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Service Hotline Polestar Transmission and Distribution Network News: Wanlian Securities said that with the orderly progress of the resumption of work, the demand for related parts will blow out. It is recommended to pay attention to the UHV industry chain.
State Grid's over 3000 power grid projects resume work and production
The State Grid announced a substantial increase in grid investment for 2020. The total investment for the whole year will be raised from 408 billion yuan planned at the beginning of the year to 450 billion yuan, an increase of 42 billion yuan, an increase of 10.3%. On March 22, State Grid spokesperson Wang Yanfang said in an interview with CCTV that this year the company "arranged an investment of 450 billion yuan in power grid projects, which will effectively drive social investment to 900 billion yuan, with a total scale of more than 1.3 trillion yuan."
Analysis believes that for electric power central enterprises, it is an urgent task to promote stable growth to hedge the impact of the epidemic and drive the recovery of the industrial chain, and the huge investment in UHV projects has the most direct effect. State Grid previously mentioned in a press release on resumption of work and production that the company's annual UHV construction project investment scale of 181.1 billion yuan, which can drive social investment of 360 billion yuan, the overall scale of 541.1 billion yuan.
Wanlian Securities stated that the State Grid Corporation of China has studied and compiled the "Preliminary Work Plan for UHV and Trans-provincial AC/DC Projects of 500 kV and Above in 2020", which clearly will accelerate the approval of the 5 AC and 5 UHV projects within the year and the preliminary work. Currently, more than 90% of the State Grid projects have resumed work. With the orderly progress of the resumption of work, the demand for related parts will blow out. It is recommended to pay attention to the UHV industry chain.
Huachuang Securities stated that the power grid investment is expected to be restored, and the UHV construction is expected to boost the performance of related companies. With the deployment of the State Grid’s key tasks in 2020, a new round of UHV construction has confirmed the approved start schedule, with an investment scale of over 100 billion yuan. Another three UHV DC projects are on the agenda. At the same time, the relevant staff of State Grid stated that the investment amount this year is expected to reach 450 billion yuan, the annual power grid investment is expected to be revised, and the performance of the power equipment company is expected to be restored. Continue to recommend: Guodian Nanrui; Suggested attention: State Grid Xintong, Xu Ji Electric, TBEA, Baobian Electric, Changgao Group, Fengfan shares, Huijintong, etc.
BOC Securities pointed out that, in combination with the construction scale of subsequent UHV projects, and considering the possible construction pace of “delivery first, then direct”, assuming that the current share of major equipment companies in the future bidding is basically stable, it is expected that the leading companies in the exchange of GIS combined electrical appliances will be flat Gao Electric is expected to take the lead and benefit deeply from the acceleration of UHV construction. In addition, traditional main equipment suppliers such as Guodian Nanrui, Xu Ji Electric, China Xidian, TBEA, etc. are also expected to receive considerable orders. Guodian Nanrui is recommended, and it is recommended to pay attention to Pinggao Electric, Xu Ji Electric, and China Xidian , TBEA, etc. In addition to UHV main equipment, subsequent UHV construction will also drive the demand for auxiliary equipment and related supporting UHV, high-voltage lines and substation equipment. It is recommended to pay attention to Changgao Group and Siyuan Electric.
Guohai Securities believes that this year's UHV construction project has a clear investment scale of 112.8 billion yuan, which can drive social investment of 223.5 billion yuan, and the overall scale is nearly 500 billion yuan. "Five Jiao" will be approved within this year, among which Nanyang-Jingmen-Changsha will be approved this month. The two special direct projects will be approved in June and December. In addition to the 2018 plan, the State Grid will add three new special direct project plans, and the pre-feasibility study is expected to be completed in June. The upper level has proposed seven new infrastructure sectors including UHV. The acceleration of UHV construction is determined, vigorous, and progress fast, which can stabilize the economy and stabilize employment in special periods.
The UHV construction peak is coming, which directly benefits the main equipment vendors. UHV has extremely high technical requirements for core equipment such as GIS, transformers, and converter valves. At present, only a few domestic companies can meet the supply requirements. The main equipment manufacturers participating in the bidding enjoy a better industry structure and better gross profit margin. The centralized construction of UHV will bring high performance flexibility to core equipment manufacturers, and the performance of 2021-2022 will be released in a concentrated manner.
Under the background of stabilizing the economy and stabilizing employment, new infrastructure such as UHV will play a huge role. UHV approval, construction, and delivery are expected to be accelerated. From the perspective of performance flexibility, Pinggao Electric and Xu Ji Electric are recommended, and China West Electric is recommended , From the perspective of performance continuity, Xu Ji Electric and Guodian NARI are recommended, and it is recommended to pay attention to other related targets on the grid side.