Key investment points:
Market review: as of May 20, 2022, Shenwan power equipment industry rose 15.71% last week, outperforming Shanghai and Shenzhen 300 index by 11.39 percentage points, ranking first among Shenwan 31 industries; Shenwan power equipment sector has risen 12.98% so far this month, outperforming the Shanghai and Shenzhen 300 index by 11.45 percentage points and ranking second among Shenwan 31 industries; Shenwan power equipment sector has fallen 21.54% year to date, 4.08 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 24th among Shenwan 31 industries.
As of May 20, 2022, the six sub sectors of Shenwan power equipment industry have increased in the recent week, with the largest increase of 19.94% in the wind power equipment sector. The performance of other sectors is as follows: the motor II sector rose 12.28%, the photovoltaic equipment sector rose 18.19%, the other power supply equipment II sector rose 10.57%, the power grid equipment sector rose 12.36%, and the battery sector rose 15.29%.
Among the top ten stocks that rose last week, Clenergy(Xiamen)Technology Co.Ltd(603628) , Jiangsu Zhongli Group Co.Ltd(002309) and Shenzhen Kstar Science & Technology Co.Ltd(002518) ranked among the top three in Shenwan power equipment sector, up 53.95%, 51.53% and 44.38% respectively. Among the top ten stocks that fell last week, Taihai Manoir Nuclear Equipment Co.Ltd(002366) , Jinlongyu Group Co.Ltd(002882) and Huayi Electric Company Limited(600290) performed weakly, falling 9.43%, 0.55% and rising 0.89% respectively.
In terms of Valuation: as of May 20, 2022, the PE (TTM) of power equipment sector is 35.30 times; In terms of sub sectors, PE (TTM) of motor II sector is 30.93 times, PE (TTM) of other power supply equipment II sector is 24.24 times, PE (TTM) of photovoltaic equipment sector is 39.97 times, PE (TTM) of wind power equipment sector is 21.32 times, PE (TTM) of battery sector is 45.93 times, and PE (TTM) of power grid equipment sector is 23.94 times.
Weekly view of power equipment industry: on May 18, the European Commission announced the details of the “REpower EU” energy plan, proposing that the proportion of renewable energy will increase to 45% in 2030 from 40% before. In 2021, the European Commission will increase the proportion target from 32% to 40%. This round of increase is expected to further boost the export of China’s photovoltaic products. According to the General Administration of customs, China’s export of Cecep Solar Energy Co.Ltd(000591) batteries (including components) in April was US $3.525 billion, an increase of 74.6% year-on-year. From January to April, China’s export was US $14.954 billion, an increase of 96.2% year-on-year; Affected by the suspension of work and the obstruction of freight transportation, it decreased by 14.2% month on month in April. The impact of the current epidemic on enterprise production and freight transportation has been marginally improved, and the subsequent export is expected to achieve month on month growth. In the last week, the overall price of photovoltaic industry chain is still rising, but the price of silicon is flat month on month, the first time since 16 consecutive price increases this year. At present, the demand for crystal pulling remains strong, and the price of silicon material is expected to remain high. It is suggested to pay attention to Tbea Co.Ltd(600089) ( Tbea Co.Ltd(600089) ) benefiting from the simultaneous rise of silicon material price and volume; China National Nuclear Power Co.Ltd(601985) ( China National Nuclear Power Co.Ltd(601985) ) benefiting from the rise of market-oriented transaction electricity price and the rapid growth of Fengguang new energy power generation; Nari Technology Co.Ltd(600406) ( Nari Technology Co.Ltd(600406) ) benefiting from the recovery of infrastructure and the acceleration of UHV construction.
Risk tip: the aggravation of the epidemic in China will affect China’s transportation and export; The new supply of silicon material is less than expected, which leads to the risk that the price of photovoltaic industry chain will continue to rise; The promotion of China’s infrastructure projects and UHV construction are less than expected risks.
