Dim Sum Express

Power Equipment: Power sector reform progress review; Guangdong to offer experience asreform pioneer

    We believe the power sector reform in Guangdong will provide useful experience for reform acrossthe entire country with regard to trading rules, trading volume, settlement rules and power gridcontrol. In addition, independent electricity retailers will also take part in power sector reform inregions covered by the state grid by assuming the role of load integrators. The reconstruction ofindustry rules triggered by the reform will enhance electricity retailers’ profits in the short term. Weremain positive on electricity retailers with strong user acquisition capabilities and an asset-lightoperating model.

    Machinery: New business model for vertical parking to come in sight on policy catalysts

    A new business model for vertical parking is to be created where various preferential policies will beimplemented to stimulate the operation of vertical parking lots, which in turn is intended to driveequipment demand. We see the following trends in industry development going forward: 1) theproportion of high-end, automated vertical parking lots will rise; 2) the industry will become lessdependent on new property development but more driven by users’ demand; 3) over time, equipmentmanufacturers will extend their business coverage further towards the backend, namely theoperation of parking lots.