Xiya Electric Equipment Co., Ltd.

Electric power industry is the basic industry of national economy, and its performance mainly depends on the growth of power generation. Driven by macro-economic growth, China's electricity consumption generally increased in the first three quarters of this year. According to the statistics of State Electric Power Corporation, the national power generation from January to September reached 1175.88 billion kwh, a year-on-year increase of 10.61%, significantly exceeding the growth of GDP. Although the performance of listed power companies fluctuated due to the impact of power system reform in the third quarter, and the electricity prices of many thermal power companies were lowered, and the coal price was higher than that of the same period last year, which greatly increased the power generation cost. Thermal power companies in economically developed areas still achieved good performance, and the power sector continued to maintain its blue chip image of excellent performance. From January to September, the weighted average earnings per share of 42 listed companies in the industry reached 0.289 yuan, more than double the average level of Listed Companies in China.

The analysis shows that there are obvious polarization in the performance of listed electric power companies this year: on the one hand, large-scale listed companies such as Huaneng International, Guodian power and Shenzhen energy have increased significantly. As of the third quarter, Shennan power a has fulfilled the annual power production plan ahead of schedule and exceeded the plan by 8.96%. On the other hand, Suibao thermal power, Xianglong power, Leshan Electric Power and other companies are operating at a loss, and the operating conditions of small-scale local power enterprises are beginning to cause concern.

The Three Gorges power plant is about to store water for power generation and the construction of a number of large water facilities in recent years will have a great impact on the profit pattern of the power industry. According to the relevant personnel of the Yangtze River Electric Power Co., Ltd., the state's industrial and technological policy during the 10th Five Year Plan period is to vigorously develop clean energy, that is, to make full use of the existing power generation capacity, develop hydropower and thermal power of large units in pithead, compress small thermal power and moderately develop nuclear power. The development of water and nuclear power will occupy a certain space of thermal power market.

This personage also pointed out that bidding on the Internet is conducive to the development of advantageous enterprises and makes the industry competition more reasonable. At the same time, China's per capita installed capacity and power generation per capita are less than half of the world average level, only 1 / 6-1 / 10 of that of developed countries, and the proportion of electric energy consumption in terminal energy consumption is about 11%, which is lower than the world average level of 17%. Competition will reduce the price of electricity to a more reasonable level, which will also stimulate electricity consumption and change the situation of low-level power consumption in China.

For the next year's industry prospects, industry insiders generally hold optimistic expectations. With the sustained and rapid development of China's national economy, the growth of power demand is beyond doubt. According to the research forecast of Guotai Junan Securities Research Institute, the domestic power generation and consumption will increase by more than 7% in 2003.

As for the trend of industry benefits, many listed companies said that from the direction of power system reform, with the gradual implementation of the No. 701 document of the State Planning Commission on regulating electricity prices, the overall electricity price level will surely be adjusted downward, and the profit level of the whole power industry will be compressed. In fact, bidding means that all kinds of protection for some power plants will disappear. Undoubtedly, the large-scale power generation enterprises with large assets and high unit quality have competitive advantages. Among the listed companies, such as Huaneng International, Guodian power, Shenneng shares, Guangdong electric power, etc. Through bidding, the utilization hours of power generation equipment of large units of such companies will increase, and the advantage of low cost will be gradually reflected, so as to offset the adverse impact of price reduction.

At the same time, with the establishment of the five major power generation groups, the pattern of oligopoly competition in the power generation market of China's power industry has become an inevitable feature. It is generally believed that in the next two to three years, the wave of large-scale merger and reorganization in the power industry caused by competition is inevitable, especially in the listed companies.