Smart grid development direction clear investment into rapid growth period

Since the smart grid investment was lower than expected in the first 7 months of this year, the related stocks fell nearly 40% , but with the smart grid first bidding in July and the second tender in September before and after the launch, the agency is expected to reverse again. Some institutions believe that smart grid investment is about to enter a period of rapid growth. The long-term growth potential and development opportunities brought by smart grid construction to secondary equipment companies are expected to absorb the high valuation risk existing in the secondary equipment sub-sector.

The development direction of the smart grid has been clarified, which will accelerate the pace of investment in the industry. Shanghai Securities believes that the tendering situation of grids in January-August was lower than expected, and the bidding speed for smart grid pilots was slowing down, mainly because the development direction of smart grids was not clear, and the key technical standards for smart grids were not issued. This situation is changing: On June 29 , the "Smart Grid Key Equipment (System) Development Plan" and "Smart Grid Technology Standard System Plan" were issued. Shanghai Securities believes that “ the introduction of these two plans indicates that the direction of smart grid development is basically clear. ”

Smart grid or usher in the peak of development. In early September , State Grid announced the second batch of smart grid tendering project announcements in 2010. The nine substation projects involved in the tender were six pilot projects of the second batch of smart substations of the State Grid. According to China Creation Securities, this means that the construction of smart grids will continue to advance. In 2011 , it will usher in the peak of construction. " The number of tenders significantly exceeded that of the previous: this tender is the second round of bidding for the national grid for the smart grid, including 11 transformers, 297 transformers, 153 interval breakers, 12 circuit breakers, and 50 isolation switches. 187 surge arresters, except that the number of transformers is the same as that of the first batch, the number of transformers is increased by 200 , the number of combinational appliances is increased by 101 , the number of circuit breakers is increased by 9 , the number of isolation switches is increased by 39 , and the arrester is increased by 103 . The primary equipment manufacturer is undoubtedly a huge advantage. "

The growth potential of smart grids is expected to absorb the risk of high valuations. Huatai United Securities believes that investment in UHV investment and smart grid construction will soon enter a period of rapid growth. This will give a positive outlook on the long-term development prospects of primary equipment sub-sectors and secondary equipment sub-sectors; power infrastructure investment, new generation capacity and cumulative power generation capacity. Both have maintained rapid growth and the revitalization plan for the emerging energy industry is expected to reach a huge scale of RMB 5 trillion. There is no reason not to favor the investment value of the power equipment sub-sector. At the same time, due to the long-term growth potential and development opportunities brought by smart grid construction to secondary equipment companies, it is expected to absorb the high valuation risk existing in the secondary equipment sub-sector. China Chuang Securities believes that secondary equipment is expected to usher in peak delivery next year: From the date of delivery of this tender, most of them are concentrated at the end of this year, and no later than mid- 2011 , so it is expected that by the end of this year The installation of the secondary equipment will begin, and it is expected that the benefits of these smart substations for secondary equipment will be reflected in 2011 .

Winners in the first batch of tenders are likely to continue to maintain their advantages. According to the list of successful bidders announced on August 17 , a total of 14 companies won the bid, involving 7 listed companies, namely China West Power, Guodian Nanzi, Guodian Nanrui, Xuji Electric, Pinggao Electric and Changgao Group. And TBEA. Huachuang Securities believes that China Xidian and TBEA have strong advantages in the field of transformers. In the first batch of tenders, China West Power occupies 72.73% of the market share; transformers concentrate this time, which is favorable for Guodian Nanzi and Guodian South. Rui, XJ Electric, Siyuan Electric, State Power South has a market share of about 85% since the first batch of tenders; the number of newly added combinational appliances is higher, which favors Pinggao Electric and China Xideng, occupying 30% and 37% respectively. The market share; ChangGao Group, the leading company of isolation switch switch, the isolation switch in the first batch of bidding was all won by Changgao Group; the lightning arrester was good for China Xidian, and the first batch of tenders in which China Westpower accounted for 71% of the market share. .