Investment Rating - The report maintains a "Positive" outlook on the public utilities and environmental sectors, particularly in electricity and natural gas [1]. Core Insights - The report highlights a recovery in electricity consumption in June, driven by the tertiary sector and residential usage, with a total electricity consumption of 8,670 billion kWh, representing a year-on-year growth of 5.4% [15][17]. - Natural gas consumption showed a slight increase in June, with a total apparent consumption of 35.05 billion m³, up 1.4% year-on-year, indicating a recovery in industry sentiment [21][48]. - The report emphasizes the ongoing optimization of energy structure in China, with significant contributions from renewable energy sources, particularly solar and nuclear power [2][8]. Summary by Sections 1. Electricity: June Consumption Growth Accelerates - In June, the industrial electricity generation reached 7,963 billion kWh, a year-on-year increase of 1.7% [7][9]. - The breakdown of electricity generation types shows a decline in hydropower by 4.0%, while nuclear power grew by 10.3%, and solar power surged by 18.3% [9][15]. - The report notes that the second industry contributed significantly to the electricity increment, accounting for 38% of the total increase [16][17]. 2. Natural Gas: Global Price Decline and June Consumption Growth - The report states that the apparent consumption of natural gas in June was 35.05 billion m³, marking a 1.4% increase year-on-year [21][48]. - The average price of LNG in Northeast Asia decreased to $11.90/mmBtu, reflecting a broader trend of declining global gas prices [22][41]. - The report anticipates that the long-term outlook for natural gas will improve due to rising LNG export capacities from the US and the Middle East [48]. 3. Weekly Market Review - The public utilities and environmental sectors underperformed compared to the CSI 300 index, while the electrical equipment sector outperformed [50]. 4. Company and Industry Dynamics - The report mentions the increase in installed capacity for solar and wind energy, with solar capacity growing by 54.2% year-on-year [53]. - It highlights the ongoing construction of large seawater desalination projects in coastal provinces to support high water-consuming industries [53]. 5. Key Company Valuation Table - The report includes a valuation table for key companies in the public utilities and environmental sectors, indicating potential investment opportunities [60].

Core Viewpoint - The company, backed by China Resources Group, has strong thermal power assets and operational management capabilities, with significant growth in renewable energy capacity expected during the 14th Five-Year Plan period. The planned spin-off of China Resources New Energy for A-share listing is anticipated to alleviate capital expenditure pressure. The initial coverage gives a "Buy" investment rating [1]. Group 1: Company Overview - The company is the only power platform under China Resources Group, with rapid growth in renewable energy capacity in recent years. By the end of 2024, the total installed capacity will reach 72.43 GW, with thermal power, wind power, solar power, and hydropower accounting for 53%, 33%, 13%, and 1% respectively [1]. - The company's revenue for 2024 is projected to be HKD 105.284 billion, a year-on-year increase of 1.9%, with a net profit attributable to shareholders of HKD 14.388 billion, reflecting a year-on-year growth of 30.8% [1]. Group 2: Operational Efficiency - The company has a competitive edge in thermal power generation, with coal power utilization hours projected at 4,731, 4,688, and 4,625 hours for 2022-2024, respectively. The unit fuel costs are expected to decrease from 0.339 to 0.276 CNY/kWh over the same period, indicating superior operational management [2]. - Compared to other national thermal power companies, the company has lower unit fuel costs and higher thermal power profit margins, showcasing its operational excellence [2]. Group 3: Renewable Energy Strategy - The company has a differentiated competitive advantage in wind power projects, primarily located in Class IV resource areas, with less pressure on subsidy repayments compared to large base projects. The focus is on project profitability rather than scale, with wind and solar utilization hours exceeding industry averages [2]. - For 2025, the company plans to commission 10 GW of new renewable energy and 6.09 GW of coal power, aiming for renewable energy to account for 50% of its installed capacity, aligning with its 14th Five-Year Plan goals [2]. Group 4: Financial Outlook - The planned spin-off of China Resources New Energy is expected to raise HKD 24.5 billion for developing 7.175 million kW of renewable and energy storage projects, alleviating capital expenditure pressure [3]. - Revenue projections for 2025-2027 are HKD 105.744 billion, HKD 114.065 billion, and HKD 121.665 billion, with net profits of HKD 14.789 billion, HKD 15.484 billion, and HKD 16.082 billion, reflecting growth rates of 0.4%, 7.9%, and 6.7% respectively [3].

