Index
On Thursday, March 17, 2022, as of the closing, the Shanghai Composite Index rose 1.40% to 321504 points, the Shenzhen Component Index rose 2.41%, and the gem index rose 2.87%. The turnover of the two markets reached 1275.4 billion, which was moderate and large compared with yesterday. Northbound funds bought a net 5.365 billion yuan today, ending the net selling state for eight consecutive trading days.
Comments
In the first half of the year, the growth rate of infrastructure construction is expected to remain at a high level, providing effective support for stable macroeconomic growth. According to the latest data released by the National Bureau of statistics, from January to February, infrastructure investment increased by 8.1% year-on-year, 7.7 percentage points faster than the whole year of 2021, the number of new projects invested increased by 1.1 times year-on-year, the total planned investment of new projects increased by 62.8%, the national budget funds increased by 33.9%, self raised funds increased by 13.2%, and the growth rate of infrastructure investment accelerated to achieve a good start. Specifically, the investment in water conservancy management industry increased by 22.5%, the investment in road transportation industry increased by 8.2%, and the investment in railway transportation industry decreased by 8.0%. The investment direction can be focused. In terms of traditional infrastructure, it is suggested to pay attention to the engineering construction sector of water conservancy Road and bridge project, as well as the building materials and engineering survey and design sector of relevant industrial chain.
Industry dynamics
Guangxi development and Reform Commission has issued the plan of Guangxi Zhuang Autonomous Region for accelerating the construction of existing onshore wind power and photovoltaic power generation projects and supporting facilities. The plan clearly stipulates that all projects that obtain construction indicators by 2020 and before will be completed and put into operation by the end of 2023, all projects included in the 2021 construction plan will be completed and put into operation by 2023, and all projects will be completed and put into operation during the 14th Five Year Plan period. We should comprehensively accelerate the construction progress of projects with construction indicators in 2020 and previous years. For wind power projects approved before the end of 2018 and photovoltaic projects that have obtained construction indicators in 2019 and before, if they have not been connected to the grid by the end of June 2022, the project construction indicators will be invalid. If they have been partially connected to the grid, the remaining capacity indicators that have not been connected to the grid will be invalid. If the wind power projects approved in 2020 are not connected to the grid at full capacity by the end of 2023, and the photovoltaic projects that have obtained the construction index in 2020 are not connected to the grid at full capacity by the end of 2022, they will not be included in the scope of guaranteed grid connection projects, and they will not be connected to the grid until they meet the market-oriented grid connection conditions. (website of Guangxi development and Reform Commission)
Company dynamics
Guangdong No.2 Hydropower Engineering Company Ltd(002060) ( Guangdong No.2 Hydropower Engineering Company Ltd(002060) ): Recently, Xinjiang Guangdong No.2 Hydropower Engineering Company Ltd(002060) Energy Co., Ltd., a wholly-owned subsidiary of the company, and the people’s Government of Weining Yi, Hui and Miao Autonomous County, Bijie City, Guizhou Province signed the framework agreement for the development of Weining County new energy power generation project. The people’s Government of Weining County agrees that Xinjiang Guangdong No.2 Hydropower Engineering Company Ltd(002060) will invest in the construction of a new energy power generation project with a total installed capacity of 1.05 million kW in Weining County, with a total investment of about 6.3 billion yuan. Among them, the proposed construction scale of distributed photovoltaic project is about 50000 kW, with a total investment of about 300 million yuan; The centralized photovoltaic power generation project is 800000 kW and the wind power generation project is 200000 kW, with a total investment of about 6 billion yuan. Xinjiang Guangdong No.2 Hydropower Engineering Company Ltd(002060) will invest with its own funds and loans from financial institutions. （iFinD）
Risk warning: the macro policy is not as expected; The price rise of raw materials exceeded expectations; The epidemic situation is repeated or lasts longer than expected.
