Key investment points:
Investment strategy and portfolio. Select individual stocks from the two ideas of fundamentals and valuation, profitability and growth. It is suggested to pay attention to individual stocks with long-term growth and gradually improved profitability but relatively reasonable valuation during the 14th Five Year Plan period. In particular, we should pay attention to whether the growth of individual stocks in 2022 can support the current performance prediction and valuation level. It is recommended to pay attention to Fujian Funeng Co.Ltd(600483) , China National Nuclear Power Co.Ltd(601985) , Shanghai Electric Power Co.Ltd(600021) , Sichuan Chuantou Energy Co.Ltd(600674) , Jilin Electric Power Co.Ltd(000875) , Huaneng Lancang River Hydropower Inc(600025) , Jiangsu New Energy Development Co.Ltd(603693) .
Market review: from December 1 to 21, 2021, public utilities (Shenwan) rose 7.13%, outperforming the all a index by 6.88 percentage points. In terms of sub sectors, thermal power, hydropower, gas turbine power generation, thermal power and new energy power generation changed by 19.91%, 10.73%, 0.4%, 2.63% and 2.82% respectively.
Industry high-frequency data tracking: from January to November 2021, the power consumption of the whole society was 671.8 billion kWh (a year-on-year increase of 3.89%), the national power generation was 654 billion kWh (a year-on-year increase of 0.2%), and the utilization hours of power generation equipment were 3483 hours (a year-on-year increase of 87 hours).
Key industry news and policies: 1) the first batch of units of China’s first flexible DC offshore wind power project are officially connected to the grid; 2) National Energy Administration: by the end of October, the national installed power generation capacity was about 2.3 billion kw, a year-on-year increase of 9%; 3) China’s wind power grid connected installed capacity has exceeded 300 million KW, ranking first in the world for 12 consecutive years; 4) National Development and Reform Commission: in November, the power consumption of the whole society increased by 3.1% year-on-year.
Announcements of key companies: 1) China Yangtze Power Co.Ltd(600900) (600900. SH): the controlling shareholder China Three Gorges group plans to inject the assets (equity) of Wudongde and Baihetan Hydropower Stations into the company. 2) China Yangtze Power Co.Ltd(600900) (600900. SH): several power purchase and sales contracts have been signed for the hydropower stations of the company. 3) Jiangsu New Energy Development Co.Ltd(603693) (603693. SH): the controlling shareholder intends to change its commitment to avoid horizontal competition, promise that the controlling shareholder or other enterprises controlled by it will first invest, acquire or cultivate, and entrust these businesses or assets to Jiangsu New Energy Development Co.Ltd(603693) management at the fair market price. After the relevant businesses or assets meet the conditions for injection of Jiangsu New Energy Development Co.Ltd(603693) , they will comply with relevant laws, regulations and regulatory rules and Jiangsu New Energy Development Co.Ltd(603693) On the premise of interests, give priority to transferring relevant businesses or assets to Jiangsu New Energy Development Co.Ltd(603693) at a fair price.
Risk warning: the growth rate of power consumption in the whole society is lower than expected; The repeated epidemic situation led to the planned resumption of work and production less than expected; The downward trend of power coal price is less than expected; Market trading spreads fluctuated sharply.
