The hottest investment of 400billion yuan boosted

400billion yuan investment boosts the safest water conservancy and hydropower in 2011

400billion yuan investment boosts the safest water conservancy and hydropower in 2011

China Construction machinery information

Guide: from the decision of the State Council to the Ministry of water resources, to the relevant 12th Five Year Plan of provinces and cities, and the No. 1 central document, there will be special content to emphasize increasing water conservancy investment, and the sources of funds will also be raised in various ways to ensure the smooth progress of Daxing water conservancy. Water conservancy and hydropower related listed companies are water conservancy leapfrog development

from the decision of the State Council to the relevant "12th Five Year Plan" of the Ministry of water resources, and then to the relevant "12th Five Year Plan" of provinces and cities, as well as the No. 1 central document, there will be special content to emphasize the increase of water conservancy investment, and the sources of funds will also be raised in various ways to ensure the smooth implementation of "vigorously promoting water conservancy". Listed companies related to water conservancy and hydropower are the first beneficiaries of the leapfrog development of water conservancy. Large scale water conservancy investment will be launched in 2011, and the growth of contracts signed by related listed companies will be realized, which will drive the growth of the company's performance into a high growth period. The "policy + performance" double drive will improve the valuation level of the water conservancy sector

the 12th Five Year Plan vigorously promotes the return of valuation

according to the statistics of the Securities Market Research Center, the hydropower and water conservancy index has performed strongly since the new year, with a cumulative increase of 4.98%, outperforming the Shanghai Stock Exchange Index by 5.58 percentage points, a weighted average turnover rate of 19.91%, and a total cumulative turnover of 14.897 billion yuan

the hydropower and water conservancy sector performed well in the third quarter of last year. In the first three quarters, the net profit attributable to the shareholders of the parent company was 161.1787996 million yuan, with earnings per share of 0.2883 yuan, net assets per share of 3.314 yuan, total operating income per share of 6.2356 yuan, net cash flow per share from operating activities of 0.0758 yuan, and return on net assets of 9.48%; Based on the closing price on January 14, the dynamic P/E ratio of hydropower and water conservancy block is 37.13 times, and the institution predicts that the P/E ratio of 2010 is 31.81 times, which is at a high level. However, with the increase of water conservancy investment in the 12th Five Year Plan, the overall valuation of the block is expected to return

specifically, there are 7 stocks in the sector, accounting for 58.33% of the total number of stocks in the sector. These stocks are: Qianjiang water conservancy, Qinglong pipe industry, Leo shares, Xinjiang Tianye, Guangdong hydropower, Zhefu shares, Guotong shares

among them, Qianjiang water conservancy is the company with the lowest dynamic P/E ratio. Based on the latest closing of 14.34 yuan, the dynamic P/E ratio is 32.01 times. The cumulative increase of the stock during the year is 4.215%, and the turnover rate is 36.80%. The company expects the net profit to increase by about 150% in 2010. Zhejiang Province, where the company is located, is an economically developed province in China, but water resources are scarce. It will be an inevitable trend to raise water prices and implement stepped water prices at the same time. The company is expected to directly benefit from the reform of water price formation mechanism. The third quarterly report of 2010 disclosed that among the top ten non tradable shareholders, Huaxia department's four funds added a total of 13.8679 million shares, of which Huaxia strategy added 1.8 million shares; The number of shareholders decreased by 14.11% compared with the previous period, and chips were concentrated

Qinglong pipe industry is the second most promising stock in the sector with dynamic P/E ratio. Based on the latest closing of 38.7 yuan, the dynamic P/E ratio is 41.07 times. The cumulative increase of this stock during the year is -8.05%, and the turnover rate is 37.34%. The company expects the net profit to increase by 0 to 30% in 2010. The company is one of the pipeline manufacturing enterprises with the most complete product varieties and specifications in China's pipe industry, and also the largest water supply and drainage pipeline manufacturing enterprise in Shaanxi, Gansu, Ningxia, Qinghai and Inner Mongolia. Northwest China is one of the regions with the most serious water shortage in China. There are many water conservancy projects and a large demand for pipes. Compared with other regions, the pipeline demand in this region is huge. The third quarterly report last year showed that among the top ten circulating shareholders, all were new institutional investors

