China's power industry will usher in a new space for development

On the 20th, the Shanghai Composite Index opened lower and went lower. As of the close, the Shanghai Composite Index fell 1.38%. The relatively poor performance of the broader market made the power sector perform well. The market research center and great wisdom data show that the power sector rose by the top, with a growth rate of 0.08%. There are 55 listed companies in the power sector, of which, there are 16 rising stocks, accounting for 29.09% of all listed companies in the sector.

Analysts believe that with the further development of the industry trend, this year's industry reform is expected to start again, and the reform of related industry policies will bring more room for expansion of the power industry.

The first batch of five large-scale hydropower project approval and development and reform commissions recently approved five large and medium-sized hydropower projects in the Dadu River and Jinsha River basins. The cumulative installed capacity of the project reached 5.8 million kilowatts, and the cumulative annual power generation is expected to reach 24.764 billion kwh. The five projects belong to Guodian Group, Huaneng Group, Huadian Group and China Power Construction Group, with a dynamic investment of over 60 billion yuan.

The projects approved by the National Development and Reform Commission are concentrated in the middle and upper reaches of the Dadu River and Jinsha River areas, and many of them have started construction during the “Eleventh Five-Year Plan” period. Guodian Group expects the first unit of the pillow-pillar-class first-stage hydropower station to be developed in 2013. Build electricity.

Zhang Boting, deputy secretary-general of the China Association of Hydroelectric Engineering, said that the above projects had started construction during the “Eleventh Five-Year Plan” period, but they had not been approved due to environmental assessment, immigration and other issues. After approval, some units are expected to generate electricity next year. Zhang Boting also explained that due to the rising cost of environmental assessment and migration, the dynamic investment of hydropower projects is much higher than planned investment.

Founder Securities believes that the overall economic performance of the power equipment sector can still be maintained, and we are particularly optimistic about the hydropower and distributed energy equipment that will enter the boom cycle. From the perspective of medium-term industry investment opportunities, Premier Wen Jiabao’s government work report clearly stated that it is necessary to actively develop hydropower, water and electricity price reforms in Guizhou break ice, and the state clearly proposes that strengthening financial support for water conservancy construction and other favorable factors indicate that hydropower is about to enter the golden period, and the installation approval for inflection points and equipment The demand inflection point will be established in 2012.

It is expected that the electricity growth rate will be 8.11% in March

In January-February, the total electricity consumption of the entire country reached 749.7 billion kWh, an increase of 6.7% year-on-year, and the growth rate has fallen more than that of the same period of last year. In February, electricity consumption was 386.3 billion kWh, a year-on-year increase of 22.9%, and the growth rate was substantially higher than that in January. Including: Industrial electricity consumption increased by 4.83% year-on-year, total electricity consumption of the tertiary industry increased by 10.27%, and cumulative electricity consumption of urban and rural residents increased by 14.90% year-on-year.

In the January-February period, from the perspective of the growth of electricity consumption in various regions, most of the provinces whose electricity consumption increased more than the national average (6.7%) were those with fast economic development in western provinces and heavy industries, such as Xinjiang. Ningxia, Qinghai, Guizhou, Henan and Shanxi provinces. In January-February, the provinces with lower electricity growth rates were mainly located in eastern and northeastern China, such as Liaoning, Shanghai, Fujian, Jiangxi, and Zhejiang.

Since the third quarter of last year, the growth rate of industrial economy began to slow down. It is noticed that the growth rate of production of some key power industries has dropped significantly, resulting in weaker electricity demand. At present, the demand for electricity in the downstream industry remains low, but The decline in electricity consumption in January and February was partly due to the Spring Festival factor.

Changjiang Securities believes that combined with historical data, it is expected that the monthly electricity growth rate in March will be 8.11%. The reform of the electricity price system is the main theme for the development of the electric power industry in the next two years. CCB focuses on Huaneng Power International and Guodian Power. In addition, this year's China's power structure adjustment has entered the system optimization stage, and the rapidly growing sub-industry leaders in the future will benefit significantly, including Kaidi Power, Shanghai Electric Power, Hubei Energy, SDIC Power, and Guodian Power.