Market review: from May 16 to May 20, the power, environmental protection, gas and water sectors rose by 1.51%, 1.57%, 1.14% and 0.02% respectively, and the CSI 300 index rose by 2.23% in the same period.
Production profile of national power industry from January to April 2022: 1) power consumption: affected by the impact of the epidemic, the power demand continues to decline; Shanghai reappears Hubei’s dilemma, and Jiangsu is most affected; 2) Power generation: the rainstorm in the South increased the output of hydropower in the southwest, and the thermal power continued to decline; 3) Utilization hours: water, wind and light continue to rise in March, and fire and nuclear continue to reduce load; 4) New installed capacity: 5.4gw of wind and light are added in a single month, with an increase of 2.3gw year-on-year; 5) Project investment: the monthly investment of wind and light exceeds 10 billion.
The curtain of state-owned assets reorganization in the environmental protection industry will start: on May 18, the State Council Leading Group Office for state-owned enterprise reform held a special promotion meeting on deepening the reform of state-owned holding listed companies. The meeting pointed out that we should continue to strengthen the injection of high-quality assets into listed companies; On May 19, Cecep Environmental Protection Equipment Co.Ltd(300140) issued the announcement of planning major asset restructuring, and planned to issue shares and pay cash to purchase the solid waste assets of China environmental protection group. We believe that the promotion of major asset restructuring will help revitalize the state-owned high-quality solid waste treatment assets, release more market value and optimize its asset structure. With the reform of state-owned enterprises entering the deep-water area, the asset securitization of the environmental protection platform under state-owned assets is expected to speed up, realize the efficient utilization of resources, and then promote the scientific and technological innovation, quality and efficiency improvement of the environmental protection industry.
Investment suggestion: Although the temperature is on the high side, affected by factors such as epidemic control, the added value of industries above Designated Size in China decreased by 2.9% year-on-year in April, including the manufacturing industry decreased by 4.6%, and the demand for electricity continued to be sluggish. In April, two regional rainstorms in the South promoted the significant increase of hydropower output in Sichuan, Yunnan and other places, and it is expected to continue the prosperous situation of supply and demand in May; With the rapid development of hydropower, the superimposed demand continues to weaken, and the output of thermal power further declines. The market transaction price in Guangdong and other places has begun to reflect the changes of supply and demand. The pressure on the downstream user side is expected to be relieved, and the subsequent transmission effect to the upstream price is also worth looking forward to. The hydropower sector recommends China Yangtze Power Co.Ltd(600900) , and carefully recommends Sdic Power Holdings Co.Ltd(600886) , Huaneng Lancang River Hydropower Inc(600025) ; Recommended for thermal power sector Shenergy Company Limited(600642) ; China National Nuclear Power Co.Ltd(601985) , recommended by nuclear power sector, and Cgn Power Co.Ltd(003816) , recommended with caution; China Three Gorges Renewables (Group) Co.Ltd(600905) , recommended by scenery operation, and Longyuan Power is recommended with caution. The “promotion meeting” is expected to accelerate the integration of stock assets of state-owned environmental protection platforms and promote the improvement of quality and efficiency of the environmental protection industry. It is suggested to pay attention to state-owned environmental protection enterprises with the possibility of asset injection: Cecep Guozhen Environmental Protection Technology Co.Ltd(300388) , Chongqing Water Group Co.Ltd(601158) under cecep, Chongqing Sanfeng Environment Group Corp.Ltd(601827) under Ceci, Shanghai Environment Group Co.Ltd(601200) , Guangxi Nanning Waterworks Co.Ltd(601368) under Nanning Jianning water, and Guangxi Bossco Environmental Protection Technology Co.Ltd(300422) , under Guangzhou environmental protection investment group.
Risk tip: declining demand; Price reduction; Rising costs; Reduction of precipitation; Local financial pressure; Policy promotion lags behind.
