According to the Ministry of water resources, recently, the Ministry of water resources issued the guiding opinions on vigorously promoting smart water conservancy construction (hereinafter referred to as the Guiding Opinions) and the implementation plan for promoting smart water conservancy construction during the 14th Five Year Plan period (hereinafter referred to as the implementation plan), The top-level design of smart water conservancy construction (hereinafter referred to as the top-level design) and the smart water conservancy construction plan during the 14th five year plan (hereinafter referred to as the construction plan) were also issued simultaneously. A series of documents defined the timetable, road map, assignment and responsibility list for promoting smart water conservancy construction.
According to the guidance, by 2025, by building digital twin basins, “2 + n” water conservancy intelligent business application system, water conservancy network security system and intelligent water conservancy guarantee system, promote the intelligent transformation of water conservancy projects, build seven major river digital twin basins, and realize the “four forecasts” (i.e. forecast, early warning, rehearsal and plan) in key flood control areas, In major inter basin water diversion and transfer projects and key inter provincial rivers and lakes, the “four forecasts” of water resources management and allocation have been basically realized, the application level of N businesses has been significantly improved, and the intelligent water conservancy system version 1.0 has been built.
Stimulated by the news, water conservancy construction and underground pipe network rose sharply, with the water conservancy construction index rising by 4.27% ranking first. Beijing Hanjian Heshan Pipeline Co.Ltd(603616) , Shandong Longquan Pipeline Engineering Co.Ltd(002671) , Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) limit, others such as China Communications Construction Company Limited(601800) , Zhejiang Kingland Pipeline And Technologies Co.Ltd(002443) , Ningxia Qinglong Pipes Industry Group Co.Ltd(002457) , Xinxing Ductile Iron Pipes Co.Ltd(000778) , Fujian Superpipe Co.Ltd(300198) all rose by more than 6%. In terms of capital, the net inflow of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , Xinxing Ductile Iron Pipes Co.Ltd(000778) , China Communications Construction Company Limited(601800) main funds exceeded 100 million yuan.
water conservancy investment welcomes development dividend
the current progress has a large growth space from the target
In 2021, the national investment in water conservancy construction will be 757.6 billion yuan. 67 of 150 major water conservancy projects have been approved and 62 have been started in total. 146 design units have been completed and accepted in the first phase of the East and middle route of the South-to-North Water Transfer Project, accounting for 94.2% of all design units.
For the key work of water conservancy in 2022, Minister of water resources Li Guoying said that one of the key work of water conservancy in 2022 is to implement major projects of national water network and improve the ability of optimal allocation of water resources. Accelerate the construction of national water network, promote the construction of provincial water network, and open the “last kilometer” of national water network.
Anxin Securities pointed out that the rapid growth of China’s investment in water conservancy construction has a very obvious pulling effect on relevant industries. Water conservancy investment plays a great role in stabilizing growth, expanding domestic demand and stabilizing employment. In the 2020 government report, it is proposed to focus on supporting the “two new and one heavy” construction, including strengthening the construction of major projects such as transportation and water conservancy. The central economic work conference in December 2021 still emphasizes the “two new and one heavy” construction, and the water conservancy investment welcomes the development dividend again. The scale of water conservancy investment in the future can be seen.
According to the data of the Ministry of water resources, in 2011, the investment scale of China’s water conservancy construction projects under construction exceeded trillion for the first time, and then maintained a continuous growth state. By 2019, the investment of projects under construction will exceed 2.8 trillion. In 2020, the central water conservancy construction investment plan is 270.2 billion yuan, a new high in recent ten years.
Guosheng Securities believes that there is more room for water conservancy construction in 2022. According to the plan of the Ministry of water resources, 150 major water conservancy projects will be promoted from 2020 to 2022, with a total investment of 1.29 trillion yuan. At present, there is a large growth space between the progress and the target.
5 Smart Water Conservancy concept stocks received institutional attention
According to the statistics of the securities times · databao, as of January 6, there were 20 companies related to smart water conservancy, with a total market value of 420 billion yuan. The market value of Iflytek Co.Ltd(002230) and China Railway Group Limited(601390) exceeds 100 billion. Iflytek Co.Ltd(002230) said on the interactive platform on June 26 last year that the intelligent water conservancy system built by the company based on artificial intelligence technology has been applied in many places.
China Railway Group Limited(601390) it was revealed on the interactive platform on October 22 last year that China Railway Water Resources and hydropower planning and design group, which belongs to the company, is a class a survey and design company specializing in water conservancy, covering four business segments: Water Conservancy and hydropower, ecological environment, intelligent water conservancy and EPC. The projects cover more than 10 provinces and cities in China and more than 20 countries in Southeast Asia and Africa.
From the performance of the secondary market, as of January 6 and from December 2021 to now, smart water conservancy concept stocks rose and fell by half as a whole. Newcapec Electronics Co.Ltd(300248) , Shenzhen Neoway Technology Co.Ltd(688159) , Xinxing Ductile Iron Pipes Co.Ltd(000778) increased by more than 30%. Newcapec Electronics Co.Ltd(300248) ranked first with an increase of 56.23%. The company said on the interactive platform on December 2 last year that the smart water conservancy related business is an industry information extension based on the company’s core technology, smart products, industry expansion and other capabilities accumulated over the years, and is a growth business of the company.
From the perspective of institutional attention, 70% of concept stocks were rated as positive by brokerage institutions. Iflytek Co.Ltd(002230) , China Railway Group Limited(601390) , Beijing Supermap Software Co.Ltd(300036) , Hengtong Optic-Electric Co.Ltd(600487) , Taiji Computer Corporation Limited(002368) received more than 5 ratings. The five listed companies predict that the net profit growth in 2021 will be more than 10%.
(data treasure)
