The Zhitong Finance App learned that Galaxy Securities released a research report stating that the “Report on the Work of the State Council Government 2024" proposed a 2.5% reduction in energy consumption per unit of GDP in 2024. “Strengthen the construction of ecological civilization and promote green and low-carbon development.” It is still one of the top ten key tasks of the government in 2024. The current government work report once again clarifies the goals of speeding up the construction of a new energy system and vigorously developing a green and low-carbon economy. Apart from the energy saving and low-carbon environmental protection industry, we continue to be optimistic about the electricity sector. Short-term recommendations include a thermal power sector with policy catalyst, continuous improvement in performance, and room for improvement in valuation; nuclear power and hydropower have high performance certainty, strong dividend capacity, and long-term allocation value. Although new energy sources have uncertain factors such as electricity prices in the short term, there is broad room for long-term growth, and can be strategically allocated at low prices.
On the individual stock side: It is recommended to focus on Wanneng Electric Power (000543.SZ), Zhejiang Power (600023.SH), Huadian International (600027.SH), Guodian Electric Power (600795.SH), Huaneng International (), Changjiang Electric Power (USD), Sichuan Investment Energy (Sichuan), etc. 600011.SH 600900.SH 600674.SH
Galaxy Securities's views are as follows:
Key tasks in the field of green and low carbon:
The “Report” clearly implements the concept that green water and green mountains are golden mountains and silver mountains from the three aspects of promoting comprehensive ecological environment management, vigorously developing a green and low-carbon economy, and actively and steadily promoting carbon neutrality, and collaboratively promoting carbon reduction, pollution reduction, greening, and growth, and building a beautiful China where people and nature coexist harmoniously. Promote comprehensive ecological management: thoroughly implement the action plan for continuous air quality improvement, strengthen the control of solid waste, new pollutants, and plastic pollution; organize the three iconic battles of the “Three North” project; vigorously develop a green and low-carbon economy: accelerate energy saving and water-saving transformation in key areas, promote the development of waste recycling industries, build beautiful pioneering regions in China, etc.; actively and steadily promote carbon neutrality: Firmly carry out the “Ten Major Actions for Carbon Dafeng” to expand the coverage of the national carbon market industry and accelerate the construction of new energy systems.
The green and low-carbon industry is an important field of new quality productivity:
“Vigorously promoting the construction of a modern industrial system and accelerating the development of new quality productivity” is the top priority of economic development. The bank believes that a “green, low-carbon circular economy” is the undertone of new quality productivity. It must firmly establish and implement the concept “green water and green mountains are golden mountains and silver mountains”, unswervingly follow the path of ecological priority and green development, accelerate the green transformation of various industries, and help achieve the “double carbon” goal. With the development of new quality productivity, green and low-carbon technologies and products are expected to usher in broad development space in various fields such as energy, manufacturing, and service.
Accelerate the construction of new energy systems, and the power industry has broad development space:
By the end of 2023, China's installed renewable energy generation capacity reached 1,516 billion kilowatts, accounting for 51.9% of the country's total installed capacity. The “Report” clearly furthers the energy revolution, accelerates the construction of a new energy system, strengthens the construction of large-scale scenic bases, promotes the development and utilization of distributed energy, and promotes the use of green electricity and international mutual recognition, all of which will lay the foundation for the long-term growth of new energy sources. In the process of transition from new energy to the main power source for power generation, the responsibility of thermal power to ensure energy safety and stability will gradually be strengthened, thus opening up new growth space for thermal power.
Risk warning: the risk that the installed capacity falls short of expectations; the risk that coal prices will continue to be high; the risk of falling feed-in tariffs; the risk of increased competition in the industry, etc.