Index
On Monday, March 14, 2022, as of the closing, the three major indexes fell across the board. The Shanghai Composite Index fell 2.61% to 322353 points, the Shenzhen Component Index fell 3.08%, the gem index fell 3.56%, and the turnover of the two markets reached 969.9 billion.
Comments
Due to the repeated outbreaks and the complex situation outside China, it is difficult to predict China’s consumption and exports this year. Macroeconomic growth depends more on infrastructure investment. At present, from the perspective of the national macro policy orientation, fiscal expenditure, project implementation and the published performance of listed companies, the new and old infrastructure related industries have begun to show certainty in the first quarter, but the company’s share price has fallen one after another. We believe that this is caused by excessive market pessimism. In the short term, this sentiment may not be repaired immediately, and the market will still be affected by it. However, we are confident and patient in keeping the macro-economy running within a reasonable range, and are optimistic about the long-term opportunities of the infrastructure sector.
Industry dynamics
1. On March 14, the Ministry of Finance issued a report on the implementation of the central and local budgets in 2021 and the draft central and local budgets in 2022. The report pointed out in the work on continuously improving the ecological environment and promoting green and low-carbon development: steadily and orderly promote carbon peak and carbon neutralization. Support the development of green and low-carbon industries and technology research and development, and promote energy conservation and emission reduction in industries such as industry, transportation and steel and building materials. We will improve government green procurement standards and promote the procurement of green and low-carbon products. Study the establishment of a national low-carbon Transformation Fund. Promote the optimization of energy structure, improve clean energy support policies, and vigorously develop renewable energy. Support the exploitation and utilization of unconventional natural gas and encourage enterprises to increase reserves and production. We will promote the settlement of the funding gap for subsidies for renewable energy power generation. (website of the Ministry of Finance)
2. The first batch of centralized wind power projects in Sichuan Province in 2022 have been officially approved, with a total of 14. In addition to the 18 wind power projects approved at the end of the year, 32 wind power projects have been approved in Sichuan Province during the 14th Five Year Plan period, with a total installed capacity of more than 3.21 million KW and a total investment of more than 22.4 billion yuan. (CNR network)
Company dynamics
Zhongmin Energy Co.Ltd(600163) ( Zhongmin Energy Co.Ltd(600163) ): in 2021, the company achieved an operating revenue of 1.561 billion yuan, a year-on-year increase of 24.67%; The total profit was 780 million yuan, a year-on-year increase of 28.76%; The net profit attributable to the shareholders of the listed company was 677 million yuan, a year-on-year increase of 39.31%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 675 million yuan, a year-on-year increase of 44.69%; The basic earnings per share was 0.3860 yuan, a year-on-year increase of 34.21%. （iFinD）
Risk warning: the macro policy is not as expected; Raw material prices rose more than expected.
