Key investment points:
Market review: as of April 22, 2022, Shenwan power equipment industry fell 6.90% in that week, 2.71 percentage points lower than Shanghai and Shenzhen 300 index, ranking 26th among Shenwan 31 industries; Shenwan power equipment sector has fallen 17.49% so far this month, 12.53 percentage points lower than the CSI 300 index, ranking 31st among Shenwan 31 industries; Shenwan power equipment sector has fallen 32.16% year to date, 13.40 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries.
As of April 22, 2022, the six sub sectors of Shenwan power equipment industry fell in that week, with the largest decline of 8.03% in the battery sector. The performance of other sectors is as follows: the motor II sector fell 6.49%, the photovoltaic equipment sector fell 7.33%, the other power supply equipment II sector fell 3.39%, the power grid equipment sector fell 4.57%, and the wind power equipment sector fell 4.71%.
Among the top ten stocks that rose in the week, Harbin Air Conditioning Co.Ltd(600202) , Cybrid Technologies Inc(603212) and Suzhou Maxwell Technologies Co.Ltd(300751) ranked among the top three in Shenwan power equipment sector, up 22.20%, 20.94% and 12.54% respectively. Among the top ten stocks that fell in the week, Sungrow Power Supply Co.Ltd(300274) , Flat Glass Group Co.Ltd(601865) and Wuxi Shangji Automation Co.Ltd(603185) performed weakly, with declines of 22.93%, 17.49% and 17.27% respectively.
In terms of Valuation: as of April 22, 2022, the PE (TTM) of power equipment sector was 34.57 times; In terms of sub sectors, PE (TTM) of motor II sector is 33.66 times, PE (TTM) of other power supply equipment II sector is 22.80 times, PE (TTM) of photovoltaic equipment sector is 39.46 times, PE (TTM) of wind power equipment sector is 18.28 times, PE (TTM) of battery sector is 43.47 times, and PE (TTM) of power grid equipment sector is 20.02 times.
Zhou's view of the power equipment industry: Recently, due to the maintenance of two silicon material manufacturers in China, the demand for crystal drawing materials remained high, resulting in the silicon material still in short supply in April. The epidemic situation in China and the obstruction of logistics transportation still have a certain impact on the production and delivery of silicon material enterprises. The operating rate of existing and new silicon wafer production capacity has remained relatively high. Since April, the prices of silicon wafer leaders and battery chip leaders have increased one after another, driving the price of polycrystalline silicon in China to continue to rise slightly in the past week. At present, there is a strong demand for auxiliary materials such as photovoltaic module adhesive film, and the price of auxiliary materials is expected to rise in the near future. In terms of export, according to gaixi consulting, in the first quarter of 2022, the cumulative export of modules was about 41.3gw, with a year-on-year increase of about 108.5%. Among them, the export of modules in March was about 14.5gw, with a year-on-year increase of about 85%. Under the background of maintaining the rising price trend of the photovoltaic industry chain, the overseas demand for modules remained booming and the acceptance of high-priced modules was high, especially China's exports to the top ten European countries, Brazil and India were the most significant, The export of 2022q1 components increased by about 137.1%, 99.6% and 373.3% respectively year-on-year. In the context of rising prices in the industrial chain and strong overseas demand, it is suggested to pay attention to enterprises whose performance is expected to exceed expectations: Tongwei Co.Ltd(600438) ( Tongwei Co.Ltd(600438) ) and Tbea Co.Ltd(600089) ( Tbea Co.Ltd(600089) ) benefiting from the high silicon price; The demand for components outside China remains strong, benefiting from the leading adhesive film leader Hangzhou First Applied Material Co.Ltd(603806) ( Hangzhou First Applied Material Co.Ltd(603806) ) with both the volume and price of adhesive film.
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 component export demand leads to the risk that the demand for auxiliary materials is lower than expected.
