Market review: this week, the public utility industry index rose 1.57%, underperforming the Shanghai and Shenzhen 300 index by 0.66%, and the market performance was weaker than the market. Among the fine-grained industries in the environmental protection industry, gardens and atmospheric governance sectors led the increase. Among the sub sectors of the public sector, clean energy and local power grids increased significantly.
Special research: the whole Shanxi Guoxin Energy Corporation Limited(600617) consumption monitoring and Early Warning Center released the evaluation and analysis of new energy power consumption in the first quarter of 2022. In the first quarter, the national abandoned wind power was 6 billion kwh, and the utilization rate of wind power was 96.8%, an increase of 0.8 percentage points year-on-year. The national waste of photovoltaic power was 2.4 billion kwh, and the utilization rate of photovoltaic power generation was 97.2%, a year-on-year decrease of 0.3 percentage points. The utilization rate of photovoltaic power generation continued to decline from 2021q3. The installed capacity of distributed PV maintained rapid growth. In the first quarter, the installed capacity of distributed PV increased by 8.87gw, a year-on-year increase of 192%. The newly added distributed PV accounted for 67.1% of the total installed capacity of new PV in China, a year-on-year increase of 12.5 percentage points.
On May 18, Weng Jing, deputy director of the State Council, said that the reform of state-owned enterprises should be the main responsibility of the state-owned enterprises, and the state-owned enterprises should be promoted. On May 18, Weng Jing, deputy director of the State Council, said that he should focus on the reform of state-owned enterprises and strive to be the main responsibility of the industry. We should continue to increase the injection of high-quality assets into listed companies. The group company shall systematically sort out the unlisted and listed resources, and gradually inject the existing unlisted high-quality assets into the listed company in a planned way in combination with the actual situation. If necessary, it can also be listed separately.
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. Suggestions and concerns: 1) for the targets of thermal power transformation Huaneng Power International Inc(600011) , Gd Power Development Co.Ltd(600795) , China electric power, the state has introduced a series of measures such as coal price regulation and coal supply guarantee, with great regulation and control efforts. It is expected that the purchase price of thermal power coal is expected to decline in the future. With the rise of transaction electricity price and the increase of power generation, the thermal power sector turned losses into profits while the revenue increased sharply in the first quarter of 2022. It is expected to continue to usher in profit restoration in the future. At the same time, after the decline in the early stage, the sector has a certain margin of safety; 2) Offshore wind operators China Three Gorges Renewables (Group) Co.Ltd(600905) , Zhongmin Energy Co.Ltd(600163) , Fujian Funeng Co.Ltd(600483) , the cost of offshore wind power has been declining since the end of 2021, and the industry continues to be high; 3) Policies support the safe and orderly development of nuclear power. In the future, the approval of nuclear power projects will be normalized. Nuclear power is expected to increase both volume and price, and actively transform and develop the 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) , which actively promotes photovoltaic and offshore wind power projects, Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co.Ltd(603165) , which promotes distributed photovoltaic throughout the county, Wangneng Environment Co.Ltd(002034) , which arranges lithium battery recycling, and China Tianying Inc(000035) , which promotes the commercialization demonstration project of gravity energy storage. 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) and plastic recycling Shandong Intco Recycling Resources Co.Ltd(688087) . In the future, the installed capacity of gas and electricity is expected to increase continuously, and the demand for natural gas market continues to improve. It is suggested to pay attention to Enn Natural Gas Co.Ltd(600803) , which has outstanding advantages in the integrated layout of the industrial chain. During the 14th Five Year Plan period, the investment in power grid increased, with distribution network and intelligence as the main direction. The “14th five year plan” of China Southern Power Grid pointed out that the investment scale of distribution network construction of China Southern Power Grid during the 14th Five Year Plan period was 320 billion yuan, accounting for about half of the total investment. At the same time, it is expected that the State Grid will also increase the investment in distribution network construction in the future. It is suggested to pay attention to the Suwen Electric Energy Technology Co.Ltd(300982) . As the installed capacity of energy storage is expected to increase significantly, the market demand for energy storage thermal management will burst. It is suggested to pay attention to industrial temperature control experts and the promising target of energy storage thermal 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; Intensified market competition; The public materials used in the research report may have the risk of information lag or untimely update.
