CEC is expected rapid decline in 13 years of thermal grid tie inverter capacity was added PV support policies in sight

State Grid issued "opinion", well distributed  grid tie inverter  service work early on distributed photovoltaic grid tie inverter commitment extends to distributed wind power, natural gas and other fields, and two sessions continue to emphasize the the "spontaneous personal use, with the remainder Internet"; before and after the country is expected to introduce distributed subsidy rules and related policies to stimulate the photovoltaic sector rose, we continue to recommend directly benefit from the distributed needs to start leading inverter - power sun;

Electrical equipment: CEC released a 13-year power inverter  and demand forecasts, a sharp decrease in the thermal power inverter capacity was added. The report pointed out that 13 years of total electricity consumption growth is expected to rebound to 7.5%, the newly installed capacity will reach 87 million kilowatts.

It is worth noting that the 13-year forecast of only 40 million kilowatts of installed capacity was added in the thermal power inverter, a record low.

Approved by the thermal power plummeted and the recovery of the growth rate of electricity consumption, or will cause the hours quickly rebounded to 5300 Coorong mark within the next two years.

New Energy:

(1) Distributed and net work smoothly promote photovoltaic supportive policies are expected to stimulate the sector rose.

(2) a significant rise in the price of polysilicon, is expected to continue until the introduction of double reverse results. PVinsight polysilicon a material prices rose 4% this week, we maintain the pre-judgment that the the polysilicon price gains will continue to the double reverse policies issued, inverter with charger or constrained by the upstream and downstream enterprises will not exceed 25 U.S. dollars / kg.

Company News

Electrical equipment: Terios Germany released results of Letters 12 all year vesting net profit of 87.5 million yuan,inverter with charger a year-on-year decline of 17%. 11 years of railway construction by stagnation and the impact of the coal market downturn, the company's 12-year decline in performance in line with expectations. But in 12 years, rail and rail delivery market recovery driven company orders rebounded. In addition, the company also actively explore the grid tie inverter, net orders exceeded 60% of total new orders proportion. We expect the company 13 years EPS of $ 0.75, corresponding PE17 times, to maintain a "recommended" rating.

New Energy: Jing Sheng Electrical published 12 annual results and realize an annual sales income of 503 million yuan, down 38.98%; vest net profit of 176 million yuan, down 46.07%; basic earnings per share of 1.44 yuan. Counterparts compared relatively well in hand the number of orders and the implementation of the company, making its revenues and profits in 2012 are still supporting demand for new equipment; photovoltaic industry adjustment is not over yet, is not optimistic, the company's 2013 operating results will continue to be under pressure , to maintain "prudent recommended" rating.