Core view
The two sessions were opened and the government work report was released. On March 5, the fifth session of the 13th National People’s Congress opened at the Great Hall of the people in Beijing. Premier Li Keqiang delivered a government work report (hereinafter referred to as the “report”). The report summarizes last year’s work and puts forward the economic development goals and main tone for the new year.
The word “stability” is the general tone, and it is once again emphasized that the new year’s work should adhere to the principle of stability and seek progress while maintaining stability. The 20th National Congress of the Communist Party of China will be held this year, which is a very important year in the development of the cause of the party and the state. The report emphasizes that we should adhere to the general tone of seeking progress while maintaining stability, fully, accurately and comprehensively implement the new development concept, strive to stabilize the macro-economic market, keep the economic operation within a reasonable range, maintain the overall social stability, and welcome the victory of the 20th CPC National Congress.
In the context of “stability”, the security of energy, electricity and other supply has become the focus. The report emphasizes that efforts should be made to stabilize the macro-economic market, ensure food and energy security, ensure people’s livelihood and the normal production and operation of enterprises, enhance China’s ability to guarantee resource production, improve the national strategic material reserve system and ensure the supply of primary products. The safe supply of energy and electricity will become the focus of the new year. At the same time, in terms of development objectives, the report retains flexibility in the assessment of energy consumption, pointing out that “the objective of energy consumption intensity will be comprehensively assessed within the 14th Five Year Plan period, with appropriate flexibility, and the new renewable energy and raw material energy will not be included in the total energy consumption control”.
“Green economy” will constitute an important direction of steady growth. Facing the new downward pressure, the report pointed out that we should put steady growth in a more prominent position. Specifically, this year, the state will firmly implement the strategy of expanding domestic demand, actively expand effective investment and “moderately advance infrastructure investment”. In terms of investment direction, in addition to key water conservancy projects, comprehensive three-dimensional transportation network and other key directions, the construction of important energy bases and facilities, as well as investment in “green economy” fields such as environmental governance and renewable energy will also become an important direction of steady growth.
It emphasizes the continuous promotion of green and low-carbon development. The report points out that this year will continue to improve the ecological environment and promote green and low-carbon development. In the field of carbon peaking, the goal of double carbon has not changed, but “we should orderly promote the carbon neutralization of carbon peaking and implement the action plan of carbon peaking”, that is, we should follow the principle of “establishing first and then breaking”. Specifically, it includes strengthening the clean and efficient utilization of coal; Promote the planning and construction of large-scale wind and solar power bases and their supporting regulatory power sources, and improve the consumption capacity of the power grid for renewable energy power generation; We will resolutely curb the blind development of high energy consumption, high emissions and low-level projects.
In the context of steady growth, the stable supply of coal, electricity and other energy will be the basis for ensuring security; Investment in “green economy” fields such as environmental governance and renewable energy will be the key direction. At the same time, the long-term goal of carbon peak and carbon neutralization has not changed. The transformation of clean energy will be the only way to achieve the goal of “double carbon”. The construction and consumption of clean energy will be the focus of long-term development in the future. We maintain the investment rating of “optimistic” in the industry, continue to be optimistic about the three main investment lines of large hydropower, scenery operators and clean energy transformation, and suggest paying attention to power operators with good cash flow. Recommend Huaneng Lancang River Hydropower Inc(600025) , Sichuan Chuantou Energy Co.Ltd(600674) , China Yangtze Power Co.Ltd(600900) , Huaneng Power International Inc(600011) electric power, Datang new energy and other companies.
Risk tip: the implementation of carbon neutralization policy is not as expected; The steady growth policy is less than expected; The reform of electricity marketization is less than expected; The consumption of new energy is less than expected;
