Key investment points:
Hunan Province issued opinions on the implementation of double carbon work and formulated medium and long-term planning objectives. The Hunan provincial Party committee and the Hunan provincial government issued the implementation opinions on fully, accurately and comprehensively implementing the new development concept and doing a good job in carbon peak and carbon neutralization. Under the framework of the “1 + n” carbon neutralization policy system and in combination with the actual situation of Hunan Province, the opinions made important arrangements for the carbon peaking and carbon neutralization work in Hunan Province, and defined the double carbon goals of 2025, 2030 and 2060.
The objective and pragmatic 2025 goal closely follows the 3060 goal of top-level design. The opinions gives three quantitative targets for 2025, and fully considers the energy supply demand with an average annual economic growth rate of more than 6% during the 14th Five Year Plan period in combination with the objective conditions of Hunan’s local resource endowment and energy demand. The opinions gives four 3060 quantitative targets, and the increase of some key target values is higher than the national level, which continues the positive response of Hunan Province to the national top-level policy.
Focus on the development of clean, low-carbon, safe and efficient energy system in Hunan Province. The energy system construction of Hunan Province under the dual carbon goal will focus on four measures: 1. Strictly control the total coal consumption, develop clean coal power, give play to the role of coal power basic supply and emergency peak shaving, strictly restrict energy consumption, and promote high emission enterprises in key areas to reduce coal and carbon; 2. Reasonably regulate oil and gas consumption and accelerate the construction of gas source, pipe network and gas storage and peak shaving facilities; 3. Increase the scale of renewable energy utilization, explore the potential of renewable energy in the province, layout new energy storage and pumped storage power stations, actively strive for green power from outside the province to Hunan, promote power grid construction and build a new power system; 4. Deepen the reform of energy system and mechanism, accelerate the cultivation of power auxiliary service market, and implement the policy mechanism of peak valley time of use price and demand response.
Investment advice. It is expected that during the 14th Five Year Plan period, Hunan Province will increase investment in clean coal-fired power units, peak shaving pumping and storage power stations, new energy storage power stations, UHV AC and DC transmission projects, as well as the transformation of the main grid and distribution network in the province. It is estimated that the above construction will stimulate the demand of tens of billions of yuan in relevant industries, including power cables, cable accessories, high and low voltage power equipment, energy storage power stations, etc. it is suggested to pay attention to: wire and cable enterprises Gold Cup Electric Apparatus Co.Ltd(002533) ( Gold Cup Electric Apparatus Co.Ltd(002533) . SZ) and Hunan Valin Wire&Cable Co.Ltd(001208) ( Hunan Valin Wire&Cable Co.Ltd(001208) . SZ) with local production capacity and sales network coverage advantages; Cable accessory enterprise Chang Lan Electric Technology Co.Ltd(002879) ( Chang Lan Electric Technology Co.Ltd(002879) . SZ) benefiting from power grid construction and domestic substitution of high-voltage cable parts; Power grid primary equipment enterprise Changgao Electric Group Co.Ltd(002452) ( Changgao Electric Group Co.Ltd(002452) . SZ) with leading market share of high-voltage disconnector; Deep ploughing power automation business extension Hnac Technology Co.Ltd(300490) ( Hnac Technology Co.Ltd(300490) . SZ) of lithium energy storage business.
Risk tip: the policy progress is less than expected, the price of raw materials fluctuates, and the economic growth is less than expected
