Index
On Thursday, March 2, 2022, as of the closing, the Shanghai Composite Index fell 0.09% to 348111 points, the Shenzhen Component Index fell 1.09%, the gem index fell 1.51%, and the turnover of the two cities exceeded trillion. Infrastructure related sectors rose or fell, with transportation rising by 3.07%, real estate, building decoration and cement rising slightly, and building materials, glass fiber and construction machinery falling slightly.
Comments
In the case that the concept of conflict between Ukraine and Russia still attracts most funds in the market, the performance of the infrastructure sector today is very good. On the one hand, it is due to low valuation and risk aversion. On the other hand, the two sessions are about to be held. During the period, it is expected to introduce policies related to the infrastructure sector, and the market has certain market expectations for the infrastructure sector. Looking ahead, there is no sign of a short-term end to the Ukrainian Russian conflict. The Federal Reserve may raise interest rates by 25 basis points this month. The market may still be in a wait-and-see state. In the later stage, capital may be allocated to infrastructure and other undervalued sectors and hype some hot topics. From the signals released by the local two sessions, new energy has become a key word in the reports of many governments. The superposition of relevant policies during the two sessions is expected to increase, the long-term growth of the sector can be guaranteed, and new energy infrastructure is still the focus of attention.
Industry dynamics
1. On March 3, the people’s Government of Shandong Province issued the action plan for building a strong marine province. The document pointed out that relying on Binzhou, Weifang and Dongying, we should speed up the construction of 10 million kilowatt wind and water storage integration base on saline alkali beach. Accelerate the development and layout of offshore wind power and photovoltaic power generation, explore and promote the construction of marine energy pilot projects such as tidal current energy and wave energy, and build a comprehensive offshore energy supply system. (Polaris Cecep Solar Energy Co.Ltd(000591) photovoltaic network)
2. On March 2, the National Energy Administration organized and held the national renewable energy development and construction situation analysis meeting in February. The meeting pointed out that the development of wind power photovoltaic had a good start in 2022. In January, the newly installed capacity of wind power photovoltaic in China exceeded 12 million KW, and the consumption and utilization rate of wind and solar power remained at a high level. (Polaris wind power network)
Company dynamics
Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) ( Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) ): announcement of the company’s project bid winning: Recently, the wholly-owned subsidiary of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) group Zhongnan survey, design and Research Institute Co., Ltd. of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) won the bid for Shandong energy 500MW offshore wind power EPC project (hereinafter referred to as “the project”), with a bid winning amount of about RMB 5.63 billion. The project is located in Dongying City, Shandong Province, China. The main contents include survey and design, equipment procurement, manufacturing supervision, construction, etc. The total construction period of the project is 316 calendar days. （iFinD）
Risk warning: the macro policy is not as expected; Raw material prices rose more than expected.
