Market review: this week, the public utilities (Shenwan) industry index rose by 0.83%, outperforming the Shanghai and Shenzhen 300 index by 1.5%, and the sector performance was stronger than the market. Among the fine-grained industries of the environmental protection industry, the fine-grained industries of the environmental protection industry, the increase of atmospheric governance ranked first. Among the fine-grained industries of the public industry, the increase of thermal power and clean energy power generation ranked first.
Special research: China’s new round of power market-oriented reform was launched in 2015. The guidance on power market-oriented reform defined the focus and direction of this round of power reform, and subsequently launched a number of supporting policies to promote the reform of power market-oriented trading in all aspects. In September 2021, the pilot of green power trading was launched to restore the commodity attribute of green power and boost the consumption of new energy power. During the introduction and implementation of the policy, the scale and proportion of China’s power market-oriented transactions have been rising. With the pilot practice in the early stage, the conditions for large-scale electricity market-oriented trading are available. On October 15, 2021, the national development and Reform Commission issued the notice on further deepening the market-oriented reform of on grid electricity price for coal-fired power generation. China’s power market-oriented reform has taken an important step, and high energy consuming enterprises have basically realized market-oriented transactions. After the notice was issued, some provinces and cities issued 2022 power market trading policies, which stipulated the trading scale, participation and trading mode, trading price and green power trading in the power market, and effectively promoted the implementation of policies and measures for power market reform.
Industry trends: the national energy administration and the national development and Reform Commission released the list of the first batch of large-scale wind and Everbright base projects, involving 19 provinces, with a total scale of 97.05gw. With the promotion of the construction of the scenery base project, the installed capacity of scenery operators is expected to continue to grow, which is good for scenery operators. The first successful grid connection of reactor 1 of Huaneng Shidaowan high temperature gas cooled reactor nuclear power plant demonstration project marks the world’s first spherical bed modular high temperature gas cooled reactor with the characteristics of the fourth generation advanced nuclear power system, realizing the leap from “laboratory” to “engineering application”, which is conducive to promoting the development of China National Nuclear Power Co.Ltd(601985) .
Investment suggestion: the “14th five year plan” period is the key time window for reaching the peak of carbon, the intensity of carbon control and emission policy is expected to exceed expectations, and the environmental protection public utility industry will usher in development opportunities. The promotion of carbon neutralization policy has opened up new growth space and brought incremental income sources for the development of environmental protection industry, and grasped the four investment directions of low-carbon development on the supply side, electrification on the consumer side, infrastructure of carbon trading, and incremental income of CCER caused by carbon trading. It is recommended to pay attention to Pony Testing International Group Co.Ltd(300887) , China Building Material Test & Certification Group Co.Ltd(603060) , Centre Testing International Group Co.Ltd(300012) , Grandblue Environment Co.Ltd(600323) , Chongqing Sanfeng Environment Group Corp.Ltd(601827) , Shanghai Environment Group Co.Ltd(601200) , Shandong Intco Recycling Resources Co.Ltd(688087) . The implementation of the sixth national plan brings opportunities for post-processing industrial chain. It is suggested to pay attention to Wuxi Longsheng Technology Co.Ltd(300680) , Jiangsu Lopal Tech.Co.Ltd(603906) . Low carbon transformation of energy structure is a key measure to achieve carbon neutrality. Fengguang new energy operation welcomes development opportunities. It is suggested to pay attention to Huaneng Power International Inc(600011) , Huadian Power International Corporation Limited(600027) , China Resources Power, and new energy power generation. It is suggested to pay attention to Fujian Funeng Co.Ltd(600483) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Longyuan power, Cecep Wind-Power Corporation(601016) , Jilin Electric Power Co.Ltd(000875) , Zhejiang Sunoren Solar Technology Co.Ltd(603105) . Meanwhile, the installed capacity of gas and electricity is expected to continue to increase in the future, and the demand for natural gas market will continue to improve. It is suggested to pay attention to Enn Natural Gas Co.Ltd(600803) with outstanding advantages in the integrated layout of the industrial chain and Top Resource Conservation & Environment Corp(300332) with the continuous growth of natural gas business brought about by the transformation and development of Shenan line. The operation of Shenan power line brings Top Resource Conservation & Environment Corp(300332) for the continuous growth of natural gas business. The Hangzhou Shenhao Technology Co.Ltd(300853) , Zhiyang Innovation Technology Co.Ltd(688191) , Suwen Electric Energy Technology Co.Ltd(300982) of intelligent operation inspection standards in the power industry. Industrial temperature control expert, promising target of energy storage and heat management Guangdong Shenling Environmental Systems Co.Ltd(301018) . The power shortage and the continuous widening of peak valley price difference promote the demand for enterprise energy consumption control. It is suggested to pay attention to the enterprise microgrid integrated energy management solution supplier Acrel Co.Ltd(300286) .
Risk warning: the project progress is not as expected; Intensified market competition; The public data used in the research report may have the risk of information lag or untimely update.
