Power equipment industry ultra high voltage and distribution network market strong progress

Investment opportunities in the power equipment industry are still structural. The number of power equipment sectors fell by the first time in the year, but the current industry fundamentals are improving, including the increase in bidding prices, the decrease in raw material costs, and the gradual increase in smart grid investment. The growth rate of power grid investment in 2012 is expected to be between 10% and 15%. The focus of investment will be mainly on UHV construction, grid intelligence, and distribution network construction. Therefore, the sector investment opportunities will also be structural, that is, around the grid investment side. Focus on expansion.

UHV began to increase speed. In view of the approval of the Huainan-Shanghai line at the end of September and the imminent adoption of the recent Jin-Southeast-Jingmen demonstration line pressure acceptance, coupled with the depth adjustment of the UHV sector in the past year, investment opportunities have already emerged and are expected to continue throughout next year. annual. In the next few years, investment in UHV AC substations will be approximately RMB 117.6 billion, while investment in UHV DC converter stations will be approximately RMB 142 billion. We have accordingly calculated the elasticity of AC and DC UHV revenues of listed companies, Pinggao Electric and Dalian. Electric porcelain, China West Electric and XJ Electric (XJ Group) ranked first.

Smart grids are rolling out from pilot sites. In all aspects of the smart grid construction, we are most concerned about the substation intelligence and the intelligent distribution network. After the trials have been completed and the standards have been improved, we expect that next year will be a full year for smart grid substations and distribution. Among transformer stations, electronic transformers, on-line monitoring equipment and system integration will benefit the most; while distribution networks benefit from the expansion of urban and rural power grids and distribution network automation pilots, it is expected to maintain a high degree of prosperity.

Power electronics technology runs through the construction of smart grids. From the breakdown of power electronics technology, we are still optimistic about the continued popularization of photovoltaic inverters, wind power converters, high-voltage inverter industry and contract energy management models for new energy access, reactive power compensation and active power quality control. Filtering and other directions, it is recommended to pay attention to the leading companies and companies with technological advantages and expansion capabilities.

The focus is on listed companies. Based on the above investment logic, we mainly recommend Pinggao Electric, the leading power and electronics company in the power electronics industry, and XJ Electric Co., Ltd. with the expectation of integration, and Shenyuan Electric with focus on distribution network construction and power quality control. Leading the industry, Xinlian Electronics, EMC's forerunner Zhiguang Electric and the potential growth of many of the combustion control technology.