Market review: Shenwan power equipment industry fell 8.31% last week, losing 5.93 percentage points of Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries. The first three stocks in the power equipment sector were Chongqing Wanli New Energy Co.Ltd(600847) , Sunway Co.Ltd(603333) and Zhejiang Sunflower Great Health Limited Liability Company(300111) respectively, and the three companies increased by 14.70%, 13.70% and 11.11% respectively. In terms of valuation, as of January 7, 2022, the pettm of power equipment sector was 48.60 times and the pbttm of power equipment sector was 6.29 times.
Viewpoint of Power Equipment Industry Week: Recently, relevant national ministries and commissions successively issued the action plan for innovation and development of intelligent photovoltaic industry (2021-2025) and the implementation opinions on accelerating rural energy transformation and development and promoting rural revitalization. The State encourages the application of intelligent photovoltaic in the pilot development of roof distributed photovoltaic in the whole county (city, district), and promotes the organic integration of photovoltaic power generation with other industries. By 2025, a number of green and low-carbon pilot projects for rural energy will be built, the proportion of wind power, Cecep Solar Energy Co.Ltd(000591) , biomass energy and geothermal energy in rural energy will continue to increase, the guarantee capacity of rural power grid will be further enhanced, and distributed renewable energy will grow. The proportion of distributed photovoltaic installed capacity is expected to increase this year. From the perspective of the industry, with the price reduction of upstream raw materials, new projects began bidding. Recently, the bidding and bid evaluation results of PetroChina 4.5gw photovoltaic module framework were released, and 6 enterprises were shortlisted in each bid section. In January, the overall operating rate of the photovoltaic industry has increased month on month, and the downstream demand is expected to gradually pick up. It is recommended to pay attention to Longi Green Energy Technology Co.Ltd(601012) (601012); Tongwei Co.Ltd(600438) （600438）； Sungrow Power Supply Co.Ltd(300274) （300274）； Flat Glass Group Co.Ltd(601865) （601865）； Hangzhou First Applied Material Co.Ltd(603806) （603806）； Cecep Solar Energy Co.Ltd(000591) （000591）。
Risk warning: macroeconomic fluctuations affect downstream demand; The price of the industrial chain has risen sharply; Risks such as intensified industry competition; Electricity demand is lower than expected; The construction of new energy power generation is less than expected.
