Electrical equipment industry: the growth of power equipment has slowed down, and the recovery of new energy is obvious

Key takeaways:

The power equipment sector grew steadily, and the new energy recovery was obvious.

In the statistical sample of new energy listed companies in power equipment, a total revenue of 538.4 billion yuan was achieved in 2014, a year-on-year increase of 9.0%; The net profit was 27.1 billion yuan, a year-on-year increase of 11.6%. Among them, the growth rate of power equipment and new energy revenue was 4.1% and 15.8% respectively, and the growth rate of net profit was 0.3% and 34.3% respectively. In 2015Q1, the total revenue was 114.6 billion yuan, a year-on-year increase of 10.7%; The net profit was 4.7 billion yuan, a year-on-year increase of 13.2%. Among them, the growth rate of power equipment and new energy revenue was 2.9% and 20.1% respectively, and the growth rate of net profit was -8.5% and 62.0% respectively. The growth rate of power equipment revenue and net profit has slowed down, the recovery of new energy has been obvious, and the profitability has increased significantly.

The domestic demand of the wind power industry has expanded, and the prosperity is relatively high.

In 2014, the wind power sector achieved revenue of 35.8 billion yuan, a year-on-year increase of 28.5%; The net profit was 2.7 billion yuan, a year-on-year increase of 135.1%. Among them, the wind power manufacturing sector recovered significantly, with revenue increasing by more than 30% year-on-year and net profit increasing by 196% year-on-year. Benefiting from the rush to install wind power and the introduction of the renewable energy quota system, we expect that the new domestic installed capacity of the wind power industry in 2015 will be about 25GW, and the industry prosperity will remain at a high level.

The overcapacity of photovoltaic manufacturing has been alleviated, and the operating income of downstream power stations is good.

In 2014, the photovoltaic sector achieved revenue of 38.8 billion yuan, a year-on-year increase of 27.3%, and a net profit of 2.3 billion yuan, a year-on-year increase of 20.8%. Benefiting from the strong support of national policies for the photovoltaic industry, the photovoltaic industry has gradually recovered, the operation of downstream power stations has developed well, and the cash flow has improved significantly.

The growth of new energy vehicle sales has boosted the demand for lithium batteries.

In 2014, the lithium battery sector achieved revenue of 165.6 billion yuan, a year-on-year increase of 11.1%, and a net profit of 5.8 billion, a year-on-year increase of 15.9%, of which the module sector performed eye-catchingly, with a revenue of 19.9 billion yuan in 2014, a year-on-year increase of 37.4%, and a net profit of 900 million yuan, a year-on-year increase of 25.2%. Benefiting from the rapid growth of new energy vehicle sales, the demand for lithium batteries is expected to grow significantly.

The power equipment sector was stable as a whole.

Benefiting from the promotion of UHV construction, the income and profitability of the high-voltage sector are better. Sectors such as low-pressure and protection monitoring have been affected by the macroeconomic downturn and growth has slowed.

Focus on power reform and opportunities in photovoltaic, wind power and new energy vehicles, and focus on Nandu Power, Senyuan Electric, Sungrow, Rainbow Refining, iKang Technology, Goldwind Technology, Capchem, BYD, and EVE Energy.

Risk warning: the risk of a slow macroeconomic recovery; The risk of a lower-than-expected recovery of new energy.