One week observation:
Nuclear power is expected to rise in the year to restart: AP1000 and EPR three generation of nuclear power is constantly improving.
China nuclear power network June 21st news, the world's first AP1000 unit three gate 1 first critical: three gate 1 set at 2:09 in June 21, 2018 to realize the first critical at 2:09 in June 21, 2018, China's nuclear board chairman Chen Hua previously said that three doors 1 is expected to be put into commercial operation in November this year; second AP1000 units Haiyang 1 approved loading 6 On the afternoon of 21 July, Haiyang 1, the second domestic AP1000 unit, won the first loading approval of unit 1 of the Haiyang nuclear power plant, which was issued by the nuclear safety bureau, and began to be loaded in the late June 21st. This is also the second AP1000 unit in China to obtain loading permission; the world's first EPR unit, Taishan 1, is expected to be connected to the network in July: Taishan The No. 1 unit of nuclear power plant was allowed to be loaded in April 10th and reached critical success in June 6th. At present, the unit is in a low power test platform. It is planned to connect with the external power grid in July and full power operation in the third quarter.
Three gate 1 has progressed smoothly since the first loading in April 29th. It successfully completed the first criticality in June 21st. It is expected to realize grid connected power generation and formally put into commercial operation in the next 5 months. The new nuclear power project followed by AP1000 technology will have no restriction on the examination and approval policy for 168 hours after the three gate 1 grid connected power generation. Approved, the successful loading of Haiyang No. 1 also corroborated our view that the AP1000 project will no longer be hindered by policy factors. The orderly promotion of nuclear power projects has laid a solid foundation for the examination and approval of subsequent nuclear power projects. In the case of nuclear power policy warming and the rapid transmission of nuclear power projects, the domestic nuclear power restart is expected to accelerate and further strengthen in the year of nuclear power. We expect that the next batch of 18 nuclear power generating units that are expected to be approved will basically meet the requirements for nuclear power construction in the past two years. These nuclear power units are Ningde 5, 6, Huizhou 1, 2, Changjiang 3, 4, Zhangzhou 1, 2 and so on 8 units with Hualong No. 1 technology, Shidao Bay 1, 2 and other 2 stations using CAP1400 technology units as well as three gate 3, Shidao, Haiyang, Lufeng, Lufeng, Xu Dabao, etc. The operation of a nuclear power unit. The key points are to recommend the Taiwan Strait nuclear power, the share of the current share, and so on.
Oil clothing: OPEC Vienna conference is expected, oil service is at the bottom of long cycle.
In June 22nd, OPEC Member States reached an agreement to increase the daily output by 1 million barrels, far below the previous proposal by Russia to increase production by 1 million 800 thousand barrels / days, which was affected by the news of 3.48% last week.
The rebalancing of supply and demand based on demand side recovery is the core of driving oil price, and the shift of oil price center makes the capital expenditure of oil clothing increase (equipment purchase and price double strike) is the core logic of the oil service stock. This is much more logical than the rise in the upward drive of oil prices in the second half of 2016, which is expected to exceed OPEC. Oil and clothing companies look at oil supply and demand balance in the long run. The core is to keep an eye on the oil price center. At the current point of time, we think the basic aspect, the recovery of the demand side can be seen long, which brings a solid basic basis for the shift of the oil price center; the performance of the oil service company has a certain lag in the early recovery, reflecting the lag of the quantity and price of the order in the oil price, from the present situation to the excellent. Orders for oil service companies are beginning to pick up, and the valuation is at the bottom from the perspective of PB. Therefore, our conclusion is that the long cycle of oil clothing is at the bottom of the large cycle, and it is also in a cheaper position from the point of view of the stock price. It is suggested that investors should pay more attention to the high quality companies such as Jerry stock.
A week's market review
Last week, the machinery sector fell 6.71%, running the Shanghai and Shenzhen 300 index (-3.85%) and running the gem index (-5.60%).
Industry key recommendation combination
Market adjustment, a number of excellent quality and competitive value growth stocks entered a reasonable interval, the key layout. Hongya numerical control, Zhejiang Dingli, Jack shares, construction machinery; Jerry shares, Sany, Jing Sheng Mechanical and electrical, Taiwan Strait nuclear power, Mag Mitter, precision electronics and so on.
Industry investment strategy: investment new economy - new energy industry, semiconductor industry, industrial robot oil clothing industry: to see the long demand recovery brings the oil price center, and the emphasis on Jerry shares.
Nuclear power industry: big power heavy equipment, AP1000 is allowed to load, the three generation of units is expected to restart. It mainly recommends Taiwan nuclear power, Jiangsu magical power, and so on.
Industrial robots: machine substitutions are unstoppable. The core components are controlled independently, and the opportunity of import substitution industrialization is at hand. We should focus on the industrialization opportunities of independent control and import substitution, and recommend the other parts, such as Elton and double ring transmission.
Value growing stock: subdivision of stealth champion, relying on solid products, perfect management, contact with the spirit of continuous breakthrough, products from low to high-end, market from home to overseas, the recommendation of Zhejiang, Jack shares.
