Event overview
In February 2022, the national development and Reform Commission issued a series of interpretations of the guiding opinions on accelerating the construction of a national unified power market system.
Core view:
The construction of a unified national power market will open a new situation in the power industry
At present, China’s power resource allocation is in the “transition period from plan to market”, and the power system is in the “transition period of new power system”. The current objectives include: ensuring supply, promoting transformation, improving efficiency, optimizing resource allocation, etc. the characteristics and operation mechanism of the power system are becoming increasingly complex and need to be coordinated urgently.
1. At present, it is the key node for China to build a unified power market. China’s power generation and consumption plan has been gradually liberalized, the proportion of market-oriented electricity has increased significantly, and the allocation mode of power resources has gradually changed from planned to market mode. During the 14th Five Year Plan period, the reform of the power market accelerated, with many market opportunities and broad space.
2. Unify standards and promote the orderly allocation of power resources. Improving the multi-level unified power market system, unifying trading rules and technical standards, and improving the functions of the unified power market system are the urgent needs of China’s current power market. The unified market will promote the orderly allocation and flow of power resources across the country and escort the construction of a new pattern of economic development.
3. It is clearly required to encourage clean energy to participate in market-oriented transactions, and promote the power market and carbon market together. In particular, we should correctly price the green value of new energy, so as to promote the investment, production, trading and consumption of new energy.
The construction of a unified power market will promote the iterative evolution of energy it and pay attention to the energy it industry chain
With the development of energy industry, the leader of energy it industry will run out of the industry β+ Faucet α， We mainly recommend leading enterprises in the intelligent energy it chain:
1. Longshine Technology Group Co.Ltd(300682) : the leader of power sales informatization directly benefits from the construction of new power market. 1) Longshine Technology Group Co.Ltd(300682) has been deeply cultivated in power sales informatization for many years. The construction of new power market is closely related to power sales informatization, and Langxin will take the lead in benefiting. 2) In addition, Longshine Technology Group Co.Ltd(300682) stimulated by the construction of new energy, it has layout in charging pile aggregation platform, energy consumption management and other aspects, and emerging businesses will bring broad space to Langxin.
2. Dongfang Electronics Co.Ltd(000682) : new energy construction promotes the distribution network market pattern or concentration, and intelligent leaders benefit. 1) The development of new energy construction has increased the demand for intelligent distribution network. We believe that the distribution network market pattern will move from decentralization to concentration, and Dongfang Electronics Co.Ltd(000682) as the pioneer of intelligent dispatching and distribution network, the market share is expected to increase and go out of the industry alpha. 2) The company has laid out its energy storage business and has relatively mature capabilities in EMS and other links, which is expected to become the growth elasticity of the company.
Investment advice
In the development of energy, intelligence and digitization are the top priority. It empowerment has been fully reflected in various energy sectors and sub industries. Continue to make core recommendations: energy SaaS leader Longshine Technology Group Co.Ltd(300682) (joint coverage with communication group), distribution network dispatching pioneer Dongfang Electronics Co.Ltd(000682) , domestic energy BIM software leader Beijing Forever Technology Co.Ltd(300365) . Other beneficial targets include: Ygsoft Inc(002063) , State Grid Information&Communication Co.Ltd(600131) , Nari Technology Co.Ltd(600406) , China Southern network technology, Kodak automatic control, Zeyu intelligence, Shanghai Nenghui Technology Co.Ltd(301046) , Zhiyang Innovation Technology Co.Ltd(688191) , Runa Smart Equipment Co.Ltd(301129) , etc.
Risk tips
1) risk that the technological transformation process of new energy power generation is less than expected; 2) The construction of energy informatization is less than the expected risk; 3) Macroeconomic downside risks.
