Newsletter summary

Driven by the policy, the scale of investment in industrial equipment in 2027 is expected to increase by more than 25% over 2023, and investment opportunities for equipment renewal will improve throughout the year. Central state-owned enterprises are leading, focusing on "getting rid of the old and building the new" and "green manufacturing". The process industry will be the first to benefit, driving capital expenditure of more than 100 billion yuan. Recommend sub-field leader Bolong technology, Huarong shares, etc., focus on the risk policy landing is not as expected.

Text of news flash

The policy drives the renewal of equipment and injects vitality into the investment throughout the year [policy is implemented, and investment opportunities for equipment renewal are expected throughout the year]. As an important measure of counter-cyclical regulation, equipment renewal has made remarkable achievements in promoting economic growth and investment expansion. This renewal not only promotes industrial upgrading and supply-side structural reform, but also is seen as a key way to cultivate new quality productive forces. According to forecasts, the relevant investment opportunities will continue until the end of the year. In view of the local government's implementation of the policy, the pace of equipment renewal will be accelerated. Policy makers setPennbattle34000dxBy 2027, the scale of equipment investment in the industrial sector needs to achieve a growth target of more than 25% compared with 2023, and the average annual compound growth rate is expected to be 5%.Pennbattle34000dx.7 per cent, significantly higher than the growth rate of about 1 per cent between 2016 and 2023. [equipment renewal will be led by central state-owned enterprises, with "removing the old and building the new", "reducing energy consumption and improving efficiency" and "green manufacturing" as the core. The process industry is expected to be the first batch of beneficiaries, and equipment updates are expected to be transferred upstream along the supply chain, in the order of complete sets of equipment, spare parts and general manufacturing. [the process industry will become the first beneficiary of equipment renewal, driving capital expenditure of more than 100 billion yuan]. Key industries have strong capital strength and clear renewal needs, such as PetroChina's cash reserves of more than 250 billion yuan, asset-liability ratio of less than 50%, there is room for further leverage. Under the background of saving energy and reducing consumption and stringent safety requirements, the demand for equipment renewal in the process industry is surging. Under the dual-carbon target, relevant policies promote the chemical industry to carry out energy conservation and emission reduction transformation, such as the notice issued by the National Development and Reform Commission and other departments, listing 27 new products or facilities into the key energy use catalogue. [the digital transformation of the process industry is accelerated, and the level of intelligence is further improved]. The policy goal is that by 2027, the popularization rate of digital R & D and design tools and the numerical control rate of key processes in industrial enterprises above scale will exceed 90% and 75% respectively. Many links of the process industry have entered the equipment renewal cycle. Involving combustion furnaces, pressure vessels, industrial boilers and other equipment, it is expected that under the promotion of the policy, the renewal cycle will be advanced. [the investment perspective is optimistic about the leading enterprises in all segments of the process industry]. These enterprises are not only expected to benefit from downstream capital expenditure driven by equipment upgrading, but also have the opportunity to increase market share and expand the international market through their own competitiveness. [key recommended enterprises include Bolong Technology, Huarong (603855), Seagull (603269), Bosch (002698), Kexin Mechatronics (300092)]. At the same time, Chuanyi shares (603100), Niuwei shares (603699), Zhuoran shares, Jingjin equipment, CICC Environment (300145), Lingxiao pump Industry (002884), Wujin stainless (603878) and other enterprises will also benefit from it. [risk tips cover policy strength and landing progress, as well as the development of the petrochemical industry].