Event: January 19, the Shanghai Composite Index rose 3.22%, Shenzhen Component Index rose 3.41%, the GEM Dow rose 3.07 percent; industry sector, the SWS machinery and equipment sector rose 4.57% (weighted average market capitalization), in all sector rose in second place.

Comments: The bottom of the market is expected to be confirmed, pre-stagflation machinery sector is expected to get excess returns. We judge the market premenstrual sell quickly release
Related stock movements

    11.19 + 0.151.36% Chee Sing shares

    Oriental Precision 10.53 + 0.111.06%

    Huanghe Whirlwind 18.49-0.02-0.11%

    Robot 54.43-0.43-0.78%

    Star technology 17.80-0.24-1.33%

After the risk, the market is expected to be confirmed at the bottom. Combined with our macro-policy group in January configuration monthly in point: "Based on the January market Xianyihouyang judgment, ...... on the other hand, in the mid to late rebound phase after Yang, growth and venture capital industry Class topics will be based on the idea of the spear rebound: sector allocation overweight machinery, military, electronics, food "

Industry 4.0 solid fundamentals, mechanical industry recommends an overweight Industry 4.0 Related targets. According to the Chinese Robot Industry Association latest statistics, the first half of 2015 domestic industrial robots were sold 11275 units, up 76.8%, on a comparable basis sales growth of 27%, it is expected to total annual sales to more than 22,000 units, an increase of about 30% .

Additionally, the service robotics industry has been in the outlet. Technavio latest report shows that from 2012 to 2016 global sales of service robots compound growth rate has reached 19% in 2016 will reach 6.07 million units. And promote the use of service robots are dependent on the particular application scenario, local manufacturers more profound understanding of customer needs, we have a stronger competitive advantage.

Combined with pre-adjustment and valuations, industrial robots recommendation subject, service robots and other recommended areas of the East Seiko star technology. Industrial robots, we recommend Orient Seiko, Chee Sing shares, Huanghe Whirlwind, field riland shares and soft control shares, service robots, we recommend the star technology.

Risk Warning: market systemic risk; the relevant underlying strategy to promote lower than expected.