The government's support for using clean-energy vehicles is believed to be good news for producers of electric-car recharging equipment, analysts say.

According to a report released by Shenyin & Wanguo Securities, the market value of electric-car recharging facility equipment is estimated to be 1.4 billion yuan annually.

Shenzhen, the first city to promote electric vehicles, plans to invest 339 million yuan over the next five years to purchase recharging equipment for 250 recharging stations and 12,500 parking-lot-based recharging towers.

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"Before electric cars take off, infrastructure supporting the use of these vehicles will explode," said Shi Xiaoyun, an analyst at First Capital Securities.

"Recharging equipment suppliers will be the first to benefit from this newly emerging market and the potential is huge," said the Shenyin & Wanguo report.

As the only listed recharging equipment manufacturer in the A-share market, Shenzhen Auto Electric Power Plant Co Ltd (ATC) may be the winner following future infrastructure expansion.

To date, ATC has been involved in the construction of two electric-car recharging stations and the installation of 134 recharging towers in Shenzhen.

It is expected to partner with the State Grid Corporation of China, the nation's biggest power transmission and distribution company, to construct future recharging facilities in other cities including Tianjin, Xi'an, Nanchang, Wuhan and Hefei.

The company's shares have risen 27 percent this month to close at 27.5 yuan yesterday in Shenzhen, compared with an 11 percent drop on the Shenzhen Component Index during the same period.

The current share price represents a price-earnings ratio of 66.1 times its estimated 2009 net profit per share and 53 times 2010 estimated earnings, said Shi of First Capital.