Investment Rating - The report initiates coverage with an "Accumulate" investment rating for China Resources Power (00836.HK) [1][6]. Core Views - China Resources Power has a strong foundation in high-quality thermal power assets and robust operational management capabilities. The company is well-positioned in the renewable energy sector, with significant growth expected during the 14th Five-Year Plan period. The planned spin-off of China Resources New Energy for A-share listing is anticipated to alleviate capital expenditure pressures [1][6]. Financial Data and Valuation - The company’s main revenue is projected to grow from HKD 103.33 billion in 2023 to HKD 121.67 billion by 2027, with a compound annual growth rate (CAGR) of approximately 7% [2]. - Operating profit is expected to increase from HKD 19.75 billion in 2023 to HKD 22.47 billion in 2027, reflecting a CAGR of about 5% [2]. - Net profit is forecasted to rise from HKD 11.00 billion in 2023 to HKD 16.08 billion in 2027, with a CAGR of around 4% [2]. - Earnings per share (EPS) is anticipated to grow from HKD 2.29 in 2023 to HKD 3.32 in 2027 [2]. Company Overview - China Resources Power is the only power platform under China Resources Group, with a diversified energy portfolio including thermal, wind, solar, and hydro power. As of the end of 2024, the company’s total installed capacity reached 72.43 GW, with thermal power accounting for 53%, wind power 33%, solar power 13%, and hydro power 1% [6][12]. - The company has a strong presence in economically developed regions, with 27.25% of its capacity located in Central China and 23.72% in Eastern China [12][13]. Operational Efficiency - The company’s thermal power plants are strategically located in regions with high electricity demand, leading to higher utilization hours compared to national averages. The average utilization hours for coal-fired power plants were 4,731 in 2022, 4,688 in 2023, and 4,625 in 2024 [6][22]. - The company has successfully reduced fuel costs, with the unit fuel cost decreasing from HKD 0.339/kWh in 2022 to HKD 0.276/kWh in 2024 [6][22]. Renewable Energy Growth - The company plans to add 10 GW of new renewable energy capacity and 6.09 GW of coal power by 2025, aiming for renewable energy to constitute 50% of its total installed capacity [6][22]. - The renewable energy segment has become a significant contributor to profits, with net profit from renewable sources reaching HKD 90.29 billion in 2024, accounting for 62.8% of the company’s total net profit [6][22]. Capital Expenditure and Financial Health - The company’s capital expenditure for 2024 is projected to be HKD 534.33 billion, with 70.5% allocated to renewable energy projects [6][42]. - The debt-to-asset ratio is expected to remain relatively low at 67% by the end of 2024, indicating a stable financial position [6][42]. Dividend Policy - The company has maintained a stable dividend payout ratio above 40% over the past five years, with a dividend of HKD 1.415 per share in 2023, reflecting a growth of 141.47% year-on-year [6][44].

3号机组采用先进的超超临界二次再热技术，并具备18%BMCR负荷深度调峰能力，显著提升了机组在新型电力系统中的灵活性和适应性，有力 支撑新能源消纳。机组在168小时试运期间，锅炉、汽轮机、发电机等主要设备及其附属设备运行安全稳定，自动、仪表、保护投入率、汽水品 质合格率均达到100％，脱硫、脱硝、除尘装置投入率达到100%，各项环保指标达到国家超低排放要求。 后续，该机组将同步配套污泥掺烧系统，在原有全球最大污泥耦合掺烧全量化处置工程的基础上，增加掺烧污泥量，为深圳市固废处置提供核 心支撑，助力"无废城市"建设。 深汕公司始终坚持"争创国家优质工程金奖"的建设目标，自2023年6月28日开工以来，项目按照高标准开工、高质量建设、高水平投产的"三 高"要求，全力克服酷暑、台风、暴雨天气等自然环境的挑战，勇攀电力建设高峰，确保了工程建设顺利推进。 深圳商报·读创客户端记者 刘淑芳 近日，华润电力深汕公司3号机组圆满完成168小时满负荷试运行，成为华南地区"十四五"期间核准并建成投产的首台百万千瓦级超超临界二次 再热燃煤机组。 深汕公司3号、4号机组扩建工程是广东省"十四五"建设的清洁煤电重点工程，是粤港澳大湾区重 ...

