Recently, the Deputy Minister of the Ministry of Industry and Information Technology pointed out that to achieve the green development of energy equipment, first, we must vigorously develop efficient and clean coal-fired power generation equipment; second, develop advanced transmission technology and equipment and vigorously develop UHV; and third, develop the smart grid. According to industry insiders, this is the first time that senior officials of the Ministry of Industry and Information Technology have made public statements on the development of smart grids and UHVs in public, which means that power transmission equipment and related listed companies will benefit substantially in the future, and medium and long-term investment opportunities for individual stocks will emerge.

The valuation is declining year by year and the imagination space is huge

According to the statistics of the Securities Daily Market Research Center, the power transmission and transformation equipment sector has performed strongly since the beginning of this month. The proportion of the rising days in stocks reached 55%. The index closed at 5886.97 points, and the weighted average increase of 32 power transmission and transformation equipment stocks was up to the same month. 5.32%, outperformed the Shanghai Composite Index by 2.60 percentage points, the turnover rate was 48.18%, and the total turnover of the plates totaled 97.425 billion yuan.

The power transmission equipment sector performed well in March and is closely related to the long-term positive support for its performance. From the latest statistics on March 28, the dynamic TTM P/E for the sector is 44.38 times, which should be said to be at a high level, but the related research institutions' forecast for the industry's 2010 static P/E ratio has dropped to 37.92 times, and 30.94 times in 2011. In 2012, it was only 23.55 times. It can be seen that various research institutions are very optimistic about the growth of the industry's net profit. The industry's investment prospects are widely optimistic.

Specifically, Siyuan Electric Co., Ltd. has the lowest P/E ratio. The stock closed at the end of March to March 28, and its annual earnings per share is calculated at a P/E ratio of 19.04 times. The latest P/B ratio is 3.51 times. Since the month rose 1.65%. According to the 2010 annual report, the company achieved operating income of 1.88 billion yuan, a year-on-year decrease of 0.6%; net profit was 550 million yuan, a year-on-year decrease of 41.66%; net profit after deducting non-recurring gains and losses was 230 million yuan, a year-on-year decrease of 26.99%. Realized a profit of 1.26 yuan per share, basically in line with market expectations; it is planned to send 8 yuan per 10 shares. In 2011, the company plans to achieve 2.5 billion yuan in new contract orders, and realize operating revenue of 2 billion yuan. The company is one of the first domestic manufacturers to enter the production of arc suppression coils. The technology has reached the international advanced level and the market share has reached over 40%. The product has been maintained at around 50% of the total profit of the main business, and the order has maintained an increase of 30%; mutual inductance. The rapid growth of orders for equipment has benefited U.S. high-pressure development policies.

Judging from the flow of capital, this month, the power transmission equipment sector as a whole was outflow, with a total net inflow of 798.08 million yuan. This was related to the fact that the sector's index was higher than that of the profit-making, although there are still as many as 12 stocks. Monthly increase in holdings by the main funds, which points to 37.5% of the total number of stocks in the sector, total net inflow of funds 284,843,300 yuan, the average net inflow of main funds per share reached 2382900 yuan, it is worth noting that this inflow is in the A shares as a whole The net outflow of main funds was achieved by 65.790 billion yuan. The transmission and transformation equipment shares with a total net inflow of more than 10 million yuan in main funds this month are: Baili Electric, Baoguang Stock, Wanma Cable, Long March Electric, Three Change Technology and Beijing Career.

It is worth mentioning that Wanma Cable's rising pattern is better, and the main capital inflow is higher. The stock rose 8.49% in March, outperforming the Shanghai Composite Index, and the total net inflow of main funds since March was 40.708857 million yuan. The performance report showed that the earnings per share for January-December 2010 was 0.24 yuan, net assets per share was 2.67 yuan, and the return on net assets was 9.37%. The operating income was 2.134 billion yuan, a year-on-year increase of 44.56%, and the net profit was 96.211 million yuan, an increase of 10.67% over the same period of last year. The company specializes in R&D, production and sales of power cables. The products include cross-linked cables, plastic cables, overhead lines and other cables. There are more than 180 varieties and more than 14,000 specifications, of which mainly cross-linked cables, which account for the company. The main business income ratio is above 70%.

