As oil price raised to above USD60 per barrel this week, renewable energy became focus of the political circle again. Currently, more attentions were paying to grid-connected power generating.
Viewed from current valuation of new energy sector, premium of dynamic P/E ratio of individual shares in 2009 is around 100% against that of CSI 300, which are mostly at 40x-50x, far above 15x-25x of those overseas companies (premium is within 40% compared with that of S&P 500). As analyzed above, we do not recommend individual shares of the sector this week.