Electrical Equipment: Opportunities for power transmission and transformation industry are better than power generation industry

In the near future, some listed companies announced performance forecasts. We conducted analysis and evaluation according to various sub-sectors and explored the overall industry opportunities in 2012.

The wind power industry - when to recover remains to be seen: The wind power industry has not seen any signs of improvement, and it has begun to transfer to the parts suppliers. Here we do not recommend, it is still necessary to observe the prospect of prosperity in the wind power industry.

Nuclear power equipment - The business will decline next year: From the current annual reports of nuclear auxiliary equipment and upstream material companies, the manufacturers of nuclear power auxiliary equipment, including conventional islands, fans, hanging baskets, monitoring and other auxiliary equipment, are the ones most affected, but Which should consider the above companies affected by other business drag. According to the characteristics of the construction cycle of nuclear power, once the follow-up progress is stagnant, the nuclear power main equipment will be the fastest affected, followed by nuclear power auxiliary equipment, and finally nuclear power upstream materials. We expect that the nuclear island equipment will be affected as soon as next year, and the breakdown of follow-up orders by auxiliary equipment manufacturers will also cause business decline.

Primary Equipment - Attention to Structural Opportunities: Although the equipment manufacturers market is not as fierce as wind power, it is also dismal. The first is the completion of the basic construction of cross-regional power grids in China, which can be confirmed by the M-type tendering voltage level last year. The next equipment will be biased towards the construction of UHV and rural power grids; on the other hand, State Grid is brewing the comprehensive construction of the smart grid. Last year was the first year of full-scale construction of smart grid planning. The State Grid has completed all the smart pilots. This year's smart bidding volume will break out. In terms of total tenders for the State Grid in 2012, there are still investment opportunities. However, it may not be full bloom. It is recommended to pay attention to listed companies that benefit from structural changes and listed companies in the State Grid Department. These companies will enjoy more cakes in the future: TBEA, Pinggao Electric, and Conviction Electric.

Secondary Equipment - Concerned about reversal of outbreak opportunities: Secondary equipment was also affected by the overall State Grid tendering and structural changes in tenders. Among them, leading companies benefited from the upgrade and construction process of smart grids, and they all recorded positive growth. The listed companies in the subdivided industries below have experienced a decline in sales performance due to changes in the structure of the tendered subdivided products, or the failure of the tendered products to upgrade as expected, and sales have declined or failed to increase.