Power equipment and industrial control:

　　With the acceleration of ubiquitous power Internet of things, investment upsurge has come. On March 8, the State Grid Corporation held a meeting to make a comprehensive arrangement for the construction of ubiquitous power Internet of things, and accelerate the implementation of the strategy of "three types, two networks and world-class". The plan is divided into two stages, and the ubiquitous power Internet of things will be fully built by 2024. Based on the existing business of power grid, the ubiquitous Internet of things will improve from four aspects: holographic perception, ubiquitous connection, open sharing, integration and innovation, and support the development strategic goal of "three types, two networks, world-class". The three types of enterprises are expected to benefit from the investment tide of ubiquitous power Internet of things. From the perspective of the pace and volume of benefits, we believe that the first to benefit is the State Grid ICT industry unit with the comprehensive strength of the overall solution of ubiquitous power Internet of things; the second is the power secondary equipment enterprises and related software enterprises that have been deeply engaged in the field of power informatization for many years; and the third is the sensor monitoring and related application enterprises.

　　Focus on Guodian Nari (secondary equipment leader + group ICT related business injection in 17 years); It is suggested to pay attention to Minjiang hydropower (State Grid telecom business to be injected), Jinzhi Technology (secondary equipment + power informatization), Xinlian Electronics (power information collection + 230m networking + smart energy cloud platform), Juhua Technology (energy side information collection), Longxin Technology (power and gas marketing and acquisition system), Henghua Technology (power industry oriented cloud service platform), high beam software (State Grid e-commerce platform to be injected) Injection, etc.

　　New energy vehicles:

　　The installed capacity of power batteries continued to grow rapidly. According to GGII data, in February 2019, the output of new energy vehicles in China was about 53000, a year-on-year increase of 43%, of which the sales volume of new energy passenger vehicles reached 50800, a year-on-year increase of 74.4%. The installed capacity of power battery was 2.24gwh, up 118% year on year and down 55% month on month. The installed capacity of catl was 1.022gwh, accounting for about 45.6%; that of BYD was 0.584gwh, accounting for about 26.1%; that of GuoXuan hi tech was 0.127gwh, accounting for about 5.7%. From the perspective of chemical system, ternary accounts for 82%, which is still the main market force. Lithium iron phosphate accounts for nearly 15%, and lithium titanate accounts for about 3%. From the battery shape, square accounted for nearly 80%, soft bag accounted for nearly 11%, cylinder accounted for nearly 9%.

　　Investment suggestions:

　　Under the expected decline of subsidies, the links with less pressure on price reduction and the enterprises with high growth in the first quarter. 1) It is recommended to focus on Ningde times, which is a leading cell leader with high-quality production capacity and strong bargaining power and participates in global competition. It is recommended to pay attention to GuoXuan hi tech, Yiwei lithium energy and xinwanda; 2) The material manufacturers who supply overseas can get a certain price premium to offset the pressure of domestic price reduction. The key recommendations are: dangsheng technology, xinzhoubang, putailai, Shanshan, Enjie, Xingyuan material, Sanhua intelligent control, etc.

　　New energy power generation:

　　The recovery will continue. Rush to install is expected to accelerate: according to the current benchmark price adjustment mode of wind power, if the approved projects before 2018 are not started before the end of 2019, the new benchmark price policy will be implemented, that is to say, the domestic benchmark price of wind power will officially enter the adjustment cycle in 2019, and rush to install is expected to accelerate. In addition, the State Forestry and grassland Administration recently deleted some unreasonable provisions, such as forest land that was not allowed to occupy areas with slopes above 25 degrees, which is expected to accelerate the recovery of the southern region.

　　The bidding price has stabilized and rebounded, the cost of raw materials has declined, and the profits of enterprises have ushered in an inflection point: since September 18, the bidding price of 2.0/2.5/3.0mw models has continued to rise on a month on month basis. With the slowdown of industry competition, the bidding price is expected to further recover. In addition, since the fourth quarter of 2008, the prices of main raw materials and steel products have declined significantly, and the profitability of fan and parts enterprises is expected to improve significantly.

　　Investment suggestions:

　　At present, the recovery of wind power is very obvious. At the same time, with the approaching of subsidy retreat node, the rush to install will be ushered in in 2019. It is recommended to focus on wind turbine leader Jinfeng technology and wind tower leader Tianshun wind energy. At the same time, it is recommended to focus on Sinoma technology, Taisheng wind energy, Tianneng heavy industry, Hengrun Co., Ltd., Jinlei wind power, Riyue Co., Ltd., Zhenjiang Co., Ltd.

　　Risk tips:

　　The pace or strength of industry related policies is lower than expected; the production and sales of new energy vehicles and wind power photovoltaic are lower than expected; the power grid reform is insufficient or slow.

　　(source: Anxin securities)