an overall increase of 2.23%, ranking among the top in terms of growth among major sectors. Among them, Huayang Transmission and Zhongjie Precision increased by more than 20%, while Weidi Shares, Hengli Industry, Zhejiang Liming, Heli Technology, Langbo Technology, and Shenglong Shares increased by more than 10%. The institution stated that under the clear policy guidance of China's development of new energy going global, overseas markets are expected to contribute incremental growth to the direction of independent new energy.

Overseas markets are expected to contribute incremental growth

In addition to the target companies with the highest stock price increases mentioned above, companies such as Haowu Shares, Changchun Yidong, Xiangyang Bearing, Disheng Li, Taixiang Shares, Mingyang Technology, Tuopu Group, and New Coordinates also performed well on the 21st, with stock prices increasing by 9.96%, 9.96%, 9.94%, 9.92%, 9.46%, 7.33%, 7.31%, and 6.76% respectively.

On February 7th, the website of the Ministry of Commerce published the "Opinions of the Ministry of Commerce and 9 Other Units on Supporting the Healthy Development of Trade Cooperation in New Energy Vehicles", mainly proposing 18 policy measures from six aspects: enhancing international business capabilities and levels, improving the international logistics system, and strengthening financial support.

“ The Ministry of Commerce has issued a document supporting the export of new energy vehicles, and overseas countries are expected to contribute new flexibility. ” Everbright Securities believes that under the clear policy guidance of developing new energy overseas in China, independent brands will strengthen their overseas market layout, enhance overseas consumers' awareness of independent brands through the establishment of overseas research institutes, strengthening cooperation with local distributors according to local conditions, and localized production models. Overseas markets are expected to continue to contribute sales growth to independent new energy.

According to statistics from the China Association of Automobile Manufacturers, in 2023, automobile exports will reach a new high, becoming an important driving force for the growth of automobile production and sales. In December 2023, automobile exports reached 499000 units, a month on month increase of 3.5% and a year-on-year increase of 54.3%. In 2023, automobile exports reached 4.91 million units, a year-on-year increase of 57.9%.

Focus on opportunities in the automotive parts sub sector

In terms of individual stocks, Huayang Transmission achieved a limit up of 30cm on the 21st, with a full day turnover rate of 27.36% and a volatility of 29.46%, and a full day transaction volume of 100 million yuan. Huayang Transmission focuses on the business of commercial vehicle transmission components and is a second tier supplier in the commercial vehicle transmission industry. Its downstream customers mainly include vehicle manufacturers and first tier suppliers in the industry. The top five clients of the company include Weichai Holdings Group, Dongfeng Motor, Merison, subsidiary of listed company Wuhan Fangu, Fujing Electronics, and Ningbo Zhuotai.

Zhongjie Precision also achieved a 20cm daily limit up on the 21st. The company's main business is the research and development, production, and sales of automotive precision components. Zhongjie Precision recently disclosed a share repurchase plan, in which the company plans to repurchase shares with its own funds of no less than RMB 10 million (inclusive) and no more than RMB 15 million (inclusive) at a repurchase price of no more than RMB 22 per share (inclusive). The repurchased shares will be used to implement equity incentives or employee stock ownership plans.

Regarding the development prospects of the automotive parts industry, a market insider told a reporter from Volkswagen Securities News on the 21st:; Under the clear policy guidance of new energy going global, this will provide comprehensive and multi-level support and guarantee for the trade cooperation of new energy vehicles, thus opening up a large channel for multiple ports to go global. Overseas markets are expected to continue contributing sales growth to independent new energy, and opportunities in the automotive parts segment will significantly increase. ”

In terms of investment advice, Ni Yujing, an analyst at Everbright Securities, suggests focusing on intelligence and robotics in the component segmentation sector. For intelligence, she suggests focusing on Naishite, while for robotics, she suggests focusing on Best and Beite Technology; Tesla's industry chain recommends following Fuyao Glass and Aikedi; Huawei Xiaomi industry chain suggests paying attention to Bojun Technology and Wuxi Zhenhua.

Source: Pengpai News· Pengpai Account· media

Image source: Visual China