UHV construction enters the fast lane

UHV AC system refers to an AC system with a voltage class of 1,000KV. It consists of a booster substation, a line, and a step-down substation (switching station). Substation consists of transformers, busbars, circuit breakers, disconnectors, grounding switches, surge arresters, and high (low) resistances (switching stations do not include transformers). The number of equipment in the substation (especially switching equipment) is determined by the actual design of the electrical main wiring.

UHV can greatly enhance the transmission capacity of China's power grid. According to the data provided by the State Grid Corporation of China, the UHVDC power grid of the primary loop can deliver 6 million kilowatts of electricity, which is equivalent to 5 to 6 times the existing 500 kV DC grid, and the transmission distance is also 2 to 3 times that of the latter. Therefore, the efficiency is greatly improved. In addition, according to calculations by the State Grid Corporation of China, the transmission of power of the same power can save 60% of the land resources if the UHV transmission line is used instead of the 500 kV EHV line.

The national “Twelfth Five-Year Plan” outline announced on March 16, 2011 mentioned that “accommodating the requirements of large-scale cross-regional power transmission and new energy generation and grid connection, accelerating the construction of a modern power grid system and further expanding the scale of West-to-East power transmission, Improve the regional backbone network, develop high-capacity, high-efficiency, and long-distance advanced transmission technologies such as ultra-high voltage, rely on advanced technologies such as information, control, and energy storage to promote the construction of smart grids, strengthen the construction and transformation of urban and rural power grids, and strengthen the optimization of power grid configuration. Capacity and power supply reliability.” This will mean UHV transmission projects have been formally included in the National Twelfth Five-Year Plan.

The “Eleventh Five-Year Plan” is the first phase of China's power grid investment peak period, with an average annual compound growth rate of about 25%. Each province has achieved a strong UHV grid, which solves the two dimensions of power transmission and reliability; "It will be the second phase of China's power grid investment peak period, standing on the national energy strategy to build an ultra-high voltage grid, and realize large-scale energy deployment throughout the country.

This year, the State Grid focuses on advancing the UHV. From the events below this year, it is enough to attach importance to the UHV. On January 28, the UHV construction project meeting was held in Zhengzhou; during the two sessions on the 7th of the month, Academician Xue Yusheng proposed to the Secretary Hu Jintao to accelerate the development of UHV; in May, Liu Zhenya, the general manager of the State Grid, on the smart grid and UHV and Chongqing, The leaders of Jiangxi, Shandong, and Heilongjiang will hold talks; on April 17, the UHV will be included in the “Twelfth Five-Year Plan” outline, and the 12th Five-Year Plan will vigorously develop the smart grid. On May 26, Su Bo, Vice Minister of the Ministry of Industry and Information Technology, expressed at the “2011 Economic Situation and Power Development Analysis and Forecasting Conference” sponsored by the China Electric Power Enterprise Federation, that it is necessary to vigorously develop the supporting technologies and equipment for the new energy equipment industry and energy equipment manufacturing. Accelerate the promotion of green and low-carbon development of energy equipment. In particular, he pointed out that the development of advanced transmission technology and equipment, and vigorously develop UHV.

People in the industry believe that the statement made on March 26 was the first time that senior officials of the Ministry of Industry and Information Technology had made public statements on the development of smart grids and UHVs in public.

Shenyin Wanguo also pointed out that the approval and bidding for subsequent UHV projects will once again become a catalyst for the UHV sector. Benefits Listed companies include: China Xidian (UHV transformers, GIS, DC converter valves, electronic transformers), TBEA (UHV transformers), Pinggao Electric (GIS), Rongxin shares (TCSC, Reactive power compensator), Tianwei Paul (UHV transformer), Jinlihua Electric (insulator).

