Market review: this week, the public utility industry index fell 0.48%, outperforming the Shanghai and Shenzhen 300 index by 3.71%, and the market performance was stronger than the market. Among the sub sectors of environmental protection industry, monitoring & detection, energy conservation and clean energy utilization decreased slightly, while among the sub sectors of public industry, hydropower and thermal power increased significantly.
Special research: the companies of thermal power transformation and scenery new energy development have fallen sharply since the beginning of 2022. At the current time point, we believe that the target of thermal power transformation and scenery new energy may begin to be optimistic. We are optimistic about the market performance of the target of thermal power transformation in the second quarter, mainly for the following five reasons: first, after the early decline, the sector has a certain margin of safety; Second, the market-oriented transaction price of coal and electricity rises, which helps to hedge the cost side pressure brought by the rise of coal price on thermal power enterprises; Third, coal price regulation and coal supply guarantee policies are promoted, and coal prices may decline in the off-season; Fourth, the epidemic situation in China is spreading at many points, the demand for electricity is weak, and the output of thermal power is reduced, helping to reduce the loss of thermal power; Fifth, the transformation of new energy has been promoted, and the certainty of medium – and long-term scenery new energy installed capacity growth is high.
Industry dynamics: the national development and Reform Commission pointed out that the price of wind and solar power will continue to be parity in 2022. In order to promote the sustained and healthy development of wind power and photovoltaic power generation industry, in 2022, the parity on grid policy will be continued for newly approved onshore wind power projects, newly filed centralized photovoltaic power plants and industrial and commercial distributed photovoltaic projects, and the on grid price will be implemented according to the local benchmark price of coal-fired power generation. New projects can voluntarily participate in market-oriented transactions to form on grid electricity price, so as to fully reflect the green power value of new energy. All localities are encouraged to introduce targeted support policies to support the high-quality development of wind power and photovoltaic power generation industry. The new Fengguang new energy project continues the parity Internet access policy, which helps to ensure the profitability of Fengguang new energy power generation projects.
Investment suggestion: the low-carbon transformation of energy structure continues to advance, and the installed scale of green power is high during the 14th Five Year Plan period, with high certainty of growth. In addition, the green power pilot transaction was launched, which brought marginal benefits to green power enterprises from the price side, and carbon emission quota transaction and CCER transaction brought incremental performance sources to green power enterprises. The green power sector is expected to maintain a high outlook during the 14th Five Year Plan period. It is suggested to actively grasp the investment opportunities of the green power sector. It is suggested to pay attention to: 1) China Three Gorges Renewables (Group) Co.Ltd(600905) , Jiangsu New Energy Development Co.Ltd(603693) , Zhongmin Energy Co.Ltd(600163) , Cecep Wind-Power Corporation(601016) , Cecep Solar Energy Co.Ltd(000591) , Jinko Power Technology Co.Ltd(601778) , Zhejiang Sunoren Solar Technology Co.Ltd(603105) ; 2) China Resources Power, Huaneng Power International Inc(600011) , Jilin Electric Power Co.Ltd(000875) , Shanghai Electric Power Co.Ltd(600021) , Fujian Funeng Co.Ltd(600483) , which actively transformed the development of new energy. 3) Nuclear power is expected to rise both in volume and price, and actively transform the development of scenery new energy China National Nuclear Power Co.Ltd(601985) . Environmental protection enterprises actively expand new increment and open the second growth curve. It is suggested to pay attention to Shengyuan Environmental Protection Co.Ltd(300867) , Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) , Wangneng Environment Co.Ltd(002034) . Waste recycling brings new market opportunities. It is suggested to pay attention to the rapid and large-scale recycling of organic residue Road Environment Technology Co.Ltd(688156) . During the 14th Five Year Plan period, the investment in power grid increases, and the distribution network and intellectualization are the main directions. It is suggested to pay attention to Hangzhou Shenhao Technology Co.Ltd(300853) of the intelligent operation and inspection standard of the power industry and Suwen Electric Energy Technology Co.Ltd(300982) . Industrial temperature control expert, promising subject of energy storage and heat management Guangdong Shenling Environmental Systems Co.Ltd(301018) . The power shortage and the continuous widening of the price difference between peak and valley have promoted the demand for enterprise energy consumption control. It is suggested to pay attention to the enterprise microgrid integrated energy management solution supplier Acrel Co.Ltd(300286) .
Risk warning: the project progress is not as expected; The implementation of the policy is not as expected; Intensified market competition; The public materials used in the research report may have the risk of information lag or untimely update.
