Monthly report of power equipment industry

Power equipment and new energy sector underperformed the market in November

In November 2012, the broader market continued to fall. The Shanghai and Shenzhen 300 Index fell 5.11%. The power equipment and new energy sector fell 12.81% this month and underperformed the deep 300 index by 7.7 percentage points. All sub-sectors underperformed the broader market, and the booming new energy sector still dragged down the overall trend. The grid sub-sector, which was relatively stable during the previous period, also fell into the phase of valuation adjustment.

PV product prices continue to fall

In November, the prices of photovoltaic products continued to fall, the decrease in imports of polysilicon materials narrowed, the decline in domestic silicon materials expanded, and the decline in the prices of wafers, cells, and modules narrowed. At present, the Indian market has also begun a "double counter" investigation. Under the background of insufficient demand, the price increase lacks support. Near the end of the year, manufacturers are more willing to ship, and prices are expected to decline slightly.

The power consumption is still at a low level. The investment in power is low and the grid investment is stable.

In October, the electricity consumption in China’s entire society was 399.86 billion kWh, an increase of 6.10% over the same period of last year, and the growth rate rebounded. In terms of power investment, the capital infrastructure investment in January-October was 267.561 billion yuan, a year-on-year decrease of 3.05%. Among them, thermal power, nuclear power and wind power decreased year-on-year, and hydropower increased year-on-year. From January to October, the grid has completed an investment of 277.697 billion yuan, an increase of 7.08% year-on-year.

Give the industry "neutral" rating focus on performance improvement quality stocks

From the perspective of the year-round situation, the demand for primary equipment was stable, the price rebounded slowly, and the secondary orders were abundant but the prices of smart equipment declined slightly. The thermal power equipment in power generation equipment was still weak, the growth rate of hydropower was limited, and the overall profit of the new energy industry was overall. Decline, power electronics, electrical industry continued sluggish economy, power meter industry finishing profit more ideal.

This month, we continue to maintain the industry's "neutral" rating, optimistic about the continuous investment opportunities brought about by the distribution network and rural network transformation, and pay close attention to the progress of UHV construction. Individual stocks are recommended to select industries with high business climate, stable performance, and high-quality growth stocks, as well as relying on scale and technological advantages, gradually emerge from the bottom, leading industry leaders whose performance is expected to reverse, recommend Guodian NARI, Sifang, Siyuan Electric, Beijing Career, Jicheng Electronics and Senyuan Electric.