Investment Rating - The investment rating for the utility sector is "Positive" (maintained) [4] Core Insights - The report emphasizes the importance of core assets in Hong Kong's electric power equipment sector, highlighting the strong approval of coal power installations and the ongoing demand for pumped storage [5][6] - The report indicates that the approval of coal power installations is expected to remain high, with approximately 31 GW approved in the first half of 2025, maintaining levels similar to 2024 [17] - The report notes that the growth in electricity load is expected to outpace overall electricity consumption growth, indicating a long-term trend that will rely heavily on conventional power sources [18] - The wind power sector is experiencing a slowdown in the rapid scaling of turbine sizes, which may lead to improved profitability for wind turbine manufacturers [22][34] Summary by Sections Electric Power Equipment - The report highlights the strong approval of coal power installations, with 90 GW, 83 GW, and 78 GW approved in 2022, 2023, and 2024 respectively, and an expectation to exceed 80 GW in 2025 [17] - The demand for pumped storage is projected to remain high, with significant approvals in recent years, indicating a robust market for this segment [21] - Key companies to focus on include Harbin Electric, Dongfang Electric (H), and Goldwind Technology (H), along with A-share counterparts [6][34] Electricity Production - In June 2025, the industrial electricity production reached 796.3 billion kWh, a year-on-year increase of 1.7%, with a daily average of 26.54 billion kWh [35] - The report notes a narrowing decline in hydropower output and an acceleration in solar power generation, while wind and thermal power growth has slowed [35][38] Coal Industry - In June 2025, coal imports decreased significantly, with a year-on-year decline of 25.9%, attributed to low domestic coal prices [43] - The report indicates that domestic coal production is at a turning point, with a year-on-year increase of 3.0% in June, but with pressures from low prices affecting production levels in key regions [57] - Recommendations include focusing on leading coal companies with high long-term contracts, such as China Coal Energy and China Shenhua Energy [43]

Core Insights - The national maximum electricity load in China has reached a historical high of 15.06 billion kilowatts, marking an increase of 0.55 billion kilowatts compared to last year's peak [1] - The rise in electricity load is attributed to higher temperatures and positive economic growth, with 16 provincial power grids breaking historical records multiple times [1] - The National Development and Reform Commission (NDRC) anticipates a year-on-year increase of approximately 1 billion kilowatts in peak summer electricity load by 2025 [2] Group 1: Electricity Supply and Demand - Various local power departments are implementing measures from the power source, grid, and consumption sides to meet electricity demand, including large-scale energy storage utilization [2] - The State Grid of Jiangsu has activated 64 grid-side and 29 power-side energy storage stations, achieving a maximum discharge capacity of 7.14 million kilowatts, sufficient to meet the hourly electricity needs of about 48 million households [2] - The overall electricity supply and demand balance is expected to be better than last year, with the National Energy Administration closely monitoring the situation [2] Group 2: Company Performance and Market Outlook - High temperatures are expected to boost thermal power generation, with companies like Huayin Power forecasting a net profit increase of 3600.70% to 4423.07% year-on-year for the first half of 2025 [3] - Jingneng Power anticipates a net profit increase of approximately 100.13% to 131.16% for the same period [3] - The electricity sector is expected to see profit improvement and value reassessment due to ongoing power supply-demand tensions and gradual electricity price increases [3] Group 3: Related Companies - China Resources Power reported a 3.8% year-on-year increase in electricity sales for the first half of 2025, with wind and solar power sales increasing by 15.5% and 31.3%, respectively [4] - Huadian International is in the process of acquiring 80% of Huadian Jiangsu Energy, with a restructuring plan approved by regulators [4] - Datang Renewable Energy announced a 10.22% year-on-year increase in electricity generation for the first half of 2025 [4]

华润电力：上半年累计售电量同比增加3.8% 金十数据7月14日讯，华润电力(00836.HK)公告，2025年首六个月附属电厂累计售电量达到101,979,952 兆瓦时，同比增加了3.8%，其中，附属风电场累计售电量达到25,864,138兆瓦时，同比增加了15.5%； 附属光伏电站累计售电量达到4,135,561兆瓦时，同比增加了31.3%。2025年6月附属电厂售电量达到 17,227,564兆瓦时，同比增加了2.2%。 ...

Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Insights - The increase in renewable energy consumption responsibility weight is expected to generate an additional demand of approximately 510 billion kilowatt-hours of new energy by 2025 [2][6][19] - The transition of the aluminum electrolysis industry from monitoring to assessment will significantly boost the demand for non-hydropower green certificates, estimated at around 150 million certificates [7][26] - The inclusion of four major energy-consuming industries (steel, cement, polysilicon, and data centers) into monitoring is projected to create a potential demand for approximately 800 million non-hydropower green certificates [8][29] Summary by Sections Renewable Energy Consumption Responsibility Weight - The responsibility weight for renewable energy consumption will significantly increase in 2025, with unfulfilled portions not carried over to the next year. The new policy mandates that the responsibility weight must be completed within the year [6][17] - The "Three North" regions have a higher responsibility weight, with provinces like Inner Mongolia, Gansu, Jilin, Heilongjiang, and Qinghai set at 30%, while regions like Shanghai and Guangdong remain below 15% [18] Electrolytic Aluminum Green Power Consumption - The green power consumption ratio for the electrolytic aluminum industry will shift from monitoring to assessment in 2025, leading to a significant increase in demand for non-hydropower green certificates [7][26] - The estimated demand for non-hydropower green certificates from the electrolytic aluminum sector is about 150 million certificates due to the new assessment requirements [26] Expansion of Monitoring to Other Industries - The addition of steel, cement, polysilicon, and data centers into the monitoring framework is expected to create a substantial potential demand for green certificates, estimated at around 800 million certificates [8][29] - The projected total demand from these sectors could reach approximately 980 billion kilowatt-hours of new energy, accounting for about 53% of the 2024 new energy volume [34] Supply and Demand Dynamics - The demand side is expected to expand significantly due to the assessment of the electrolytic aluminum industry and the inclusion of new energy-consuming sectors, while the supply side will see a reduction in the issuance of green certificates due to policy changes [8][34] - The overall market dynamics are anticipated to shift from a surplus supply to a more balanced state, providing long-term support for green certificate prices [8][34]

