This week's view
The power equipment and new energy index fell 6.56% this week, and all segments fell. Among them, the photovoltaic sector fell 7.77% due to the lower than expected Sungrow Power Supply Co.Ltd(300274) performance. At present, the valuation of medium and large cap stocks in the sector has fallen below the center, and the overall valuation has fallen to a low level. We believe that there is no need to worry too much in this position. After the uncertain factors are gradually implemented, the focus of the market will return to the growth of the industry.
The market continued to fall under a variety of sudden negative factors, and some stocks whose performance exceeded the expected growth fell, which is the centralized feedback of the market on the impact of high raw material prices and epidemic shutdown. The management has released positive feedback for many times, but the market feedback is general, and the overall valuation of the sector has fallen to the low level since April 2020. According to Wande statistics, since April 2020, the median PE of Dianxin index is 53 times, and the current PE of the sector is 38 times, which is already at the low level of the range and 39 times lower than the low point from April to May of 21 years.
On the whole, the new energy industry will still be one of the industries with rapid growth in emerging industries in the next few years. With the continuous landing of negative factors, the market may continue to focus on the growth of the new energy sector. Miskilled enterprises with high growth rate and obvious anti risk ability will take the initiative in the subsequent recovery. In the absence of significant changes in policy and fundamentals, the valuation fell sharply or an important opportunity to layout the next market, focusing on the higher than expected stocks with high growth rate in the first quarter.
Some company dynamics
Sungrow Power Supply Co.Ltd(300274) ( Sungrow Power Supply Co.Ltd(300274) . SZ) released its annual performance report on the evening of April 19, saying that the operating revenue in 2021 was about 24.137 billion yuan, an increase of 25.15% year-on-year; The net profit attributable to shareholders of listed companies was about 1.583 billion yuan, a year-on-year decrease of 19.01%; The basic earnings per share was 1.08 yuan, a year-on-year decrease of 19.4%. It is proposed to distribute cash dividend of 1.1 yuan (including tax) for every 10 shares, no bonus shares and no increase. (company announcement)
Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) . SZ) disclosed the annual report of 2021 on the evening of April 21, and the company achieved an operating revenue of 130356 billion yuan, a year-on-year increase of 159.06%; The net profit was 15.931 billion yuan, a year-on-year increase of 185.34%. The company plans not to distribute cash dividends, bonus shares or increase share capital with provident fund. The company announced on the same day that it plans to invest in the construction of Xiamen times new energy battery industry base project in Xiamen, Fujian Province, with a total investment of no more than 13 billion yuan. The construction content is the production line of power battery system and energy storage system. (company announcement)
Risk tips
The risk of intensified market competition, repeated epidemic and subsidy policy.
