China Specialist, Auto and Industrial Specialist

Victoria Li

Thematic (Sector/Industry)

With the boost on New Infrastructure from Central Government, rail sector, power T&amp;D (transmission and distribution) sector, automation &amp; robot sector would have their new investment opportunities in the next few years. China's national rail investment 2020E is revised up to Rmb815bn lately, vs. guided Rmb800bn at end-2019and would go up further. Inter-city high speed rail lines would gain the most investment. Moreover, a total of 2639km new urban rail lines be delivered in 2020-2021E, vs. 969km in 2019. CRRC (1766.HK) and CRSC(3969.HK) are the key players2020E investment budget for UHV power T&amp;D projects is Rmb181bn now, from initial Rmb33bn at beginning of this year. According to latest plans, 3 UHV AC lines and 3 HUV DC lines  would be completed in 2020-2021, 5 AC lines and 2 DC lines would be completed in 2021-2023. Additional 3 DC line projects are pending on approval. In this area, we favor Pinggao (600312.CH) as the leader of 800-1000kV GIS supplier, NARI(600406.CH) as the leader of converter valve supplier for UHV DC projects. High voltage transformer suppliers, TEBA (600089.CH),Baoding Tianwei (600550.CH) and XD Electric(601179.CH) would also be the key beneficiaries. According to IFR, China's industrial robot density is below the world average. Recent Covid-19 crisis and related stimulus is encouraging increasing use of industrial robot and automation equipments.  Key beneficiaries in this area include: Estun (002747.CH) and Siasun (300024.CH) as leading local manufacturer of industrial robots, Haitian (1882.HK) as industrial automation leader with advantage on import substitution.

With the boost on New Infrastructure from Central Government, rail sector, power T&amp;D (transmission and distribution) sector, automation &amp; robot sector would have their new investment opportunities in the next few years. China's national rail investment 2020E is revised up to Rmb815bn lately, vs. guided Rmb800bn at end-2019and would go up further. Inter-city high speed rail lines would gain the most investment. Moreover, a total of 2639km new urban rail lines be delivered in 2020-2021E, vs. 969km in 2019. CRRC (1766.HK) and CRSC(3969.HK) are the key players2020E investment budget for UHV power T&amp;D projects is Rmb181bn now, from initial Rmb33bn at beginning of this year. According to latest plans, 3 UHV AC lines and 3 HUV DC lines  would be completed in 2020-2021, 5 AC lines and 2 DC lines would be completed in 2021-2023. Additional 3 DC line projects are pending on approval. In this area, we favor Pinggao (600312.CH) as the leader of 800-1000kV GIS supplier, NARI(600406.CH) as the leader of converter valve supplier for UHV DC projects. High voltage transformer suppliers, TEBA (600089.CH),Baoding Tianwei (600550.CH) and XD Electric(601179.CH) would also be the key beneficiaries. According to IFR, China's industrial robot density is below the world average. Recent Covid-19 crisis and related stimulus is encouraging increasing use of industrial robot and automation equipments.  Key beneficiaries in this area include: Estun (002747.CH) and Siasun (300024.CH) as leading local manufacturer of industrial robots, Haitian (1882.HK) as industrial automation leader with advantage on import substitution.

China Capital Goods: New Infrastructure, New Opportunities!

China

Estun Automation Co., Ltd. develops and manufactures mechanical equipment. The Company focuses on metal forming and electro-hydraulic robotic machines. Estun operates in China.

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Estun Automation (002747 CH)

China Capital Goods: New Infrastructure, New Opportunities!

With the boost on New Infrastructure from Central Government, rail sector, power T&D (transmission and distribution) sector, automation &...

Victoria Li

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