Main points of investment
The photovoltaic industry ushered in a historic new opportunity: president Xi Jinping proposed at the Climate ambition Summit on December 12 that China's non-fossil energy share would reach 25% in 2030. In order to achieve this goal, we estimate that the cumulative reasonable installed scale of wind power and photovoltaic in China in 2030 should be within the range of 1800-2000GW. In 2019, the cumulative installed scale of photovoltaic in China reached 204GW, accounting for 10.2% of the installed scale of all power generation equipment.
Since 2009, the proportion of photovoltaic power generation in China has continued to increase. In 2019, new photovoltaic power generation accounted for 14% of the new electricity generation of the whole society. Photovoltaic power generation will become the main source of new electricity generation. At present, photovoltaic economy has been proved to be the type of power generation with the fastest decline in cost in the past 10 years. With the decline in the cost of photovoltaic modules and the gradual maturity of energy storage technology, the global photovoltaic has gradually got rid of subsidy dependence and entered the era of parity.
The China Securities Photovoltaic Industry Index (931151.CSI) takes the stocks of listed companies whose main business is related to the upper, middle and lower reaches of the photovoltaic industry chain as sample stocks, and selects no more than 50 most representative companies as sample stocks to reflect the overall performance of photovoltaic industry companies and provide new investment targets for investors.
The long-term and short-term returns are better than the mainstream wide-base index: the cumulative return since the base period of the index is 194.61%, the annualized rate of return is 15.12%, and the long-term rate of return is higher than that of CSI 300, CSI 500 and CSI index. Since the beginning of this year, the market has paid more attention to the new energy sector. The index return reached 74.92%, and the excess return compared with CSI 300, CSI 500 and CSI all exceeded 50%.
Abundant liquidity of the index: daily trading has been active since the launch, and the average daily turnover has improved significantly this year.
Valuation: as of November 23, 2020, the price-to-earnings ratio (TTM) of the index was 38.50, in the middle of the year to 66.51%.
Market capitalization distribution: the weighted average free circulation market value of index components is 53.408 billion yuan, including two leading companies with a free circulation market capitalization of more than 50 billion yuan, with a weight ratio of 29.70%.
Industry distribution: according to CITIC III industry classification, the industries with the largest proportion of weights in the index are solar energy, photovoltaic equipment, power transmission and transformation equipment, and the weight ratios are 61.82%, 8.64% and 6.35%, respectively.
Index components: selected photovoltaic industry leaders, covering global photovoltaic leaders (Longji shares, Tongwei shares), global inverter leaders (solar power), domestic household photovoltaic leaders (Zhengtai Electric), photovoltaic glass leaders (Follett), global photovoltaic film leaders (Foster) and other subdivided leading companies, the top ten heavyweights have made positive gains since the beginning of this year, of which 4 stocks have doubled their share prices since the beginning of this year. Overall, it has the characteristics of high profit and high growth.
Huatai Perry China Securities Photovoltaic Industry ETF (515790.OF) is a passive index fund under Huatai Perui Fund, tracking the CSI photovoltaic industry index, and the fund manager is Li Qian. The fund will be listed for trading on December 18, 2020.
Risk hint: this fund is a stock fund with a high level of expected risk and return; historical performance does not represent the future.