According to analysts from BOC International, unlike the “Eleventh Five-Year Plan”, UHV will become the “engine” that will drive the “Twelfth Five-Year Plan” grid investment, leading enterprises will benefit the most. In the "Eleventh Five-Year Plan", the annual growth rate of China's power grid investment is about 25% (excluding 2010), and EHV is the "engine" that drives this round of grid investment. The "12th Five-Year Plan" UHV will stimulate the investment in the grid to invest in a new "engine" with an investment scale of approximately RMB 550 billion, accounting for approximately 24% of the total investment in China's power grid.

According to the latest industry report, BOC International believes that the UHV industry is highly concentrated and large-scale investment will significantly increase the performance of leading companies. It is recommended to purchase XJ Electric, TBEA, China West Power, Tianwei Baobian and Pinghe. High electrical.

Smart grid "12th Five-Year" investment will grow exponentially

On March 5, the Prime Minister clearly stated in the government work report that the smart grid construction should be stepped up. The inclusion of the smart grid in the National Important Construction Project of the "Twelfth Five-Year Plan" is the only way for China to scientifically use energy, rationally allocate resources, and save energy and reduce emissions, from a big country to a strong country. The construction of a smart grid is also an urgent need in the context of rising oil prices, increasing coal consumption, excessive dependence on resources, and reduction of emissions. Smart grid construction is an inevitable choice for social development. During the “Twelfth Five-Year Plan” period, the global smart grid will still be in the initial stage of development, and it is basically at the same starting line at home and abroad. This is an important strategic opportunity for China's smart grid construction to achieve leapfrog development and lead the world.

State Grid announced in early March that it will promote the construction of 11 types of smart grid pilot projects in 2011. Among them, 67 smart substations will be built; distribution automation systems will be built in the core areas of 19 cities; 50 million smart meters will be promoted and applied; and 173 new ones Electric vehicle charging station and 9211 charging piles; completed 25 smart communities/buildings construction; promoted the construction of 62,000 households of fiber-optic power to households; completed the construction of a smart power grid integrated demonstration project of China-Singapore Tianjin Eco-City; accepted wind power capacity of 20 million kilowatts; Formulate 88 smart grid standards.

According to the plan of the State Grid, 2011 is the first year for the smart grid to enter the stage of comprehensive construction, and it is also the year after the start of the past. On the one hand, all kinds of pilots of the smart grid will continue to be fully rolled out last year; on the other hand, the various standards of the smart grid will also be introduced intensively. Among them, in the field of smart substations, last year the State Grid has completed nine and 67 new ones this year. In the field of smart meters, the number of tenders last year was about 5,000, which is the same as last year.

Shenyin Wanguo Research believes that the annual average investment in the 12th Five-Year Plan will double. "12th Five-Year" smart substation construction scale: The new 110 (66) kV and above voltage level smart substation more than 8000, substation capacity of more than 2 billion kVA.

The total investment in the first phase from 2009 to 2010 was 551 billion yuan, the smart investment was 34.1 billion yuan, accounting for 6.2% of the total investment in the grid; the second phase of the total investment in the grid was 1.5 trillion yuan, and the intellectual investment was 175 billion yuan. , accounting for 11.7% of total investment.

Guojin Securities also believes that the next 10 years will be the peak of smart grid investment. 1. The smart grid construction is an urgent national strategy: The smart grid, as a cost-effective, safe and reliable interactive power grid, is an inevitable product of China's development of new industries such as energy-saving and environmental protection, new energy, and new energy vehicles. It is in line with China’s green and economical economy. Development strategies are particularly important in the current context of high oil prices. 2. In the next ten years, the state will invest heavily in smart grids. After a two-year trial, the “12th Five-Year” smart grid will usher in a full-scale construction, and the national grid will have a planned investment of 2 trillion yuan; the “Thirteenth Five-Year” national grid will also invest 1.7 million yuan. Trillion, eventually achieving a strong smart grid.

Benefited smart substation company has listed companies such as Guodian Nanrui, Guodian Nanzi, Xuji Electric, Siyuan Electric, Sifang Stock, and Jicheng Electronics.

Guojin Securities also believes that the peak investment in smart grid information will drive the PLC industry outbreak. The PLC controller that provides the system solution in China most benefits. And we recommend recommending Neusoft carriers and Fuxing Xiaocheng.