Summary:

      A few days ago, Zhang Guobao, director of the National Energy Administration, stated at the national rural power grid renovation and upgrading work conference that from this year to 2012, a three-year new round of rural power grid upgrading will be launched, and this year the country will invest 12 billion yuan in capital. According to the calculation of the proportion of investment in reconstruction of rural power grids since 1998, the scale of investment in rural power grid reconstruction will exceed 200 billion yuan in the next three years. Under the influence of this good news, the relevant listed companies of transmission and distribution, and low- and middle-voltage electrical appliances have become active in the market. What are the substantial benefits of rural electricity grid reconstruction for the power sector and how does the performance of related listed companies improve? This newspaper interviewed industry experts and some company executives.

The three-year new round of rural network upgrading will soon begin.

Recently, news from the Development and Reform Commission National Rural Power Network Transformation and Upgrading Conference said that this year, the country will allocate 12 billion yuan of financial funds for the transformation of rural power grids, and at the same time, the scale of rural power grid reconstruction investment will exceed 200 billion yuan in the next three years.

In this regard, the industry believes that the new round of upgrading and upgrading of rural power grids is of great significance, and the investment effects it brings will not only make the power equipment industry generally benefit, but will also benefit copper-smelting and processing listed companies.

Three-year investment will exceed 200 billion yuan

Power equipment industry benefits

At the National Development and Reform Commission meeting held on July 12-13, the National Development and Reform Commission held the meeting. Zhang Guobao, deputy director of the National Development and Reform Commission and director of the National Energy Administration, said that China will start a new round of upgrading and upgrading of rural power grids. A new rural power grid with safe, reliable, energy-saving, environmental-friendly, advanced technology, and standardized management will be built.

It is reported that the country will allocate 12 billion yuan of fiscal funds each year for the transformation of rural power grids. The annual investment in rural power grids will not be lower than the previous year in the next three years. It is expected that the upgrading and upgrading of rural power grids this year will drive at least RMB 60 billion investment, and the three-year investment scale will exceed RMB 200 billion.

In response, many analysts believe that the new round of rural power grid transformation and upgrading is of great significance, and the investment effects it brings will make power equipment companies generally benefit. It is reported that in the first rural power grid reconstruction conducted in 1998, of the 462.2 billion yuan invested by the state, nearly 300 billion yuan was used to purchase power equipment and materials.

In addition, reports from Essence Securities also pointed out that the rural network voltage level is mainly concentrated in the 110kV and below, the equipment requirements are relatively low, single-device manufacturers market share is low. The increase in investment in the upgrading of rural power grids will benefit the entire industry, including 110kV and below primary equipment and substations, and distribution network secondary equipment manufacturers.

Power distribution companies gear up

Related product capacity is expanding

In an interview with reporters yesterday, some listed companies in the manufacturing of electrical equipment also confirmed the positive effect of the reform of the rural network on the company.

“The state will have a large investment in this area and the demand for upgrading transformers and switches will increase. This will certainly have a good impact on the company.” Yesterday, Luo Kemei, a representative of Huayi Electric Securities Affairs, was interviewed by this reporter. Road.

It is worth mentioning that Huayi Electric is currently promoting private placement, and the company intends to issue 90 million shares to raise 1.145 billion yuan. Among them, about RMB 111 million and RMB 180 million were used to raise funds for investment in the technological transformation projects of inflatable high-voltage switchgear production lines and the research and development of intelligent distribution equipment and industrialization projects.

Luo Kemei stated that the outdoor pole lighting products planned to increase production in the raised investment project can be used in large quantities for rural power grid reconstruction. At present, the company has sufficient orders and it is expected that the overall order volume this year will increase by about 20% from last year.

Just as it was listed at the beginning of February 2010, Beijing Career, whose main business is the development, production and sales of 12kV power distribution and control equipment, has also become the focus of attention of various brokerage research institutions.

According to a research report from China-Thailand, the recloser and fault indicator mainly produced by Beijing Career can be said to be the most directly benefited from the rural power grid reconstruction project, and it is also the core product of intelligent distribution automation. The future development space is vast. It is expected that the EPS of the company in 2010 will be 0.74 yuan, and the current stock price will be 23.3 yuan, corresponding to a dynamic price-earnings ratio of 31 times in 2010.

In an interview yesterday, Ms. Xu, the representative of Beijing Career Securities, also said that although the news about the reform of the rural network has just come out, the specific impact on the company is not yet clear, but it is expected that as the company raises investment projects and expands production capacity. No matter if it is a rural or urban network transformation, it can meet relevant needs.

According to the prospectus published on the eve of the listing of Beijing Career in February of this year, the company said that after the capital investment projects are put into production, the company’s main products will increase the annual output of intelligent RMUs from 2,000 to 7,400, and the fault indicator will be changed from year to year. The production of 160,000 only increased to 360,000, and the recloser was increased from 300 to 1,300 per year.

Interestingly, the company had said at that time that due to the expansion of production capacity, the company might have sales risks due to lack of market development capability, market expectations, and increased production capacity. From the current point of view, this can be described as "as early as hurry to catch up."

1.17 million tons of copper or copper

Copper processing smelting enterprises hitchhiking

Cables and wires are the largest consumer terminals for copper metal in China. Every year, the power grid construction has a large demand for copper metal. Therefore, in the current wave of investment in rural power grid renovation, in addition to the direct benefit of electrical equipment manufacturing companies, listed companies in copper smelting and processing industries will also take this “ride”.

According to Shanghai Nonferrous Network, an authoritative service provider for nonferrous metals market from the domestic authority, according to the current domestic copper consumption structure, the use of copper in the power grid will account for 50% of the total. In 2009, China’s copper consumption reached 5.4 million tons, of which approximately 2.7 million tons were used for power grid construction. That is to say, 883 tons of refined copper will be consumed for every 100 million yuan invested in the power grid.

Therefore, Shanghai Nonferrous Network expects that according to this ratio, China will invest 200 billion yuan in rural power grid reconstruction in the next three years and it will consume about 1.75 million tons of refined copper.

“(Construction of rural power grids) will surely have a positive effect on copper consumption and copper prices. Enterprises including copper smelting and copper processing will all benefit.” In response, yesterday, Zhang Fang, a non-ferrous metal industry analyst at CSC An interview with this reporter said. Reporter Xie Xie