Hong Kong Stock Concept Tracking | Interprovincial electricity spot market benefits from switching to officially operating grid equipment companies (with concept stocks)

The State Grid Corporation revealed that on October 15, the interprovincial electricity spot market was officially put into operation. The inter-provincial electricity spot market is an important part of the unified electricity market throughout the country. It is an important part of the unified electricity market in the country. It is an important part of the national unified electricity market.

International Energy Agency executive director Fatih Birol said global electricity demand is growing rapidly. This growth has been driven by many factors, one of which is the rapid development of electric vehicles. Furthermore, air conditioning is a major driver of the growth in global electricity consumption, particularly in emerging markets.

The International Energy Agency said that in the next ten years, a sharp increase in air conditioning usage will have the biggest and most unpredictable impact on the world's power grid.

According to International Energy Agency researchers, the increase in income in developing countries and the rise in temperature due to climate change mean that the increase in electricity consumption for household air conditioners will far exceed the increase in electricity consumption in the entire Middle East region. Currently, 90% of households in Japan or the US have air conditioning. However, in emerging markets, this figure is very low; in Nigeria, for example, only 5% of households have air conditioning.

The Zhitong Finance App learned that Haitong Securities released a research report saying that in order to speed up the construction of a new power system, promote high-quality development of new energy sources, and promote large-scale equipment upgrading, the State Grid will invest more than 600 billion yuan for the first time in 2024, an increase of 71.1 billion yuan over the previous year.

The new investment is mainly used for the construction of UHV AC/DC projects, strengthening the connection between county power grids and large power grids, and the digital and intelligent upgrading of power grids. Haitong Securities believes that speeding up the construction of new power systems, UHV, distribution networks, etc. are key investment areas for power grids.

Power system equipment related enterprises:

Dongfang Electric (01072): In the domestic market, stabilize the market order market, consolidate and enhance the dominant position of traditional industries, and accelerate breakthroughs in new industries and fields. We must continue to take the lead in promoting water, coal, nuclear, and gas. In terms of overseas markets, domestic revenue for the first half of 2024 was 30.52 billion yuan. The year-on-year increase was 13.15%, and the overseas market achieved revenue of 2.94 billion yuan, a slight decrease of 0.19% over the previous year. The company has achieved breakthroughs in a number of key projects. The self-developed 15MW heavy gas turbine has been assembled and put off the line, and the 500MW impact turbine with the largest stand-alone capacity in the world has passed the inspection.

Shanghai Electric (02727): Order growth exceeds revenue, and the growth rate of orders for thermal power nuclear power is impressive. In 2023, the company added 137.21 billion yuan in orders, up 3% year on year, exceeding the revenue growth rate. Among them, energy equipment orders were 75.22 billion yuan, up 10% year on year, benefiting from the acceleration of thermal power and nuclear power installations. Among energy equipment orders, the growth rates of new orders for nuclear power and coal-fired power generation equipment reached 52.6% and 84.2% respectively. In 2023, new orders for wind power equipment were only 6.94 billion yuan, a year-on-year decrease of 60.8%. The main reason was the increase in wind power concentration. Leading companies received orders more concentrated, and the industrial equipment sector added orders grew at 0.5%. The growth rate of new orders in the service sector was -13.7%. Overall, orders for thermal power equipment and nuclear power equipment were the main driving force for the company's revenue.

Harbin Electric (01133): Businesses such as hydropower equipment and thermal power flexibility transformation provide new momentum. New market orders are expected to maintain a quantitative trend in the future. At the same time, pumped energy storage is developing rapidly, and thermal power flexibility transformation is one of the future development directions of the thermal power market. It is expected that the above business will be a new driving force for the company's future development.

Weisheng Holdings (03393): In the first half of the year, in China Grid's unified tender, Weisheng Group successfully obtained a contract amount of RMB 306 million, ranking second in the industry; in China Southern Network's semi-annual centralized procurement tender, Weisheng Group received a contract amount of RMB 199 million, which also ranked among the highest in the domestic grid market. The number of tenders collected by the State Grid this year increased from two last year to three. At present, the second tender for the State Grid has been completed. Next, there will be the third tender for the State Grid and the second tender for China Southern Power Grid.

Saijing Technology (00580): In 2023, the company's power grid transmission and distribution business achieved revenue of 416 million yuan, an increase of 25% over the previous year. Among them, sales revenue in the field of conventional and flexible DC transmission totaled 250 million yuan, an increase of 43% over the previous year. In terms of conventional DC transmission, the company intensively started and delivered ±800 kV UHV conventional DC transmission projects such as “Jinshang-Hubei”, “Longdong-Shandong”, “Ningxia-Hunan”, and “Hami - Chongqing”, with a total revenue of 190 million yuan. In terms of flexible DC transmission, the company intensively started and delivered projects such as the “Hangzhou Low-Frequency Transmission Demonstration Project”, the “Yangjiang Qingzhou Offshore Wind Power Transmission Project”, and the “German BorWin6 Offshore Wind Power Transmission Project”.