"Bu Neng" enters the fast lane, pointing to the "city of overcharging"! Multiple regions have issued policies intensively, and Shenzhen has issued a document
On September 15th, the Shenzhen Development and Reform Commission issued the "Several Measures to Promote Consumption in Shenzhen", encouraging automobile consumption and supporting housing consumption. In the Measures, it is mentioned that Shenzhen should accelerate the construction of a "city of overcharging": by the end of 2024, a total of 450000 charging piles, 175 super fast charging stations, 85 V2G demonstration stations, and 30 comprehensive energy supply stations will be built.
The construction of Shenzhen's "Supercharged City" is just a microcosm of the national energy replenishment field. According to incomplete statistics by reporters, since the second half of 2023, more than 20 charging infrastructure related policies have been released across the country. Why has replenishment become a focus of development for various regions and cities? What impact will it have on relevant listed companies?
Shenzhen focuses on automobile consumption and points to the "city of overcharging"
The construction of Shenzhen as a "city of overcharging" has become one of the important measures to encourage automobile consumption.
The Measures mention the need to accelerate the construction of a "city of overcharging", promote the integration, scientific coordination, and comprehensive upgrading of new energy vehicle charging infrastructure planning with gas stations, electricity, transportation, and other planning. Convenient charging and battery swapping services for Hong Kong single license plate and Shenzhen Hong Kong license plate electric vehicles, promoting the installation of charging converters in charging facilities in areas with concentrated consumption by Hong Kong residents. Accelerate the construction of a convenient and efficient charging network, and by the end of 2024, a total of 450000 charging stations, 175 super fast charging stations, 85 V2G demonstration stations, and 30 comprehensive energy supply stations will be built.
Independent international strategy researcher Chen Jia told reporters, "Whether it is the recent intensive issuance of local supporting documents and policy measures in Shenzhen and other places to cooperate with the central acceleration of charging infrastructure construction, or the rapid development of charging and energy storage systems, virtual power plants, and electricity spot markets in various parts of China in the second half of the year, it can be seen as the accelerated promotion of relevant industry chain policies at the level of balancing regional economy. Looking forward to the future, if this trend is promoted, the intelligence and digitization of domestic energy storage systems and charging networks will accelerate the transformation, and the competition for new energy sources' overcharging cities' across the country will become increasingly fierce."
Behind Shenzhen Jianzhi's "City of Supercharging" lies the rapid development of Shenzhen in the field of new energy vehicles, which has given rise to a vast demand for charging infrastructure. At the China ASEAN Emerging Industries Forum attended by reporters in early July, Xiao Zuping, Deputy Director of the Shenzhen Municipal Bureau of Industry and Information Technology, stated that Shenzhen actively responds to the national strategy of developing new energy vehicles. The total number of new energy vehicles in the city has exceeded 860000, and the electrification level of public vehicles in the city is leading nationwide, with a penetration rate of new vehicle electrification exceeding 60%.
According to the Special Plan for New Energy Vehicle Charging Facilities issued by the Shenzhen Development and Reform Commission, the scale of new energy vehicles in Shenzhen will reach 1.3 million by the end of 2025. The construction of matching charging infrastructure has also become a top priority. According to the plan, by 2025, Shenzhen will build 300 overcharging stations, with a ratio of 1:1 between overcharging stations and gas stations, and preliminarily build a "city of overcharging".
In addition to the construction of charging stations and overcharging stations, Shenzhen will also make efforts in areas such as battery swapping to encourage car consumption. The Measures mention supporting the pilot of new energy vehicle battery swapping models, taking the lead in piloting new energy battery swapping vehicles in heavy trucks and other fields, and providing subsidies for battery swapping heavy truck vehicles that meet the pilot conditions. Encourage social capital to invest in and operate new energy vehicle universal battery swapping demonstration stations, and provide support in land use, approval, and operation.
In response to the renovation and upgrading of electric bicycle charging facilities, the Measures mention the promotion of local standards for the construction and operation management of electric bicycle centralized charging facilities. New and expanded public and residential buildings should be equipped with centralized charging facilities, with priority given to setting up charging cabinets and battery swapping cabinets. Support for charging and battery swapping facility operation management enterprises to accelerate the renovation and upgrading of existing facilities in accordance with local standards.
Overall, the construction of the "Supercharged City" is only one manifestation of Shenzhen's new energy vehicle infrastructure construction. Why can Shenzhen continue to be at the forefront of new energy vehicle infrastructure development?
Renowned commentator and expert at Changjiang Cloud Think Tank, Xie Xiaowen, said in an interview with reporters, "There are mainly the following reasons: first, the strong support of the Shenzhen Municipal Government for the new energy vehicle industry is an important factor. The government not only provides strong support in policies, but also invests a large amount of resources, including funds and manpower, in practical actions to ensure the construction and development of new energy vehicle infrastructure. Secondly, as China's science and technology innovation center, Shenzhen has strong scientific and technological research and development capabilities. This enables Shenzhen to take the lead in the technology and application of new energy vehicle charging infrastructure. Thirdly, Shenzhen's geographical location and urban scale also provide favorable conditions for its development of new energy vehicle infrastructure. Shenzhen is located in the Pearl River Delta." "Convenient transportation and dense population provide a broad market space for the promotion and popularization of new energy vehicles."
More than 20 policies have been intensively released in the field of energy supplementation from multiple regions
Shenzhen Jianzhi, also known as the "City of Supercharge," is just a microcosm of the field of energy replenishment in various parts of the country. According to incomplete statistics by reporters, since the second half of 2023, more than 20 charging infrastructure related policies have been released across the country.
