Sichuan caizhou viewpoint
Coal price control, rising electricity prices, and thermal power profits are expected to be repaired. Recently, relevant enterprises in the power sector have successively disclosed performance forecasts for 2021. From the perspective of performance, thermal power enterprises have a large loss, Huaneng Power International Inc(600011) it is expected that the net profit attributable to the shareholders of the company will be - 9.8 billion yuan to - 11.7 billion yuan in 2021; Huadian Power International Corporation Limited(600027) it is estimated that the annual performance in 2021 is expected to achieve a net profit attributable to the shareholders of the listed company of - 4.5 billion yuan to - 5.3 billion yuan. In 2021, the supply and demand of coal was unbalanced, and the coal price continued to operate at a high level, resulting in large-scale losses for thermal power enterprises. Since January, a new round of rise in coal prices has also put greater pressure on the operation of thermal power enterprises. However, with the interview of some coal enterprises by the national development and Reform Commission and the national energy administration, the demand for coal in China's heating season has decreased, and the coal price is expected to be effectively controlled. In addition, since January 1, 2022, Jiangsu, Gansu, Jiangxi and other provinces have also implemented new electricity price policies, raised industrial and commercial electricity prices and improved the time of use electricity price mechanism. The rise of electricity price will help power enterprises improve their profitability.
The goal of new energy construction is clear, and the relevant power supporting facilities are constantly improved. Clean energy power generation is still strongly supported by policies, new energy supporting policies are constantly issued, and power enterprises are actively promoting the construction of new energy projects. By 2025, 2030 and 2060, the proportion of non fossil energy consumption in China will reach more than 20%, 25% and 80% respectively. Recently, the "counting from the east to the west" project was officially launched. Previously, the "14th five year plan" digital economy development plan issued by the State Council proposed that the digital economy will move towards a comprehensive expansion period by 2025. The vigorous development of digital economy will effectively improve the use efficiency of new energy and empower the transformation and upgrading of power enterprises.
Market performance in one week
This week, the power industry index fell 1.88%, the Shanghai index rose 0.80%, and the Shanghai and Shenzhen 300 index rose 0.75%. Among the sub sectors, the thermal power index fell by 2.47%, the hydropower index fell by 2.30%, the photovoltaic power index rose by 2.59% and the wind power index fell by 1.61%.
Industry dynamics
Shenzhen plans to implement financial subsidies for new photovoltaic projects: Recently, Shenzhen Municipal Development and Reform Commission issued several measures on vigorously promoting distributed photovoltaic power generation (Exposure Draft). According to the exposure draft, Shenzhen plans to implement financial subsidies for new photovoltaic projects. The approval process has been completed within the administrative region of the city and will be completed from January 1, 2022 to December 31, 2026. Photovoltaic projects with grid connected measurement will be included in the scope of subsidies after being reviewed by the development and reform department.
Company announcement
Longyuan electric power (001289): Longyuan Electric Power Group Co., Ltd. completed 5242551 megawatt hours of power generation according to the consolidated statement in January 2022, a year-on-year decrease of 15.29% compared with the same period in 2021.
Risk tips: the epidemic situation fluctuates beyond expectations and the price of raw materials fluctuates sharply.
