From January to April, the power consumption of the whole society increased by 3.4%, and the power consumption of the primary industry increased rapidly. According to the data of China electricity Union, from January to April 2022, the power consumption of China’s whole society was 2680.9 billion kwh, a year-on-year increase of 3.4%. By industry, the electricity consumption of the primary industry was 31.9 billion kwh, a year-on-year increase of 10.8%; The power consumption of the secondary industry was 1770.4 billion kwh, a year-on-year increase of 1.9%; The electricity consumption of the tertiary industry was 453.1 billion kwh, a year-on-year increase of 3.1%.
From January to April, the power generation increased by 1.3%, and the hydropower and wind power generation increased significantly in April. According to the data of China electricity Union, from January to April 2022, China’s power generation was 2602.9 billion kwh, a year-on-year increase of 1.3%. In terms of different power types, the thermal power generation capacity was 1863.5 billion kwh, a year-on-year decrease of 1.8%; Hydropower generation was 313 billion kwh, an increase of 14.3% year-on-year; Nuclear power generation was 131.7 billion kwh, a year-on-year increase of 5.4%; Wind power generation was 257.4 billion kwh, a year-on-year increase of 10.7%. In terms of utilization hours, from January to April, the average utilization hours of hydropower, thermal power, nuclear power, wind power and Cecep Solar Energy Co.Ltd(000591) equipment in China were 904, 1417, 2447, 778 and 432 hours respectively, with changes of + 61, – 51, – 4, – 45 and + 23 hours respectively compared with the same period in 2021. In April, the power generation was 610.7 billion kwh, a year-on-year decrease of 1.9%, mainly due to the impact of the epidemic.
From January to April, the installed capacity of Fengguang increased by 26.46gw, and the proportion of installed capacity of Fengguang continued to increase. According to the data of China electricity Union, from January to April, the newly installed capacity of hydropower, thermal power, wind power, photovoltaic and nuclear power was 5.00, 9.38, 9.58, 16.88 and 1.16gw respectively, with year-on-year changes of + 228.95%, – 29.37%, + 45.15%, + 138.42% and + 0.87% respectively. As of April 2022, the cumulative installed capacity of hydropower, thermal power, nuclear power, wind power and photovoltaic in China was 400, 13.0, 0.5, 340 and 320 million KW respectively. Among them, wind power and photovoltaic accounted for 14.11% and 13.28% of the total installed capacity respectively, an increase of 1.11 and 1.62 percentage points compared with 13.00% and 11.66% in 2021.
The investment in power engineering increased by 5.1% year-on-year, and the investment in power grid engineering increased by 4.7% year-on-year. According to the data of China electricity Union, from January to April 2022, the investment in power supply projects of major power generation enterprises in China was 117.3 billion yuan, a year-on-year increase of 5.1%; In terms of different power sources, hydropower was 22.2 billion yuan, a year-on-year decrease of 27.2%; Thermal power was 17.9 billion yuan, a year-on-year increase of 55.4%; Nuclear power was 13.9 billion yuan, a year-on-year increase of 4.5%; Wind power was 33.2 billion yuan, a year-on-year decrease of 29.1%. The investment in national power grid projects was 89.3 billion yuan, a year-on-year increase of 4.7%.
Investment suggestion: China’s epidemic situation is gradually controlled, and the disturbance to the macro economy will gradually weaken. It is expected that with the gradual recovery of the macro economy, the power demand is expected to improve, and the rise of temperature will further promote the growth of power demand. Under the background of power demand growth, the utilization hours of power equipment have rebounded, and under the tight pattern of power supply and demand, the electricity price is expected to rise, bringing marginal contribution to the performance growth of power enterprises. Suggestions: 1) thermal power is expected to usher in a profit turning point. It is suggested to pay attention to [ Huaneng Power International Inc(600011) ] [ Gd Power Development Co.Ltd(600795) ], which is the leader of thermal power and accelerate the transformation of new energy; 2) With the rapid growth of the installed capacity of offshore wind power, the decline of construction costs and the promotion of the trend of large-scale offshore wind turbines, offshore wind power operators usher in development opportunities. It is suggested to pay attention to [ China Three Gorges Renewables (Group) Co.Ltd(600905) ] [ Fujian Funeng Co.Ltd(600483) ] [ Zhongmin Energy Co.Ltd(600163) ]. 3) Nuclear power operators are expected to see both volume and price rise. It is suggested to pay attention to [ China National Nuclear Power Co.Ltd(601985) ] driven by nuclear power and Fengguang new energy;
Risk warning: policy promotion is not as expected; The project progress is not as expected; Intensified market competition; The macro-economy went down faster than expected; The public data used in the research report may have the risk of information lag or untimely update.
