The electric power equipment sector continued weak overall adjustment. As of 29 closing, sector over the past 1 months of decline of 13.96%, compared to the CSI 300 index down 6.03 percentage points. This year, the power equipment sector's poor performance, because of the new energy industry downturn due to breakdown of the plate fell more than the power generation and power grid investment is experiencing large decline in the growth rate of a cycle, equipment performance reversal, Smart Grid Construction Co. of lower than expected overall are the main cause of drag plate. Although on the whole network equipment sector profitability is acceptable, but the power equipment industry is still a continuation of last year's decline in valuation.
Hongyuan securities analyst said, after the fundamental adjustment and long-term valuation adjustment, the current power equipment sector overall valuation of 22 times, there is a structural opportunity. Only from the level of valuation, the market in the horizontal contrast, the whole plate does not appear to underestimate investment opportunities. But broken down, a device with power electronic equipment performance next year is expected to improve, then the valuation is expected to decline sharply, and the emergence of investment opportunities.
Enter the four quarter, electricity demand began to rebound. With the profitability of the project approval and accelerate the improvement of thermal power enterprises, thermal power investment will continue to rise. The industry believes that the investment in power grid next year still maintain low growth rate, but the scale will not fall, will emphasize the construction of UHV power network, the construction of overseas investment, and intelligent power grid construction.
After the eighteen Congress, support for low carbon environmental protection energy conservation policy to further increase.Recently, the Ministry of Finance website issued the "energy-saving products Huimin project energy-saving distribution transformer to promote the implementation of rules". This policy is a positive signal, reflecting the next year the government strong support for environmental protection and energy saving industry. As the power grid energy-saving products, and vigorously promote the Power Grid Corp in the state financial subsidies to support, the application of amorphous alloy transformer in distribution network will be faced with explosive growth.
