Power transmission industry will accelerate

Recently, the National Development and Reform Commission approved eight power investment projects with a total amount of approximately 11.4 billion yuan. Among them, there are six projects involving power transmission and transformation projects: Huainan Kongdian, Puyang Sutun (Fuyang II) two 500 kV power transmission and transformation projects, Tongling Guanshan, Hefei Zhongxing, Xinhui and Huaibei. The four 500 kV substation expansion projects in Caoxi are located in Anhui Province.

According to statistics from the China Securities Journal, since April this year, the National Development and Reform Commission approved a total of 16 transmission and substation projects. The total amount of dynamic investment announced was 3.362 billion yuan, distributed in Henan, Anhui, Ningxia, Yunnan, and Xinjiang. Jilin, mostly in the central and western provinces.

Market analysts pointed out that as the new round of infrastructure investment increases, the transmission and distribution industry boom is expected to enter the speed-up channel, the relevant companies will harvest a new batch of orders before the end of the year.

Good equipment manufacturers

According to industry insiders' analysis, the newly approved power transmission and transformation project is expected to begin construction within three years. The end of this year to the beginning of next year will be the tendering stage for equipment procurement at the beginning of the project. This stage will be mainly conducive to manufacturers of transmission and distribution equipment. Including transmission and transformation towers, power distribution equipment, etc.

Further analysis pointed out that in the case of power transmission and transformation towers, the approval of the construction project of Anhui power transmission and transformation substation may be beneficial to the model shares. The company is located in Hefei, Anhui Province. It mainly produces transmission line towers and composite insulated towers. The products are mainly lined towers of 500 kV and 750 kV. In the State Grid Corporation of China iron tower product tender, the company is the only company in the industry for the first time in five consecutive years.

As for the supply of other power equipment, companies such as Guodian NARI, Sifang, XJ Electric, Siyuan Electric Pinggao, etc. are expected to benefit. The Dongxing Securities Research Report believes that XJ Electric's DC transmission system is expected to maintain rapid growth with the successive launch of power transmission and transformation projects.

Rapid increase in boom

Several research institutions predict that by the last month of 2012, the infrastructure projects approved by the National Development and Reform Commission will enter the intensive publication period. According to a reporter from the China Securities Journal, investment, including power transmission and transformation projects, has become the highlight of infrastructure investment, and local governments have successively promoted it as a key project under their jurisdiction.

Following the approval of the National Development and Reform Commission for nearly 300 million yuan of Ningxia’s two 330-kilovolt transmission and transformation projects, the Xinjiang Autonomous Region Development and Reform Commission recently stated that in 2013, the key projects in the area will mainly include infrastructure, agro-pastoralism and new urbanization. The five major areas, and the promotion of a number of transmission and distribution projects involving the transmission of "GDD" have become one of the key tasks for implementation.

Some brokerage analysts pointed out that a series of policy trends will promote the power grid transmission and distribution industry boom into the rapid rise in the channel. According to statistics from China Communications Industry Corporation, since the beginning of this year, the production and sales volume of equipment such as wind power generation and gas turbines have continuously declined, while the transmission and distribution equipment products based on high- and low-voltage switches, large-scale transformers and power cables have maintained growth year-on-year. situation.

The BOCI Research Report believes that the grid investment will continue to grow rapidly from the “Eleventh Five-Year Plan” to the “Twelfth Five-Year Plan” to a stable investment model, and the profitability and operating cash flow of the grid companies will be relatively good. Under this background, the equipment companies have better returns from grid companies, and the risk of bad debts is very small. In the current economic situation, leading equipment companies in the power grid engineering sector will continue to maintain relatively aggressive expansion strategies, which will lead to a steady increase in revenue and revenue.