entering the era of high investment

the central rural work conference focused on accelerating the reform and development of water conservancy, and comprehensively deployed the agricultural and rural work in 2011. It proposed that the overall requirements of the agricultural and rural work in 2011 are: vigorously promote water conservancy, strengthen the foundation, pay close attention to production and ensure supply, vigorously promote income and benefit the people's livelihood, and focus on overall planning and vitality. At the beginning of the "Eleventh Five Year Plan", China's water conservancy investment began to receive key national support again, and the amount of investment was much higher than the previous level. The key is the sharp decline in the mixed toughness of the two. It is shown that the investment in water conservancy in 2009 was 216 billion yuan, and the investment in the first 10 months of 2010 was 188 billion yuan, which is expected to exceed the level of 2009 throughout the year. At the same time, water conservancy construction has also become a key area of China's western development. The state plans to start 23 new key projects in the western development in 2010, with a total investment of 682.2 billion yuan, of which water conservancy projects account for nearly a quarter

in 2011, water conservancy and hydropower officially entered the high investment era of the 12th Five Year Plan

on January 11, 2011, Minister of Water Resources Chen Lei said at the plenary meeting of the science and Technology Committee of the Ministry of water resources that the No. 1 central document "decision on accelerating the reform and development of water conservancy" will be released soon. This is the first time since the founding of new China that the Central Committee has issued a comprehensive document on water conservancy. The "12th Five Year Plan" is a critical period for strengthening the construction of key weak links in water conservancy and accelerating the development of water conservancy for people's livelihood. It is also a critical period for deepening water conservancy reform and strengthening water management, It is also an important period to promote the transformation from traditional water conservancy to modern water conservancy and sustainable development water conservancy. The investment in water conservancy during the Eleventh Five Year Plan period is 1.93 times that during the Tenth Five Year Plan period, and it is estimated that the investment in water conservancy during the Twelfth Five Year Plan period is more than twice that during the Eleventh Five Year Plan period. The water conservancy target of the 12th Five Year Plan is that the average annual direct economic loss of flood disasters in the country will reduce to less than 0.7% of GDP in the same period, so the amount of water conservancy investment should be at least as high as p0.7% of GDP as the main supplier in the field of glass fiber

according to the calculation of Guosen Securities, in the next ten years, the investment in fixed assets of water conservancy is expected to reach 4trillion, with an average annual investment scale of about 400 billion. The key areas of investment will mainly be 13 major grain producing areas. According to our calculation, the average annual investment in fixed assets of water conservancy in 13 major grain producing areas is 290billion, accounting for 74.5% of the national investment scale. The investment in fixed assets of hydropower exceeds 9b, and the diameter of disc sample is 100billion, of which the investment in civil engineering exceeds 315billion. According to conservative estimates, hydropower will add more than 100million kW of installed capacity in the next decade, with a total investment of more than 900billion yuan, including civil engineering investment of more than 315billion yuan, with an average annual investment of more than 45billion yuan, mainly in the cascade development of large hydropower stations

three types of companies will benefit from the rapid growth of water conservancy investment, which will benefit relevant water conservancy engineering construction enterprises. The first entrepreneurial proposal focuses on Gezhouba, Guangdong hydropower and Anhui water conservancy

from the perspective of industrial chain, Guosen Securities believes that three types of companies will benefit from the great development of water conservancy and hydropower in the future. The first to benefit are water conservancy engineering contracting companies and local building materials production enterprises, mainly Gezhouba, Anhui water conservancy, Guangdong hydropower, Jiangxi cement, conch cement, Jidong Cement, etc. The second is equipment manufacturing businesses such as water conservancy pipes and hydropower motors, as well as water-saving equipment manufacturers. The former mainly includes Guotong shares, Qinglong pipe industry, Zhefu shares, etc., while the latter includes Leo shares, Dayu water saving, etc. Finally, there are hydropower operators, including five major power groups, Qianjiang water conservancy, Three Gorges water conservancy, Sichuan investment energy, etc

from the perspective of investment characteristics of segmented industries, Guosen Securities said that 3. According to the industry and functional characteristics, it can be divided into water conservancy investment. Future projects may be characterized by large overall scale, large number of projects and small amount of individual projects, which can be seen from the individual scale of water conservancy projects in 2009. The individual investment scale of water conservancy projects under construction in 2009 was smaller than that in 2008, which was reduced by 18%. Therefore, although the future water conservancy investment is large, However, the market is relatively scattered, and the construction subject is mainly local water conservancy construction leading companies, benefiting mostly small and medium-sized enterprises