[market performance] last Friday, the CSI 300 index closed at 4940.4 points, up 0.4% in one week and down 5.2% year to date; The Shanghai Composite Index closed at 3639.8, up 0.6% in one week and 4.8% year to date. Among CITIC’s 30 first-class industries, national defense and military industry, light industry manufacturing, basic chemical industry and other sectors performed better last week, with the weekly increase of 2.5% in the machinery industry, ranking 10th. Year to date, the machinery industry has increased by 15.2%, ranking 10th. In terms of molecular industries, the top five performing industries in the machinery industry last week were transportation equipment (+ 6.2%), instruments (+ 5.3%), mining and metallurgical machinery (+ 4.7%), detection (+ 4.2%) and lithium battery equipment (+ 4.2%), with the largest decline being plastic processing equipment (- 4.4%).
[key information] on December 30, 2021, SASAC issued the guidance on promoting the high-quality development of central enterprises and doing a good job in carbon peak and carbon neutralization. The notice proposed that by 2025, the comprehensive energy consumption of 10000 yuan output value of central enterprises will be 15% lower than that in 2020, the carbon dioxide emission of 10000 yuan output value will be 18% lower than that in 2020, and the power generation capacity of renewable energy will reach more than 50%, The revenue proportion of war Road emerging industries shall not be less than 30%, laying a solid foundation for achieving carbon peak (CPIA).
[Key announcement] 1) Pnc Process Systems Co.Ltd(603690) : it is proposed to invest 150 million yuan in Tianjin Haihe Zhihui. The total subscribed capital contribution of Haihe Zhihui is 380 million yuan, which can be increased to no more than 1.2 billion yuan during the duration, mainly in optoelectronics and pan semiconductor related fields. 2) Naipu Mining Machinery Co.Ltd(300818) : the performance forecast for 2021 was released. The net profit attributable to the shareholders of the listed company in this report was 170 ~ 200 million yuan, an increase of 306.2% ~ 380.0% over the same period last year. The significant increase was mainly due to the increase in the income of erdente project.
[view this week] domestic photovoltaic equipment plants have great development potential in overseas markets. More than 100 countries around the world have pledged to achieve “carbon neutrality” by 2060. The United States promises to reduce carbon emissions by 26% ~ 28% in 2025 compared with 2005; The EU plans to reduce carbon emissions by at least 40% in 2030 compared with 1990. Cost reduction and efficiency increase is the core of the development of photovoltaic industry. With the development of technology and the expansion of production scale, the kWh cost is close to that of traditional fossil fuels. According to irnea data, the global PV kwh cost decreased by about 84.2% on average from 2010 to 2020. Photovoltaic will play an important role in energy low-carbon transformation under the driving factors such as cost reduction and policy support. According to CPIA prediction, the newly added PV installed capacity in the world will continue to grow, reaching 270 ~ 330gw in 2025, and the CAGR from 2020 to 2025 will be in the range of 15.7% ~ 20.5%. Although China’s photovoltaic industry started late, it has developed rapidly. By 2020, China’s new PV installed capacity and cumulative installed capacity have ranked first in the world for 8 and 6 consecutive years respectively; In addition, China’s output of photovoltaic silicon wafers, photovoltaic cells and photovoltaic modules has increased rapidly. In addition to meeting the needs of the Chinese market, it is also exported to overseas markets. China’s photovoltaic industry ranks first in the world in terms of volume, makes continuous breakthroughs in technical level, and has completed domestic substitution of raw materials and equipment. Leading manufacturers of photovoltaic equipment in China have close cooperation with leading manufacturers of downstream silicon wafers, cells and modules, have leading advantages in capital and scale, strong R & D strength and the ability to update and iterate in time.
Investment advice
Under the background of steady increase in overseas market demand, domestic equipment manufacturers with international competitiveness are expected to win development opportunities in the vast overseas market. It is suggested to pay attention to the leading enterprises of domestic photovoltaic equipment: Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) , Shenzhen S.C New Energy Technology Corporation(300724) , Suzhou Maxwell Technologies Co.Ltd(300751) .
Risk statement
The installed capacity of overseas PV is less than expected, trade friction and repeated global epidemic.
