As of February 7th, a total of 15 A-share wind and solar photovoltaic power generation listed companies have released their 2022 performance forecasts. Among them, 8 companies are expected to see a year-on-year increase in performance, 2 companies are expected to turn losses into profits, 1 company is expected to see a year-on-year decrease, and 4 companies are expected to experience losses. Among the four listed companies that suffered losses in advance, three had a significant year-on-year decrease in performance. Several listed companies with expected performance increases mentioned in the reasons for performance changes, mainly due to an increase in the installed capacity of new energy.
Driven by policies, industries, and other factors, since 2023, energy enterprises have been vigorously expanding their layout in the field of new energy. Industry insiders predict that the compound annual growth rate of new installed capacity of wind and solar photovoltaics in China will reach 31% -37% from 2022 to 2025.
1. 90% performance improvement
According to data from 15 listed wind and solar photovoltaic companies that have released performance forecasts, 13 of them have shown improvement in performance, accounting for nearly 90%.
Nine listed solar photovoltaic power generation companies have released performance forecasts. Among them, four companies, including Xinneng Technology, Jinkai New Energy, Solar Photovoltaics, and Zhejiang New Energy, saw a year-on-year increase in performance. Jiawei New Energy is expected to turn losses into profits, while Luxiao Technology and others are expected to experience losses.
Xinneng Technology expects a net profit of 170 million to 190 million yuan in 2022, a year-on-year increase of 54.53% -72.71%; Jinkai New Energy is expected to have a net profit of 600 million to 72 million yuan, a year-on-year (adjusted) increase of 24.86% -49.83%; The expected net profit of solar photovoltaic is 1.325 billion yuan to 1.425 billion yuan, a year-on-year increase of 12.21% -20.68%; Zhejiang Xinneng is expected to have a net profit of 700 million to 850 million yuan, a year-on-year increase of 5.13% -27.65%.
For the reason for the expected increase in performance, Xinergy Technology stated that the main reason is the significant increase in revenue and gross profit of the solar photovoltaic power generation business. With the continuous expansion of self owned power stations, the company’s solar photovoltaic power generation has steadily increased. Zhejiang Xinneng also mentioned in its performance changes that the main reasons are the company’s new wind power projects and solar photovoltaic projects being put into operation for power generation. In 2022, the solar photovoltaic power generation capacity of Zhejiang New Energy’s direct and controlling power generation enterprises reached 2.674 billion kilowatt hours, a year-on-year increase of 15.62%; Wind power generated 2.831 billion kilowatt hours of electricity, a year-on-year increase of 275.40%.
From the perspective of wind power enterprises, Chuanneng Power is expected to have a net profit of 600 million to 730 million yuan in 2022, a year-on-year increase of 72.55% to 109.94%; Yinxing Energy is expected to have a net profit of RMB 145 million to RMB 165 million, a year-on-year increase of 54.92% to 7629%; Jiangsu Xinneng is expected to have a net profit of 47.1 billion yuan, a year-on-year (adjusted) increase of 53%; The expected net profit of energy-saving wind power is 1.42 billion yuan to 1.7 billion yuan, a year-on-year (adjusted) increase of 21.24% -45.14%; Guangyu Development expects a net profit of 602 million to 664 million yuan, turning losses into profits year-on-year.
Since its establishment, Energy saving Wind Power has been focusing on the development, construction, and operation of wind power projects. The company has successively won the bid and demonstrated the construction of the first national million kilowatt wind power base start-up project – the Hebei Zhangbei Single Crystal River 200MW Franchise Project; Winning the bid and demonstrating the construction of the country’s first 10 million kilowatt wind power base start-up project – the Gansu Changma 200MW franchise project. For the reasons for performance changes, the company stated that the main reason is the increase in grid power brought about by new production projects and the revenue growth brought about by the increase in electricity sales prices of the Australian subsidiary.
2. Increase construction efforts in multiple regions
Under the “dual carbon” goal, there is still great potential for the new energy industry represented by solar photovoltaic and wind power in 2023.
Zhang Jianhua, Director of the National Energy Administration, said that in 2023, we should make every effort to improve the energy supply guarantee ability, enhance the security and stability of the energy supply chain, take the “double carbon” goal as the guide, vigorously increase the proportion of non fossil energy, and continue to expand the supply of clean and low-carbon energy.
