Guoxin Securities issued in December 4th Machinery Industry Research Report, the report is as follows:

The traditional industry: update demand leading persistent, leading the company performance flexibility.

The shift of economic growth, the adjustment of economic structure, extensive production capacity on the end of the era, the traditional equipment industry by the logic of incremental demand into the stock update requirements, feature updating demand is good continuity, elastic co..

This equipment is dominated by the expansion cycle update demand, industry competition pattern has been optimized in the past 5 years the market clearing, leading the company's market share increased significantly, the revenue side shows better elasticity; profit side, after the 2017 balance sheet after clearing, 2018 is expected to go, the release of the performance is expected to exceed revenue growth; from the valuation point of view, leading the company's competitive position, strengthen the global competitiveness is expected to bring a premium so as to enhance the competitiveness of the central valuation, valuation, double-click the market ushered in the performance.

Industry: the development of advanced manufacturing industry, upstream equipment capital spending ushered in the peak.

The development of advanced manufacturing industry, upstream equipment industry ushered in the peak of capital expenditure; structure on the market share is expected to increase as the downstream industry support and promotion. The rise of high-speed rail industry chain is one of the most successful cases of national leading industry support, but also to our interpretation of the growth path of process industry rise from midstream to downstream products to equipment spare parts and materials in the upstream of the rise. From the current point we conclude that industry is expected to replicate the success of industry: high iron panel industry chain, the new energy industry chain, pay attention to the semiconductor industry chain.

The trend from Japan to Korea and Taiwan panel production to the mainland is irreversible, panel industry three years of investment expansion in the future to determine the basic panel manufacturers to BOE led the rise, the related links of the industry chain ushered in the great development opportunities, good precision electronics, Chi Yun shares etc..

New energy vehicles is a strategic industry supported by the state, the ability of power battery as a core part of domestic battery manufacturers already have the global competition, the first power battery manufacturers continued expansion, pulling equipment cycles in lithium battery; lithium battery industry structural overcapacity, the survival of the fittest, improve industry concentration. A battery factory bound about lithium battery equipment of the leading companies.

Chinese semiconductor is the world's largest consumer market, with the capacity to gradually transfer Chinese, upstream semiconductor equipment import substitution opportunities ushered in a good policy environment, create the superposition state support, Chinese semiconductor equipment industry chain company ushered in an excellent opportunity for development, not to the local semiconductor equipment manufacturers to replace the huge space.

Robust growth stocks: leading sub share expansion of Alfa.

Segments of the market is relatively stable industry invisible champion is a representative enterprise Chinese manufacturing, characteristics of this kind of enterprises are private enterprises, sufficient incentives, excellent management, high operating efficiency, the growth path of these companies are products from low-end to high-end market, from domestic to overseas, the typical index is the expansion of the market share. Zhejiang Dingli shares, Jack recommended, heroic technology, Connie Electromechanical, the Yellow River cyclone.