Group 1 - The maximum national electricity load reached 1.465 billion kilowatts, setting a historical record, which accelerates the construction of a new power system and enhances response capabilities [1] - The National Development and Reform Commission reported that the power supply capacity is being improved, with the power supply and demand situation for the summer peak being better than last year, ensuring overall balance [1] - The State Grid is deepening the application of "AI + repair" to enhance efficiency in energy management and fault recovery [1] Group 2 - In 2025, the total investment in the two grids is expected to reach a historic high of 825 billion yuan, with a focus on transmission grid investments [2] - The State Grid has initiated reforms to support incremental distribution reform trials and is actively researching virtual power plants and new energy storage [2] Group 3 - The Southern Power Market has transitioned to continuous settlement trial operation, allowing for daily trading and real-time cross-province electricity transactions [3] - The market now includes 220,000 market participants with daily trading volume of 3.8 billion kilowatt-hours, indicating a shift towards a more diversified electricity trading environment [3] - The upcoming summer peak demand and the acceleration of the national unified electricity market construction are expected to positively impact the electricity sector [3] Group 4 - Relevant Hong Kong stocks in the electricity sector include China Huadian Corporation (01071), Huaneng International Power Development (00902), China Power International Development (02380), China Resources Power (00836), Datang International Power Generation (00991), and China General Nuclear Power (01816) [4] Group 5 - Key companies in the power equipment sector include Dongfang Electric (01072), Shanghai Electric (02727), and Harbin Electric (01133) [5]

Investment Rating - The report maintains a "Positive" investment rating for the power industry [11] Core Insights - The performance outlook for thermal power remains positive despite a decline in electricity prices and generation in Q2, driven by a significant decrease in coal prices [2][6] - Hydropower generation faces pressure due to high base effects and reduced rainfall, but some companies may achieve stable growth through optimized reservoir management [7][28] - Nuclear power generation continues to grow, but performance may vary by region due to differing impacts from market electricity prices [7][29] - Renewable energy generation (wind and solar) shows steady growth, but performance disparities exist across regions, influenced by local utilization hours [8][33] Summary by Sections Thermal Power - Key factors affecting thermal power profitability include coal prices, electricity prices, and generation volume. In Q2, coal prices decreased significantly, with the Qinhuangdao Q5500 coal price averaging 631.61 yuan/ton, down 216.85 yuan/ton year-on-year [20][21] - The overall electricity price across regions has declined, but northern regions like Inner Mongolia and Xinjiang show relatively strong performance [6][17] - Despite a year-on-year decline in thermal power generation hours and prices, the significant drop in coal prices is expected to stabilize thermal power operations, particularly in northern and eastern regions [26][21] Hydropower - Hydropower generation saw a year-on-year decline of 11.02% in April-May due to high base effects and less rainfall [28][31] - Major hydropower companies with better asset quality may still achieve stable growth through effective water management strategies [28] Nuclear Power - Nuclear power generation increased by 9.57% year-on-year in April-May, supported by a larger installed capacity and fewer maintenance days [29][31] - The impact of market electricity price fluctuations varies, with companies like China Nuclear Power being less affected compared to others [29] Renewable Energy - Wind and solar generation increased by 11.87% and 11.68% year-on-year, respectively, but utilization hours have decreased [33][36] - Regional disparities in performance are evident, with eastern and central provinces showing improved wind utilization hours, while coastal provinces like Guangdong and Fujian experienced significant declines [33][39] Investment Recommendations - The report recommends focusing on quality thermal power operators such as Huadian International, Huaneng International, and China Power, as well as major hydropower companies like Yangtze Power and Guotou Power [9][44] - For renewable energy, companies with balanced national layouts like Longyuan Power and China Nuclear Power are expected to perform well [9][44]