This week (from January 17 to January 21), the top 10 power industry sector of China stock market news reappeared the shock. Among the 10 power enterprises monitored by the reporter of Huaxia times, 7 rose, 2 fell, and the market value of 1 remained unchanged. The increase in Huaneng Power International Inc(600011) week was 10.51%, the highest among the top 10 stocks.
This week, the total turnover of China stock market news power industry was 103.9 billion yuan, with an overall decline of 0.74%.
Datang International Power Generation Co.Ltd(601991) the power generation in 2021 increased by 1.54% year-on-year
In terms of the company, several listed companies released the power generation report of 2021 this week. Datang International Power Generation Co.Ltd(601991) issued the announcement of annual power generation in 2021 on January 20, According to the announcement, “according to preliminary statistics, as of December 31, 2021, the company and its subsidiaries have completed a total power generation of about 2729251 million kwh, a year-on-year increase of about 1.54%; the cumulative on grid power generation is about 2577157 million kwh, a year-on-year increase of about 1.56%. As of December 31, 2021, the average on grid power price of the company is 389.10 yuan / MWh (including tax).”
Previously, Huaneng Power International Inc(600011) with good stock price also released the 2021 power generation report on January 15.
According to the disclosure of the report, Huaneng Power International Inc(600011) all operating power plants in China completed 430.165 billion kwh of electricity sales according to the caliber of consolidated statements, with a year-on-year increase of 13.23%; In 2021, the average on grid settlement price of the company’s operating power plants in China was 431.88 yuan / MWh, a year-on-year increase of 4.41%. In 2021, the proportion of market-oriented trading electricity of the company was 61.63%, an increase of 3.3 percentage points over the same period last year.
For the main reasons for the increase in electricity, Huaneng Power International Inc(600011) explained that there are three points. First, the power consumption of the whole society will remain high in 2021, driving the power generation side to rise sharply year-on-year. Among them, the power generation of the company’s power plants in Chongqing, Guangdong, Zhejiang, Shanghai, Fujian, Hunan, Jiangsu, Gansu and Hubei increased more year-on-year. Second, due to the lower than expected output of hydropower, the thermal power generation with large installed capacity of the company maintained a high-speed growth. At the same time, during the peak winter, the company’s thermal power load operated at a high level, which further promoted the growth of power generation. Third, the company continued to promote green and low-carbon transformation, and new energy power generation increased rapidly year-on-year.
As for the trend of individual stocks in the sector, China Three Gorges Renewables (Group) Co.Ltd(600905) , China National Nuclear Power Co.Ltd(601985) , Huaneng Lancang River Hydropower Inc(600025) and Sichuan Chuantou Energy Co.Ltd(600674) are similar, and have been in shock during the week. The trend of China Yangtze Power Co.Ltd(600900) , Cgn Power Co.Ltd(003816) , Huaneng Power International Inc(600011) is similar to that of Sdic Power Holdings Co.Ltd(600886) , rising continuously from Monday to Thursday, and entering a correction on Friday.
According to the one week (5th) after hours capital flow of the power sector, the net inflow of small orders and medium orders in the power industry sector within five days was 25.648 billion yuan and 1.197 billion yuan. Large orders, super large orders and main net inflows were negative, respectively -13.054 billion yuan, – 13.291 billion yuan and -26.345 billion yuan.
seven departments including the national development and Reform Commission comprehensively promote green power trading
In terms of industry, on January 21, 2022, the national development and Reform Commission issued a notice on the implementation plan for promoting green consumption (hereinafter referred to as the plan).
The plan points out that it is necessary to further stimulate the green power consumption potential of the whole society. We will ensure that new renewable energy and raw material energy are not included in the total energy consumption control requirements, and comprehensively promote green power trading and green card trading. Encourage industry leading enterprises, large state-owned enterprises and multinational corporations to consume green power, play a demonstration and driving role, and promote areas with more export-oriented enterprises and strong economic affordability to gradually increase the proportion of green power consumption.
In the plan, the national development and Reform Commission stressed the need to strengthen the connection with carbon emission trading, and study the feasibility of deducting the carbon emissions related to green power in emission accounting in combination with the revision and improvement of the technical specifications of accounting reports of relevant industries in the national carbon market. Continue to promote the innovative development of intelligent photovoltaic, vigorously promote the application of building photovoltaic, and accelerate the proportion of residents’ green power consumption.
Does this mean that the green power market is coming? Zhongtai Securities Co.Ltd(600918) analyst Wang Lei pointed out in the 2022 investment strategy report of green power operators that since 2021, with the promotion of the “double carbon” target policy, the promotion of market-oriented electricity price reform, the start of green power transaction, power restriction events and other factors, the market performance of the public industry has been significantly better than the market, with significant excess returns. Among the segments of the public sector, the new energy power generation sector led the increase. In addition, in terms of performance, the new energy power generation sector also achieved significant growth.
Wang Lei believes that the growth of the installed scale of Fengguang new energy is a deterministic event, and the industry as a whole maintains a high momentum. However, we need to pay attention to the matching between the valuation, performance and the expected installed scale. The investment layout in 2022 still needs to focus on “new energy”, and the target of “two high and one low” is preferred, that is, high performance growth (corresponding to the high growth of installed scale in 2021) High increase in installed capacity (corresponding to the expected installed capacity in 2022) and reasonable or undervalued valuation.
