Key investment points:
Market review: as of April 15, 2022, Shenwan power equipment industry fell 7.37% in that week, 6.38 percentage points lower than Shanghai and Shenzhen 300 index, ranking 28th among Shenwan 31 industries; Shenwan power equipment sector has fallen 11.38% so far this month, 10.58 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries; Shenwan power equipment sector has fallen 27.14% year to date, 11.92 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 29th among Shenwan 31 industries.
As of April 15, 2022, the six sub sectors of Shenwan power equipment industry fell in that week, with the largest decline of 9.17% in the battery sector. The performance of other sectors is as follows: the motor II sector fell 5.30%, the photovoltaic equipment sector fell 6.11%, the other power supply equipment II sector fell 5.83%, the power grid equipment sector fell 5.07%, and the wind power equipment sector fell 7.91%.
Among the top ten stocks that rose in the week, Yuan Cheng Cable Co.Ltd(002692) , poly new and Hangzhou Weiguang Electronic Co.Ltd(002801) ranked among the top three in the Shenwan power equipment sector, with increases of 12.09%, 5.79% and 2.21% respectively. Among the top ten stocks that fell in the week, Shandong Shida Shenghua Chemical Group Company Limite(603026) , Cngr Advanced Material Co.Ltd(300919) and Sungrow Power Supply Co.Ltd(300274) performed weakly, with declines of 19.55%, 18.83% and 16.73% respectively.
In terms of Valuation: as of April 15, 2022, PE (TTM) of power equipment sector was 36.48 times; In terms of sub sectors, PE (TTM) of motor II sector is 35.19 times, PE (TTM) of other power supply equipment II sector is 23.00 times, PE (TTM) of photovoltaic equipment sector is 41.93 times, PE (TTM) of wind power equipment sector is 19.14 times, PE (TTM) of battery sector is 55.64 times, and PE (TTM) of power grid equipment sector is 21.02 times.
Zhou’s view of the power equipment industry: Recently, due to the lower than expected release of new production capacity of some mainstream silicon enterprises in China, the maintenance of some foreign silicon manufacturers and the transportation of imported silicon materials are blocked, resulting in the lower than expected import volume of silicon materials. Meanwhile, the operating rates of existing and new silicon wafer production capacity have remained relatively high, and since April, the prices of silicon wafer leaders and battery chip leaders have increased one after another, driving the price of polysilicon in China to continue to rise slightly in the past week. With the start of China’s centralized project, it is expected that the demand for battery chips and components will remain strong, the supply of some auxiliary materials such as glass and junction box is tight, the price rises, and the price of adhesive film is also brewing. According to the component procurement bidding recently announced by CGN new energy, the average procurement price came to 2.13 yuan / W. Based on the continuous price rise trend in all links, it is expected that the component price will remain stable or rise slightly in the short term. It is suggested to pay attention to Longi Green Energy Technology Co.Ltd(601012) ( Longi Green Energy Technology Co.Ltd(601012) ) Tongwei Co.Ltd(600438) Tongwei Co.Ltd(600438) ）； Hangzhou First Applied Material Co.Ltd(603806) Hangzhou First Applied Material Co.Ltd(603806) ）； Flat Glass Group Co.Ltd(601865) Flat Glass Group Co.Ltd(601865) ）。
Risk warning: the intensification of the epidemic in China will affect the logistics and transportation; The new supply of silicon material is less than expected, resulting in the risk of price rise; The weakening of bidding demand for photovoltaic projects leads to the risk that the new installed capacity is less than expected.
