PowerEquipmentIndustryReportcontentsummaryofevents:thepowerequipmentindustrywedoasortofthreequarterlysituation,excludingTianweichange(2.2207millionyuannetprofitinthethirdquarteroflastyear,thethirdquarternetprofitof-3.68billion),thethird-quarternetprofitattributabletoparentcompanyindustry-widegrowthrateof21.80percentyearonyear,28.46percentcomparedtothesecondquarter,aslightdeclineinthegrowthrate.Becauseofthenewenergy(photovoltaic,wind,etc.)aremorenegativegrowthindustrythisyear,werejectthenewenergycompany,Tianweichange,themeasuredelectricalequipmentcompany'sthird-quarternetprofitattributabletoparentcompany29.09%yearonyeargrowth,lowerthanthesecond36.71%quarterlyreviews:1.withelectricitycompaniesgenerallyfastergrowthofnetprofitinthethirdquarterwescreenedattributabletotheparentcompanygrewmorethan40percentofthecompany,atotalof30,mainlyindistribution,electricityindustry,andanotherpartofthetransmissionequipmentcompanyclassonce.Webelievethatthemainreasonsare:1)distribution,electricityindustryinvestment,rapidgrowth;2)aftertheprovincialnetworkunifiedbidding,marketconcentrationincreased,theadvantagesoftheenterprisemarketshareincreasedrapidly;3)thegridoncethebiddingrulechangeequipmentindustrygrossmargin.2.Themajorityofsecondaryequipmentcompanyperformancesteadygrowthwehavesixstatisticsattributabletotheparentcompany'sthird-quarternetprofitrosebetween20%-40%,about23companiesinthethirdquarterattributabletoequityholdersnetprofitinthe0%-20%,intheelectricitydistributioncompanies,powerdistribution,publicutilities,energyandotherindustries,thereisnospecificity.3.frequencyenergy,newenergyindustryperformancemostlydeclinedaddition,thereare57companiesinthethirdquarternetprofitattributabletoequityholdersfelltofrequencyenergy,windpower,solarandothernewenergyindustrycompaniesmajority.Webelievethattheindustrialboomoftheindustryisamajorfactorinthelowerdriveindustryprofitsdecline,whilewindpower,solarenergyprofitdeclinemainlycausedbytheintensecompetitionintheindustry.4.Biddingrulesadjustedfourth-quarterprofitgrowthoncethedevicegenerallyimproveourlistedcompaniesreported2012accordingtotheannualgrowthrateofnetprofitattributabletoparentcompanynotice,measureoutthefourthquarterof2012,agrowthratehigherprofitfacilities,twominorprofitgrowthandstability.Thereareforecastingnetprofitgrowthoftheupper21inthethirdquarterattributabletotheparentcompanyofmorethan100%growthinnetprofitforecast21limitattributabletotheparentcompany'sthird-quarterbetween50-100%,13companiesinthethirdquarternetprofitattributabletoparentanupperlimitoftherangeof0-50%growthforecast,forecastnetprofitgrowthoftheupperfourattributabletotheparentcompany'sthirdquarterisnegative.Wefoundthatfourth-quarterprofitimprovementoncethedeviceismuchhigherthantheamplitudeofthesecondaryequipmenttoenhanceprofitmargin,webelievethatthemainreasonforthat:adeviceovercapacity,fiercepricewarmakesthelowestbid,in2011corporateprofitswasquiteOops,gridtenderforarulechangeequipmentcompaniesgreaterflexibility.Thesecondaryequipmentpricewardidnothappen,thegridtenderrulechangeforsecondaryequipmentindustry,theimpactoftherelativelyweakperformance.5.RecommendationsfocusonUHVanddistributionnetworksuchcompanieswebelievethatthemainfactorin2012thepowerequipmentindustryprofitgrowthpickedupthatgridbiddingruleschangewithintheindustryafterthecompanygrossmargin.Lookingtonextyear,nosustainedimprovementingrossmarginspaceindustryprofitgrowthandinvestmentgrowthless.Weproposetobringattentiontostructuredinvestmentopportunitiesinstocks.Webelievethat2013willfocusongridinvestmentUHVanddistributionnetwork,theproposedfocusontherapidgrowthofthecompany'sdistributionnetwork,suchasconfidenceElectric.Inaddition,greaterflexibilityUHVbusinessisalsoofconcern,includingChina'sWesternElectric,highlevelofelectrical,TBEA,Dalian,porcelainandsoon.Inaddition,underestimatethevalueofNARI,Sifangalsorecommendedattention.6.RiskWarning:Investmentriskislowerthanexpected