Follow up comments
On December 8, 2021, the Shanghai Composite Index closed at 3637.57 points, up 1.18%; The Shenzhen Component Index closed at 14964.46 points, up 1.82%. The Chongqing composite index, which we focus on, closed at 4002.66 points, up 1.10%; Sichuan composite index closed at 10106.24, up 2.40%. The top three stocks of Listed Companies in Sichuan and Chongqing were: Chengdu Xiling Power Science & Technology Incorporated Company(300733) (300733, 11.87%), North Chemical Industries Co.Ltd(002246) (002246, 10.06%), Casin Real Estate Development Group Co.Ltd(000838) (000838, 10.05%). The 42 companies we focused on rose by an average of 1.52%, of which the top three stocks were: Sichuan Haite High-Tech Co.Ltd(002023) (002023, 9.98%), Sichuan Crun Co.Ltd(002272) (002272, 4.77%), Chongqing Fuling Zhacai Group Co.Ltd(002507) (002507, 4.58%). By industry, the top three sectors in Sichuan and Chongqing are textile and garment (+ 3.95%), transportation (3.29%) and national defense industry (+ 3.02%).
The 10th plenary session of the 11th CPC Sichuan Provincial Committee deliberated and adopted the decision of the CPC Sichuan Provincial Committee on promoting the high-quality development of green and low-carbon advantageous industries under the guidance of achieving the goal of carbon peak and carbon neutralization, and announced that it will fully serve the national carbon peak and carbon neutralization strategy, show the new role of green development, seize the opportunity of green and low-carbon transformation and cultivate new momentum of economic growth. Sichuan is rich in clean energy resources. According to statistics, the exploitable capacity of hydropower resources technology in Sichuan is 148 million KW, the exploitable capacity of photovoltaic technology is 80 million KW, and the exploitable capacity of wind energy technology is 18 million KW. In terms of hydropower, with the completion and operation of several hydropower stations during the “14th five year plan” in the future, the hydropower industry in Sichuan will maintain steady growth, and the performance of hydropower related enterprises in Sichuan and Chongqing will continue to be realized. At the same time, wind power and photovoltaic, as powerful supplements to hydropower, will become the main options to replace thermal power in Sichuan. During the “14th five year plan” period, it will usher in rapid development and drive the development of manufacturing enterprises in the upstream, middle and downstream of relevant industrial chains in Sichuan and Chongqing. In terms of hydrogen energy, Sichuan and Chongqing have started the trial operation of hydrogen energy buses, explored the road of hydrogen energy commercialization, promoted the construction of important infrastructure for hydrogen energy application scenarios such as hydrogen stations and storage facilities, and promoted the improvement of hydrogen energy technology. In the future, hydrogen energy is expected to become a new driving force for the development of clean energy source industry in Sichuan and Chongqing.
Industry highlights
1. Sichuan Provincial Development and Reform Commission officially issued a notice and decided to implement the new TOU price mechanism from January 1 next year. At the same time, the notice also gives three periods, implementation scope, implementation mode and floating proportion of peak, level and valley. According to the notice, the electricity price in the peak period rises by 60% on the basis of the flat electricity price, and the electricity price in the low period rises by 60% on the basis of the flat electricity price, and the price difference ratio between peak and flat is 1.6:1:0.4. Government funds, surcharges and basic electricity charges will not participate in floating. The implementation scope is for large industrial users who implement time-of-use electricity price, and the peak period electricity price will rise by 20% on the basis of peak period electricity price. (China News Network)
2. Chongqing municipal government held a press conference on Chongqing’s “smart city management” and the launch of Jiangbei District smart city management 4.0 system. At present, all 41 districts and counties in Chongqing (including Liangjiang New Area, high tech Zone and Wansheng Economic Development Zone) have completed the construction of digital urban management platform. The next step will be to build an urban “intelligent” management system with the goal of “one network and unified management” for comprehensive urban governance, “one screen Overview” for urban operation safety, integration of “one key linkage” for intelligent dispatching, and “one end service” for the convenience and benefit of the people. (China News Network)
Company dynamics
Chongqing Shunbo Aluminum Co.Ltd(002996) (002996): issue the announcement on the progress of transferring part of the equity of the holding subsidiary and obtaining the business license.
Bank Of Chongqing Co.Ltd(601963) (601963): issue the announcement on the implementation of dividend distribution of overseas preferred shares.
Risk tips: economic recovery is lower than expected, covid-19 outbreak risk, raw material price fluctuation risk.
