Low-voltage appliances usher in a period of rapid growth

At the end of 2895, the restart of nuclear power finally took a substantial step forward. The State Council has passed the "Nuclear Safety Plan" in principle, and the examination and release have gradually come to an end. The concept stocks of nuclear power will usher in short-term opportunities. In April, most of the major power equipment production in April was down year-on-year. The low-voltage switch panel still had about 11% year-on-year growth. Related company stocks trends China Merchants Securities 12.670.000.00%, indicating that the industry is still expanding moderately. It is recommended to focus on the stocks of the two major OEMs and low-voltage appliances that have relatively more positive growth.

A substantial step was taken in the restart of nuclear power. At the State Council's executive meeting at the end of May, the 12th Five-Year Plan for the Prevention and Treatment of Nuclear Safety and Radioactive Pollution and the Long-Term Vision for 2020 were adopted in principle, and a major step forward was made in the restart of nuclear power. In the next step, the “Mid-term and long-term development plan for nuclear power development” formulated by the National Energy Administration will also be included in the approval process, and the restart of nuclear power is just around the corner. After the restart, the first ones to start will be coastal nuclear power plants that have already undergone pre-engineering and expansion projects of nuclear power plants that have already been completed. After the start of bidding, it is expected to increase the orders for nuclear power equipment of the two major OEMs and ensure the revenue of nuclear power equipment for 14 years and beyond.

From January to April, the growth rate of power investment has dropped significantly. From January to April, the power supply investment only increased by 4% year-on-year, and the growth rate dropped sharply from the previous March. The main reason was that while thermal power investment declined by 29%, wind power also saw negative growth, and hydropower and nuclear power investment growth also fell sharply from last month. Although the increase in hydropower investment has declined, it remains at a high of 18%. Hydropower investment is highly certain and it is expected to maintain rapid growth during the year.

The output of thermal power and hydropower equipment declined, and the low-voltage switch maintained growth. From January to April, the output of thermal power equipment continued to decline, and boilers, steam turbines and other equipment all fell by 10-40%. Turbine output fell at a high rate compared to the same period of last year. It fell 18.38% in January-April. The output of low-voltage switches continued to grow year-on-year in the context of declining investment in fixed assets, with a growth rate of 11%. The low-voltage electrical appliance market is expected to continue its rapid growth and seize the foreign capital market.

Double anti-induced photovoltaic product prices stabilized recovery. In May, polysilicon prices fell by 2.3%, and the decline continued to narrow. The price of wafers and batteries all rebounded from the trough, which was mainly due to the increase in tariffs caused by the dual reverse ruling that led Chinese battery makers to raise prices. At present, the demand for batteries remains sluggish. Although prices have rebounded in the short term, wait-and-see mood is still strong. It is expected that the short-term rebound of photovoltaic products will not be sustainable.

The gains were slightly lower, and valuations remained high. In May 2012, the power equipment sector saw a decrease of -0.25%. During the same period, the Shanghai-Shenzhen 300 Index rose 0.22%. The performance of the Shanghai-Shenzhen 300 Index was not as good as that of the broader market, which was 0.47% higher than the broader market. The rolling price-earnings ratio of the power equipment sector is relatively high at 28 times, ranking fourth in the industry.