In March 2024, the manufacturing purchasing managers' index (PMI) was 50.8%, up 1.7 percentage points from the previous month, and has returned above the boom and bust line since September last year.
Domestic industrial activity gradually returned to normal after the Spring Festival, and the supply of industrial products was effectively improved.
The growth rate of China's installed power generation capacity has increased, and the proportion of installed capacity of wind power and solar power generation has increased.
From January to February 2024, the country's total installed power generation capacity was 2,972 billion kilowatts, an increase of 14.7% over the previous year, and maintained a double-digit growth rate for 10 consecutive months.
Zhongyuan Securities released a research report saying that domestic resumption of work and production accelerated after the holiday season, industrial activity gradually returned to normal, and the purchasing managers' index returned above the boom and bust line in March; the growth rate of installed domestic power generation capacity increased, and the installed capacity growth rate of solar energy equipment increased significantly; investment in power engineering and power grid engineering continued to grow, driving demand for electrical equipment; sector valuation rose slightly, and the overall level was still low.
The domestic industry continued to recover after the holiday season, and export demand was still there. Driven by domestic and external demand, the valuation of the electrical equipment industry may be further repaired.
Zhongyuan Securities recommended focusing on leading companies in the electrical equipment sector.
Electrical equipment related companies:
Dongfang Electric (01072), Shanghai Electric (02727), Harbin Electric (01133)