Market review: from February 13 to February 18, the power sector (882528. WI) fell 2.22%, the CSI 300 index rose 1.08%, and the power sector lost 3.31 percentage points to the CSI 300 index. Since the beginning of 2022, the power sector has fallen by 6.58%, the Shanghai and Shenzhen 300 index has fallen by 5.85% over the same period, and the power sector has lost 0.73 percentage points to the market since the beginning of the year. In terms of molecular sectors, the thermal power, hydropower and gas sectors (CITIC index) rose and fell by – 3.22%, – 1.89% and 0.74% respectively from February 13 to February 18.
Qinhuangdao coal price fell 0.99% month on month, up 47.60% year-on-year
On February 18, the market price of 5500 kcal thermal coal in Qinhuangdao was 1000 yuan / ton, down 0.99% month on month and up 47.60% year on year; On February 18, the comprehensive average price of 5500 kcal of Bohai Rim thermal coal index was 740 yuan / ton, down 2.50% month on month and up 19.94% year-on-year. In terms of futures, the thermal coal contract delivered by Zhengzhou Commodity Exchange in May 2022 quoted 812 yuan / ton on February 11, 188 yuan / ton higher than the spot price.
QinGang inventory fell 0.60% month on month and 9.80% year-on-year
In terms of coal inventory, as of February 20, the inventory of QinGang port was 4.97 million tons, a month on month decrease of 30000 tons, a decrease of 0.60%, a year-on-year decrease of 540000 tons, a decrease of 9.80%. On Guangzhou Port Company Limited(601228) February 20, the inventory was 2.045 million tons, a month on month decrease of 185000 tons, a decrease of 8.30%, and a year-on-year decrease of 1.772 million tons, a decrease of 46.42%.
Weekly views and investment suggestions
Recently, the national development and Reform Commission, the Ministry of industry and information technology, the Ministry of Finance and other departments jointly issued the notice on printing and Distributing Several Policies to promote the steady growth of industrial economy. The notice proposed to implement the construction of large-scale wind power photovoltaic bases in desert Gobi desert areas, encourage the development of distributed photovoltaic in the Middle East, and promote the development of offshore wind power in Guangdong, Fujian, Zhejiang, Jiangsu and Shandong. Promote the transformation and upgrading of coal-fired power units with a coal consumption of more than 300g standard coal / kWh, and implement the flexible transformation of coal-fired power units in northwest, northeast and North China. We believe that new energy investment in electric power is an important starting point for growth. New energy investment mainly includes two forms: centralized large bases in the three northern regions and distributed energy in the Middle East. The importance of offshore wind power investment in Guangdong, Fujian, Zhejiang, Jiangsu and Shandong is also very prominent. New energy power investment will play an important role in China’s steady growth wave, and the installation speed of new energy power operators is expected to be improved. In addition, the flexibility transformation of coal motor unit will continue to be promoted, and it will gradually evolve into a power auxiliary service provider in the future. In terms of electricity, we are still optimistic about the targets of thermal power transformation and new energy operation, including Shanghai Electric Power Co.Ltd(600021) , Huaneng Power International Inc(600011) , Jilin Electric Power Co.Ltd(000875) , Fujian Funeng Co.Ltd(600483) and China Resources Power. Pure new energy operation company suggests paying attention to Zhongmin Energy Co.Ltd(600163) . In addition, we also recommend Suwen Electric Energy Technology Co.Ltd(300982) integrated enterprise for operation and maintenance of intelligent power distribution projects, and it is suggested to pay attention to China Yangtze Power Co.Ltd(600900) that wubai hydropower station is expected to inject Huaneng Lancang River Hydropower Inc(600025) to improve the profitability of the company and benefit from the continuous improvement of market electricity prices in the province. In terms of natural gas, we recommend increasing gas sales, and urban gas companies with their own LNG terminals, ENN energy, Shenzhen Gas Corporation Ltd(601139) .
