According to Xinhua news agency, China’s resource endowment dominated by coal determines that coal power will still play an important role in ensuring China’s energy and power security for a long time. This is what Yu Bing, deputy director of the national energy administration, said at the national coal and electricity “three reform linkage” typical case and Technology Promotion Conference on the 24th. In 2021, China’s coal power consumption is about 305g. Although it is better than the United States and Germany, second only to Japan, and the proportion of supercritical and ultra supercritical units has exceeded 50%, there are nearly 400 million kw of Subcritical Units. The coal consumption of these units is obviously high, so the transformation of energy conservation and carbon reduction needs to be implemented as soon as possible.
In terms of A-share investment, Kaiyuan Securities believes that the performance of many coal enterprises in the first quarter exceeded expectations recently, and the annualized valuation level of most enterprises is only 4 or 5 times, with a high safety margin; In addition, affected by the epidemic situation, the current demand is very poor, and the epidemic situation will eventually be controlled. The government is expected to continue to introduce corresponding policies for steady growth, and the demand is expected to remain good; At present, it will be the best stage to buy expected and allocate coal stocks.
Cinda Securities pointed out that at present, it is in the early stage of a new round of upward cycle of coal economy, and the fundamentals, policies and companies resonate. At this stage, the allocation of coal sector is at the right time. Continue to look at the coal sector in an all-round way, and continue to suggest paying attention to the historic allocation opportunities of coal. It is suggested to pay attention to three main investment lines: first, Yankuang energy, the leader of low value and high dividend power coal, Shaanxi Coal Industry Company Limited(601225) , China Shenhua Energy Company Limited(601088) ; Second, Pingdingshan Tianan Coal Mining Co.Ltd(601666) , Guizhou Panjiang Refined Coal Co.Ltd(600395) , which are both resource scarcity and significant growth; Third, Shanxi Coking Coal Energy Group Co.Ltd(000983) and Jinneng Holding Shanxi Coal Industry Co.Ltd(601001) , which have great potential for extensive expansion brought by the increase of asset securitization rate of state-owned coal group.
