Hottest power equipment industry 2018 interim repo

Summary of the 2018 interim report of the power equipment industry: enterprise differentiation, focus on the leader

the performance of the power equipment new energy industry in the first half of the year increased year-on-year, and Q2 performed better than Q1: in the first half of 2018, 93 listed companies in the power equipment new energy industry achieved an overall revenue of 224.698 billion yuan, an increase of 15.08% year-on-year; The net profit attributable to the parent company was 19.65 billion yuan, with a year-on-year increase of 36.81%. In terms of quarters, the revenue of 2018q2 increased by 43.85% month on month, and the net profit attributable to the parent company increased by 59.03% month on month

the profitability of the new energy vehicle sector is under pressure, and the link differentiation is obvious: in the first half of 2018, the 28 listed companies in the new energy vehicle sector achieved an overall net profit attributable to the parent of 5.349 billion yuan, a year-on-year decrease of 1.59%. Enterprises are generally under certain profit pressure, mainly due to the decline in subsidies and the impact of raw material costs. Specific to the segments and companies, the performance differentiation is relatively obvious. Among them, the growth rate of net profit attributable to the parent company in anode and cathode materials and lithium battery equipment was the highest, reaching 23% and 47% respectively; After deduction, the growth rate was 30% and 53% respectively. Enterprises in electrolyte and structural parts generally experienced a decline in profits. Lithium battery links are clearly differentiated. Leading enterprises have stronger bargaining power and capacity digestion channels with better quality products, and the concentration improvement trend is strengthening

the Fengguang storage sector fluctuated under the influence of policies, and the leading performance was stable: in the first half of 2018, 28 listed companies in the Fengguang storage sector achieved a total net profit attributable to the parent. 2. The friction plate should be wiped clean with acetone after each experiment, with a year-on-year increase of 543.28%. Among them, the differentiation of photovoltaic enterprises is relatively obvious. Affected by the policy, more than half of the enterprises' profits have declined, and even negative growth of more than 100% has occurred. Leading enterprises remained stable and their profits maintained growth. The wind power sector is also divided. The current recovery logic of the industry has been constantly verified. The performance of leading enterprises slightly exceeded expectations, while the rest of the enterprises fell

looking forward to the second half of the year, looking for certainty: from the degree of certainty, we believe that the new energy vehicle consumption market will come under the promotion of the triple catalyst. In the second half of the year, new energy vehicles focus on three main investment lines: 1) centralization, with key recommendations: Ningde times and Yiwei lithium energy; 2) High nickel, key recommendations: Shanshan shares, dangsheng technology, new Zebang. 3) Globalization, key recommendations: putailai, Hongfa, xinzhoubang, Sanhua intelligent control, Xusheng, Xingyuan material, etc. The margin of the wind power sector has improved significantly, the industry has ushered in a triple bottom, and the degree of certainty of future growth is high. We maintain our key recommendations. It is suggested to focus on Hong Kong stock operators such as Datang new energy, Huaneng new energy and Longyuan Power, which have significantly benefited from the improvement of wind abandonment rate. In the field of industrial control, we believe that the steady increase in demand + import substitution is the driving force for the high growth of industrial automation enterprises, and we mainly recommend platform companies Huichuan technology and meggitt. In the field of power equipment, the tide of power distribution construction is coming, and Guodian Nari, Chint and Nader are recommended

risk tips: 1) macroeconomic or external business environment deterioration; 2) The price of main raw materials rose rapidly; 3) The sales volume of new energy vehicles is less than expected or the competition pattern of the industry is deteriorating; 4) The recovery progress of wind power is lower than expected; 5) The recovery of manufacturing industry is lower than expected

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