Investors are concerned about possible investment opportunities in the energy-efficient motor industry

The release of a research report on the day prompted investors to focus on possible investment opportunities in the energy-efficient motor industry.

In March this year, the Ministry of Finance and the National Development and Reform Commission held a meeting in Hunan to mobilize the deployment of high-efficiency motors. The meeting confirmed that the promotion task for high-efficiency motors nationwide in 2011 was 31.77 million kilowatts, accounting for approximately 30% of the total domestic motor sales. Among them, 20 million kilowatts of low-voltage high-efficiency motors, 10 million kilowatts of high-voltage high-efficiency motors, and 1.77 million kilowatts of rare earth permanent-magnet motors. Changjiang Securities pointed out that with the government's emphasis on high-efficiency motor promotion, industry investment opportunities are also emerging.

According to the National Development and Reform Commission’s plans for the power industry, China will vigorously develop renewable energy such as hydropower, wind power, and nuclear power in the future, and new demand for related auxiliary generators will increase further.

At present, China's electric motors use more than 2 trillion kilowatt-hours of electricity annually, accounting for about 60% of the country's electricity consumption and 80% of industrial electricity consumption. Energy-efficient motors consume 20%-30% less energy than ordinary motors, and China's high-efficiency motors account for only 10% of the current market. The promotion of highly efficient and energy-saving motors and the promotion of energy-saving and emission-reduction are of great significance to the completion of the energy consumption reduction target per unit of GDP during the “12th Five-Year Plan” period and the protection of national energy security.

Changjiang Securities pointed out that rare earth permanent magnet motors have opened up new directions for the development of the motor industry. The rare earth permanent magnet motor is a new type of high-efficiency and energy-saving product. The magnetic field achieved by the high-performance permanent magnet material can reach a magnetic field strength far exceeding the magnetic field strength that the current excitation can achieve, and thus can produce thousands of KW of large and medium-sized Motor.

The current average efficiency of electric motors in China is 5% lower than that of standard electric motors in developed countries, and the average efficiency is 10% to 20% lower than in developed countries. In the working life cycle of many electric motors, the actual cost of energy consumption is much higher than the cost of motor procurement. Taking a 1000-kilowatt high-voltage motor as an example, the domestic selling price is generally around 200,000 yuan. Calculated at a full-year load of 8,000 hours, the power consumption is 8 million kilowatt-hours, and the industrial electricity consumption is 1 yuan per kilowatt-hour, only one year. The electricity bill is as high as 8 million yuan. Assuming a motor life of 30 years, the consumption of electricity will be as high as 240 million yuan, and the purchase cost is only one thousandth of the total cost of its life cycle. The cost of high-efficiency motors is 15% to 30% higher than that of ordinary Y-series motors. According to the current subsidy of 26 yuan per kilowatt, the subsidy accounts for 13% of the purchase cost of ordinary motors, basically covering half the cost of purchasing high-efficiency motors. In addition, less than 30% of electrical energy can be lost every year. Under normal usage time, you can recover more than one year's purchase costs.

In June 2011, Sumitomo Electric, a well-known Japanese motor manufacturer, had already discussed with local companies in Dalian to discuss investment and establishment of factories. Changjiang Securities believes that the introduction of new foreign technologies will further increase the production efficiency of China's highly efficient and energy-saving motors and promote its faster occupation of the market. It is expected that high-efficiency motors will account for over 60% of new small and medium-sized motors in the next two years, and the high-efficiency motor market will reach 48-56 billion yuan within two years, which means that the annual growth rate will exceed 400%. The consensus on energy saving and emission reduction and the acceleration of government promotion have destined that energy-saving motors will fully replace traditional inefficient motors in the future, and the corresponding theme investment opportunities in the A-share market have emerged.