In September this year, the Ministry of Industry and Information Technology and seven other departments issued the "Work Plan for Stable Growth in the Automotive Industry", which mentioned improving infrastructure construction and operation, implementing the "Guiding Opinions on Further Building a High Quality Charging Infrastructure System", and optimizing the supporting environment.
In July this year, the National Development and Reform Commission and other departments issued the "Several Measures to Promote Automobile Consumption", which clearly stated the need to strengthen the construction of supporting facilities for new energy vehicles, implement policies and measures such as building a high-quality charging infrastructure system, and support new energy vehicles going to rural areas.
From a local perspective, multiple provinces and cities such as Guangdong, Jilin, Shandong, Hunan, Gansu, Henan, Zhejiang, and Jinan have also introduced policies to encourage the development of charging infrastructure.
In September of this year, the General Office of the People's Government of Guangdong Province issued the "Implementation Plan for Expanding Domestic Demand Strategy in Guangdong Province", which specifies the need to accelerate the construction of charging infrastructure in areas such as highway service areas and along highways, gradually achieving full coverage of charging facilities in eligible residential areas and commercial parking lots.
In September, the Shandong Provincial Government held a policy briefing to interpret the "Three Year Action Plan for Promoting Rural Development in Shandong Province", which proposed that by 2025, the province's public and residential charging infrastructure will reach 180000 and 900000 units respectively. By 2025, the proportion of public fast charging piles in urban areas will reach over 70%, creating a "ten minute fast charging circle". By 2025, achieve full coverage of public charging stations in rural areas.
In September of this year, the Development and Reform Commission of Ningxia Autonomous Region issued the "Implementation Plan for Further Enhancing the Service Guarantee Capacity of Charging Infrastructure in the Autonomous Region", which clearly stated that by 2025, the scale of charging infrastructure in the entire region will reach 500 public charging stations, 7 swapping stations, and 3000 public charging piles, and a charging infrastructure system with broad coverage, moderate scale, and reasonable structure will be preliminarily built.
Why are various regions rushing to invest in the construction of charging infrastructure? An Guangyong, an expert from the Credit Management Committee of the All China Association for Mergers and Acquisitions, said in an interview with reporters, "Firstly, new energy vehicles are considered an important means to reduce pollution and respond to climate change. The government supports the construction of charging facilities to promote their development and popularization. In addition, the construction of charging infrastructure can create employment opportunities, attract investment, and promote economic structural upgrading. Improving the level of charging services also helps to increase people's acceptance of new energy vehicles and promote market growth."
The performance of listed companies has rebounded, ushering in new development opportunities
Against the backdrop of investing in the field of energy supplementation in multiple regions, A-share charging pile concept listed companies are also facing a new round of development opportunities.
According to Wind statistics, as of September 16th, there were a total of 38 A-share charging pile concept listed companies with a total market value of nearly 500 billion yuan, of which 28 achieved year-on-year growth in net profit in the first half of 2023, accounting for over 70%.
According to data from the Charging Alliance, as of June 2023, the number of charging stations in China reached 6.652 million, a year-on-year increase of 69.8%. Among them, the number of public charging stations was 2.149 million, a year-on-year increase of 40.6%, and the number of private charging stations was 4.503 million, a year-on-year increase of 88.4%.
In terms of segmentation, the charging pile industry chain includes equipment manufacturing and operation links. The upstream of the industrial chain mainly consists of suppliers of charging pile equipment components and parts, the midstream mainly consists of charging pile manufacturers, and the downstream mainly consists of charging service operators and end customers.
From the perspective of manufacturing, the charging module in the upstream charging pile equipment is the core equipment, exhibiting characteristics such as high barriers and highly concentrated market share. Caixin Securities predicts that the global market space for charging modules will reach 65.6 billion yuan in 2027, corresponding to a compound annual growth rate of 56% over the next five years. From the perspective of the entire market, Caixin Securities predicts that under the dual effects of market and policy, the global market space for charging piles will reach 192.9 billion yuan in 2027, corresponding to a compound annual growth rate of 45% over the next five years.
From the perspective of operational aspects, specific operators can be divided into three categories: the first category is specialized operating enterprises represented by TEDA, Yunkuai, Xiaoju, Xingxing, and Yiwei Energy; the second category is state-owned enterprises represented by State Grid, Southern Power Grid, and China Putian; and the third category is whole vehicle enterprises represented by BYD, Tesla, NIO, Xiaopeng, and SAIC.
Previously, downstream charging service operators had been suffering losses for years due to "horse racing and land grabbing" and high initial investment and construction costs, but this situation is gradually improving. According to the semi annual report of Trude, the company's charging network business achieved a revenue of 2.367 billion yuan in the first half of the year, a year-on-year increase of 49.69%, and a gross profit of 330 million yuan, a year-on-year increase of 34.79%. Among them, Terede's subsidiary, Terede, engaged in charging and swapping business, had a net loss of 71 million yuan, a year-on-year decrease of 40 million yuan.
According to a research report by Caixin Securities, "In the future, as the cost of charging piles decreases, the utilization rate, power, and electricity revenue of single piles increase, new business models such as integrated light storage and charging, vehicle network interaction are further developed, and electricity market transactions are gradually developing. Top operating companies are expected to cross the breakeven point and achieve profit improvement."
Financial commentator Zhang Xuefeng said in an interview with reporters, "With the advancement of charging infrastructure construction, the demand for charging piles in the market will significantly increase, and listed companies in the charging pile field will have more opportunities to participate in projects and expand market share. In addition, the government will strongly regulate the order of the charging market and improve the level of charging services. The advantages of listed companies in terms of technological innovation, product quality, and service capabilities will be fully utilized. However, at the same time, attention should also be paid to the intensification of market competition and the impact of technological progress. Listed companies need to maintain innovation capabilities and market sensitivity in order to obtain sustainable development opportunities in the charging pile field."
