2022 China New Energy and Machinery Investment Strategy
1) Wind & Power installations to enter a high growth stage after 1Q22 (Ningbo Orient Wires, Luoyang Xinqianglian).
2) PV installations to see strong demand this year. Alpha opportunity re. granular silicon (GCL-Poly); industry beta opportunity of PV EVA film is also clear (Hangzhou First Applied Material).
3) EV Supply Chain: Upstream lithium sector will be the only area that can justify the high valuation due to unbalanced demand/supply dynamics (Keda Industrial).
4) Two-Wheel EVs: New safety standards will see leading companies further increase market share (Yadea).
Edition: 128
- 04 February, 2022
Ningbo Orient Wires & Cables (603606 CH)
Industrials
Offshore wind power is taking off in China’s south coastal region opening up a market space of hundreds of billions of Yuan for Orient Cables. As offshore wind power develops from the intertidal zone to the further offshore zone, the increasing installation distance will drive demand for subsea cables. Product upgrades are expected to boost gross margins. Horizon Insights also highlights the relatively stable competitive landscape (high barriers to entry) and new opportunities for the group's export business.
Edition: 125
- 10 December, 2021