Key investment points:
Market review: Shenwan electrical equipment industry fell 1.59% last week, 4.74 percentage points lower than Shanghai and Shenzhen 300 index, ranking 26th among Shenwan’s 28 industries. The first three stocks in the electrical equipment sector were Changzhou Shenli Electrical Machine Incorporated Company(603819) , Northeast Electric Development Company Limited(000585) and Yingkou Jinchen Machinery Co.Ltd(603396) respectively, and the three companies increased by 20.68%, 18.88% and 18.56% respectively. In terms of valuation, as of December 10, 2021, the pettm of electrical equipment sector was 53.66 times and the Pb TTM of electrical equipment sector was 6.49 times.
Weekly view of electrical equipment industry: in the past week, polysilicon prices have decreased, silicon wafer, battery chip and component prices have decreased, and the cost pressure in the middle and lower reaches of the industrial chain will gradually improve. With the further release of new polysilicon production, it is expected that polysilicon prices will continue to decline in the short term, the overall operating rate of the industry will gradually increase, and the downstream demand will continue to pick up. The central economic work conference was held from December 8 to 10. It is necessary to scientifically assess that the new renewable energy and raw material energy consumption will not be included in the total energy consumption control, and create conditions to realize the transformation from “double control” of energy consumption to “double control” of carbon emission and intensity as soon as possible. This time, a new evaluation mechanism is proposed, which will promote high energy consuming enterprises to use more renewable and clean energy, Encourage and accelerate the development of new energy. It is recommended to pay attention to Longi Green Energy Technology Co.Ltd(601012) (601012); Tongwei Co.Ltd(600438) (600438); Sungrow Power Supply Co.Ltd(300274) (300274); Flat Glass Group Co.Ltd(601865) (601865); Hangzhou First Applied Material Co.Ltd(603806) (603806); Cecep Solar Energy Co.Ltd(000591) (000591).
Risk warning: macroeconomic fluctuations affect downstream demand; The price of the industrial chain has risen sharply; Risks such as intensified industry competition; Electricity demand is lower than expected; The construction of new energy power generation is less than expected.