Many regions have planned wind and photovoltaic projects as key projects in 2023. The Guizhou Provincial Development and Reform Commission has released a list of projects starting construction in the first quarter of 2023, including 18 solar photovoltaic projects including the Liupanshui High tech Zone solar photovoltaic power generation project, Guanling County Guangzhao Hydropower Station Gangwu Agricultural Solar Photovoltaic Power Station project, Puding County Huachu Town Shuichao Agricultural Solar Photovoltaic Power Station project, as well as the Zhouqin Wind Farm project in Sandu County and the Jigongshan Wind Farm construction project in Tongzi County 13 wind power projects, including the construction of the Sazhi Wind Farm in Liuzhi Special Zone.
On January 29th, the Sichuan Provincial Development and Reform Commission announced the list of key projects in Sichuan Province for 2023, with a total of 700 projects listed. Among them, there are 464 ongoing projects and 236 new construction projects. Among the ongoing projects, there are four new energy projects, including the first phase of the Lianghekou Hydroelectric Power Station Water Light Complementary Photovoltaic Power Station Water Light Animal Husbandry Complementary Photovoltaic Power Station and the Liangshan Prefecture Wind Power Continuation Project; Among the newly started projects, there are five new energy projects, including the Liangshan Prefecture Photovoltaic New Start Project, the Renhe District Concentrated Solar Photovoltaic Power Generation Project in Panzhihua City, and the Hanyuan 400000 kW Solar Photovoltaic Power Station, which is a water wind complementary project of the Pubugou Hydropower Station.
Shaanxi Province has clearly stated that in 2023, it will add 10 million kilowatts of new energy installed capacity, with a total scale of 40 million kilowatts.
The National Energy Administration stated that wind and photovoltaic construction will continue to increase in 2023. In 2023, the installed capacity of wind power will reach around 430 million kilowatts, and the installed capacity of solar photovoltaic power generation will reach around 490 million kilowatts. The cumulative installed capacity of the two will reach about 920 million kilowatts, of which the new installed capacity will reach 160 million kilowatts, a year-on-year increase of over 33%.
3. Enterprises actively layout
Driven by policies, industries, and other factors, since 2023, energy enterprises have been vigorously expanding their layout in the field of new energy.
On the evening of January 15th, Shanghai Electric Power announced that the company has been awarded the competitive configuration project construction quota for the 200000 kilowatt wind power project in Xinghua, Dangchang County, Longnan City.
Changyuan Power plans to invest in two solar photovoltaic power generation projects, with a total static investment of 906 million yuan. On the evening of January 11th, Changyuan Power announced that the company plans to increase its wholly-owned subsidiary Jingzhou New Energy’s capital by 59.96 million yuan in cash, and use it as the main investment to construct the 100MW Fishery and Solar Complementary Photovoltaic Power Generation Project in Jinan Town, Jingzhou City, Changyuan, China; Increase the capital fund of the wholly-owned subsidiary Qujialing New Energy by 14.05 million yuan in cash, and take it as the main body to invest in the construction of Guoneng Changyuan Jingmen Qujialing Arhat Temple 70MW agricultural photovoltaic complementary power generation project.
Guangdong Hydropower involves clean energy power generation businesses in hydropower, wind power, and photovoltaic power generation. It is making every effort to expand the clean energy market, seize base projects in Xinjiang, Qinghai, Inner Mongolia, and Shaanxi, and strive to acquire resources in the Southeast and Central South regions. On the evening of January 17th, the company announced that its wholly-owned subsidiary Xinjiang Guangdong Hydropower and Lixin Energy had signed a New Energy Project Framework Agreement with the People’s Government of Manas County, Changji Prefecture, Xinjiang Uygur Autonomous Region. Xinjiang Guangdong Hydropower and Lixin Energy plan to invest in the construction of a 1 million kilowatt market-oriented new energy project in Manas County, and be responsible for the development, construction, and operation of the project. The total planned investment is 6.5 billion yuan.
In order to continuously expand the installed capacity of solar photovoltaic power stations and maintain a leading position in the industry, solar photovoltaic continues to strengthen the development of photovoltaic power station projects. On the evening of January 13th, the company announced that its wholly-owned subsidiary, China Energy Conservation Solar Technology Co., Ltd., plans to jointly invest RMB 53 million (or equivalent foreign currency) with China Energy Conservation Solar Hong Kong Co., Ltd. to establish a subsidiary in Yangzhou and carry out the preliminary work of developing a solar photovoltaic power station project.
Guoxin Securities believes that the compound annual growth rate of newly installed wind and photovoltaic power in China will reach 31% -37% from 2022 to 2025.