Industry review: the investment plan of the two networks in 2022 is significantly higher than that of the 13th five year plan. The investment in 22q1 increased by 15% at the same time, and the prosperity of the sector is high
The State Grid plans to invest 501.2 billion yuan in 2022, an increase of 6% at the same time. The South Grid plans to invest 120 billion yuan in 2022, an increase of 20% at the same time, which is significantly higher than the growth rate of power grid investment during 20162021 (the apparent CAGR is about 1%, and the same caliber is basically the same). The prosperity of power grid sector in 2022 is high.
The investment in power grid in 2022q1 was 31.3 billion yuan, with a year-on-year increase of 15%, an increase of 70% / 24% respectively compared with 2020 / 2019 (apparent growth rate), laying the foundation for the annual investment.
Considering the key role of power grid investment in countercyclical regulation, supporting new energy consumption and the strategic goal of double carbon, there is a possibility that the investment in 2022 and the 14th five year plan will exceed expectations.
2021 operation summary: the revenue performance continues to grow rapidly, and the profitability is significantly improved
In 2021, the growth rates of revenue, net profit attributable to parent company and net profit deducted from non parent company of power grid sector were 18% / 40% / 43% respectively, maintaining a high growth rate since 2020. Excluding Tbea Co.Ltd(600089) (photovoltaic business has a great impact on the profits of the sector), the performance of the sector increased by 23%; The gross profit margin increased by 1.40pct year-on-year and the net profit margin increased by 2.10pct year-on-year
Under the dual carbon environment, the power grid investment will grow steadily in 2021, and the adjustment of energy structure will be accelerated, which will drive the rapid growth of the demand for power equipment represented by new energy power generation facilities. The superposition of cost optimization and cost control will significantly improve the profitability, and the leading enterprises generally achieve rapid performance growth.
2021 business summary: the profitability of primary equipment has improved rapidly and the performance growth rate is high
In 2021, the revenue and performance growth of the primary equipment sector was relatively high, which mainly benefited from the rapid growth of the demand for supporting equipment and the improvement of profitability under the accelerated construction of new energy. In addition, the investment in links represented by distribution transformers and UHV accelerated; The revenue of the secondary equipment sector maintained steady growth, and the performance growth slowed down, mainly due to the large increase in the cost of core components such as chips.
2022q1 operation summary: Q1 has a high investment growth rate, and the sector maintains a high growth rate, and the profitability has been adjusted
In 2022q1, the growth rates of revenue, net profit attributable to parent company and net profit deducted from non parent company of power grid sector were 26% / - 15% / 21% respectively. The gross profit margin decreased by 2.01pct year-on-year and the net profit margin decreased by 3.36pct year-on-year. Q1 power grid investment increased by 15%, the sector maintained rapid growth under the high boom investment, and the profitability decreased under the factors such as the rise in the price of upstream raw materials and the epidemic situation.
2022q1 operation summary: the operation performance of the primary / secondary equipment sector is basically the same, and the profitability is reduced due to the rise in the price of core devices and the impact of the epidemic
In 2022q1, the revenue growth rate of the primary equipment sector is relatively high, the non performance growth rate of the secondary equipment sector is relatively high, and the overall performance is basically the same. The slowdown in revenue growth is mainly due to the impact of the epidemic and other factors on delivery, and the adjustment of profitability is mainly due to the large increase in the cost of chips and other core components, the increase in freight under the epidemic and other factors.
