On August 30, affected by the huge demand potential of my country's machine tool industry, the A-share industrial mother machine sector continued to pick up. As of press time, Hengfeng Tools (300488.SZ), Huadong CNC (002248.SZ), Huachen Equipment ( 300809.SZ), Genesis (300083.SZ), Huaming Equipment (002270.SZ) and other stocks rose.

New Era Securities mentioned that the heavy policy catalyzed the development of the "industrial host machine". The expanded meeting of the SASAC Party Committee emphasized the strengthening of key core technologies for industrial mother machines, high-end chips, new materials, new energy vehicles, etc.; the 14th Five-Year Plan accelerates the research and development and industrialization of high-end CNC machine tools and intelligent processing centers; supports “ specialization, special innovation "Enterprise development is concentrated in industries such as new generation information technology and high-end equipment manufacturing.

Pacific Securities believes that the application fields of CNC machine tools are very wide, mainly including aerospace, shipbuilding, automobiles, construction machinery, electrical equipment, industrial molds, etc. The higher the level of numerical control, the stronger the overall national manufacturing strength. According to the National Bureau of Statistics, the numerical control rate of my country has increased from 28.38% in 2013 to 43% in 2020. Although the numerical control rate of machine tools in my country has increased significantly, it is compared with foreign countries. Developed countries, such as Germany and Japan, have a numerical control rate of over 80%, while my country's numerical control rate is still at a relatively low level, and there is still ample room for improvement in the future. In addition, the replacement cycle of machine tools is generally 10 years, with the highest demand in 2011, and the replacement cycle will usher in 2021. Under the trend of incremental substitution and stock renewal, the demand potential of my country's machine tool industry is huge.