The situation at home and abroad has changed a lot this year. The domestic A-share market has fluctuated greatly. In the face of repeated epidemics, uncertainty about economic recovery has increased, which has hindered enterprises from deepening their carbon neutrality reform path. However, there is still continuous policy follow-up, and continuous refinement and specificity. The so-called obstruction is unrelenting. Since 2022, the popularity of carbon neutrality has continued. China's carbon neutrality and related policies have been voiced frequently to encourage the accelerated development of the low-carbon industry. Based on the current situation, the overall path of carbon peak and carbon neutrality in the high-carbon industry has been corrected, and more specific arrangements have been made for future emission reduction work in a targeted manner to ensure that the “double carbon” goal is achieved as scheduled.
Optimizing the energy structure is still an important way to achieve the “double carbon” target domestically. Judging from the various policy guidelines introduced domestically since the first quarter, the country has actively promoted the green and low-carbon transformation of energy, and has refined and deployed a number of tasks and specific measures in terms of optimizing the layout of energy development to promote the accelerated development of new energy sources. Currently, the main focus is on popularizing and utilizing green and clean energy, starting with photovoltaics and wind power, to achieve a green power transformation.
Based on China's resource endowment of “more coal, less oil and gas,” thermal power assets will still play a solid role in the foreseeable future in the context of “carbon neutrality.” Regardless of transformation investment or peak adjustment costs, thermal power generally has a cost advantage. The cost of a kilowatt peak shaving capacity of a coal-fired power flexible transformation unit is lower than other system regulation methods such as pumped energy storage, gas power, and energy storage power plants. When coal power units are operated at low load, coal consumption increases and energy efficiency decreases, but considering that flexible transformation consumes wind, light, and nuclear power generation, it is possible to reduce coal consumption for integrated power supply and improve the overall energy efficiency of the system.
The China Securities Mainland Low Carbon Economy Theme Index (000977.CSI) consists of clean energy generation, energy conversion and storage, clean production, consumption and waste treatment companies, etc., to reflect the overall performance of securities of listed companies with a low carbon economy theme in the Shanghai and Shenzhen markets. The industry with the highest share of the index's constituent shares is utilities (accounting for about 92.21%), accounting for more than 90%. Looking at industry segments, it mainly includes new energy power generation operations (35.70%), thermal power generation operations (26.90%), and hydropower generation operations (25.51%). The top ten constituent stocks include Changjiang Electric Power, China Nuclear Power, China Power Investment Power, China Guangzhou Nuclear Power, Guodian Electric Power, Solar Energy, Huaneng International, etc. The weighted average ROE of the top ten constituent stocks is about 8.06%, and PB is also at a low level of 2.32. Wind unanimously expects the net profit growth rate to reach 27.95% in the next 2 years, which has both good profitability and growth potential.
The investment goal of the Huaxia Carbon-Neutral ETF is to closely track the China Securities and Mainland Low Carbon Economy Thematic Index, pursue minimization of tracking deviations and tracking errors, and provide convenient investment tools for investors to share the dividends of low-carbon economic development. The Huaxia Carbon-Neutral ETF was listed on 2021.8.6 with the trading code 159790.
Risk Reminder
1. Unexpected changes in industry fundamentals or policies;
2. Quantitative simulation estimation does not guarantee real income.
