Summary of Key Points Core Viewpoint - On September 2, a total of 33 target price adjustments were made by brokerages for listed companies, with notable increases in target prices for Zhongcai International, Zhucheng Technology, and Guangyun Technology, reflecting significant potential upside in their respective sectors [1][2]. Group 1: Target Price Increases - Zhongcai International received a target price increase of 43.65%, with a new target price of 13.00 yuan [2]. - Zhucheng Technology's target price was raised by 41.51%, now set at 75.00 yuan [2]. - Guangyun Technology saw a target price increase of 35.72%, with a new target price of 22.00 yuan [2]. Group 2: Brokerage Recommendations - A total of 35 listed companies received brokerage recommendations on September 2, with notable mentions including Datang Power and China General Nuclear Power, each receiving one recommendation [3]. - Guangyun Technology's rating was upgraded from "Hold" to "Increase" by CITIC Securities [5]. Group 3: Rating Adjustments - One company, Yihua Tong, had its rating downgraded from "Buy" to "Hold" by Changjiang Securities [6]. - The only company receiving a new coverage rating was Chifeng Gold, which was rated "Buy" by CITIC Securities [7].

Group 1 - The China Securities Index for Public Utilities (000995) increased by 0.89% as of September 2, 2025, with notable gains from Shanghai Electric (600021) up 9.98%, Jilin Electric Power (000875) up 5.98%, and Huaneng Hydropower (600025) up 2.32% [1] - In July, the total electricity consumption in China reached 10,226 billion kilowatt-hours, marking an 8.6% year-on-year increase, with monthly consumption surpassing 1 trillion kilowatt-hours for the first time, indicating strong demand [1] - Dongguan Securities highlighted that the first and third industries, along with urban and rural residential electricity consumption, experienced rapid growth, while the average price of thermal coal decreased year-on-year, benefiting the profitability of thermal power companies [1] Group 2 - As of August 29, 2025, the top ten weighted stocks in the China Securities Index for Public Utilities (000995) include Yangtze Power (600900), China Nuclear Power (601985), and Three Gorges Energy (600905), collectively accounting for 56.01% of the index [2]

Macro and Strategy - The report discusses the internal tension between investment and consumption in China's economy, highlighting that the concentration of capital income among high-income groups leads to a low marginal propensity to consume, which is a primary source of investment [10][11] - It emphasizes that the imbalance between capital income and consumption demand has resulted in a continuous rise in China's capital-output ratio and a decline in capital return rates, making investment-driven growth unsustainable [10][11] Industry and Company - The automotive industry saw a 12% year-on-year increase in wholesale sales of passenger vehicles from August 1 to 24, 2025, with the collaboration between Huawei and SAIC for the H5 model opening for pre-orders [14][15] - The media and internet sector reported a 2.99% increase in industry performance, with OpenAI launching the GPT-Realtime voice model and the summer box office surpassing 11.8 billion yuan [18][21] - The public utility and environmental protection sector is focusing on the ongoing construction of a national carbon market, which is expected to drive urban green and low-carbon transformation [22][23] - The fluorochemical industry is experiencing a price increase in mainstream refrigerants, with R32 and R134a expected to see stable price growth due to limited supply and strong demand [25][29] - Yili Group reported a 5.9% year-on-year increase in revenue for Q2 2025, with improvements in profitability driven by a decrease in raw milk prices and better cost management [31][33] - Huadian International's revenue decreased by 8.98% in H1 2025 due to lower electricity prices and generation, but net profit increased by 13.15% due to reduced fuel costs [34]

Group 1: ETF Performance - The New Energy ETF has a recent trading volume of 4.6% and a transaction value of 45.71 million yuan, with an average daily transaction of 88.03 million yuan over the past week [2] - The latest scale of the New Energy ETF reached 985 million yuan, marking a three-month high, with a significant increase of 60 million shares over the past week [2] - The New Energy ETF has seen a net inflow of 75.97 million yuan, and its net value has increased by 17.29% over the past six months [2] Group 2: Historical Returns - Since its inception, the New Energy ETF has recorded a highest monthly return of 25.07%, with the longest consecutive monthly gains being four months and a maximum increase of 31.31% [2] - The average return during the rising months is 8.03%, and the ETF has outperformed its benchmark with an annualized return of 7.93% over the last three months [2] Group 3: Market Dynamics - The domestic photovoltaic glass market has seen good overall transactions, with inventory continuously decreasing and order prices increasing in September [4] - The price of 2.0mm coated glass has risen from 11 yuan/square meter to 13 yuan/square meter, reflecting an 18.18% month-on-month increase, while 3.2mm coated glass prices increased from 18.5-19 yuan/square meter to 20 yuan/square meter, a 6.67% rise [4] Group 4: Cost and Pricing Trends - Since late August, prices for silicon materials, silicon wafers, and battery cells have risen, along with increases in auxiliary materials like photovoltaic adhesive films and glass, providing cost support [5] - The recent bidding prices for component procurement have increased, driven by costs, although demand has not shown significant improvement, leading to a potential ongoing negotiation on actual transaction prices [5] Group 5: Key Stocks in the Index - The top ten weighted stocks in the China Securities New Energy Index include CATL, Sungrow, LONGi Green Energy, China Nuclear Power, and others, collectively accounting for 42.78% of the index [5]

Investment Rating - The report assigns a neutral investment rating to the company, indicating a performance expectation within a range of -5% to 10% relative to the benchmark index [11]. Core Insights - The company's projected revenue for 2024 is 29,717.04 million, with a slight increase to 30,000.49 million in 2025, and further growth expected to reach 36,180.64 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 9.53% from 2025 to 2027 [7]. - The net profit for 2024 is estimated at 7,457.54 million, with a slight decline to 7,425.99 million in 2025, followed by a recovery to 8,850.79 million by 2027, indicating a positive trend in profitability over the forecast period [7]. - The company's EBITDA is projected to grow from 24,878.00 million in 2024 to 31,640.16 million in 2027, showcasing a robust operational performance [7]. Financial Summary - **Balance Sheet**: Total assets are expected to increase from 356,871.43 million in 2024 to 415,372.46 million by 2027, with a corresponding rise in total liabilities from 253,224.90 million to 293,674.64 million [6]. - **Cash Flow Statement**: Operating cash flow is projected to rise from 18,897.33 million in 2024 to 29,222.70 million in 2027, indicating improved cash generation capabilities [6]. - **Profitability Ratios**: The gross margin is expected to decline slightly from 52.63% in 2024 to 45.88% in 2027, while the net profit margin is projected to stabilize around 20% [7]. Key Financial Metrics - The company’s earnings per share (EPS) is forecasted to increase from 0.21 in 2024 to 0.26 in 2027, reflecting a positive outlook for shareholder returns [7]. - The price-to-earnings (P/E) ratio is expected to decrease from 20.47 in 2024 to 16.17 by 2027, suggesting potential undervaluation as earnings grow [7]. - The return on equity (ROE) is projected to improve from 7.05% in 2024 to 7.44% in 2027, indicating enhanced efficiency in generating profits from shareholders' equity [7].

Market Overview - In August, the Shanghai and Shenzhen 300 Index rose by 10.33%, while the public utility index increased by 2.53% and the environmental index by 5.28% [1][22] - The public utility and environmental sectors ranked 25th and 21st respectively among 31 first-level industry classifications [1][22] - The environmental sector saw a 5.28% increase, with sub-sectors such as thermal power up by 4.69% and new energy generation up by 2.26% [1][22] Important Policies and Events - The Central Committee and State Council issued opinions on promoting green and low-carbon transformation, aiming for a nationwide carbon trading market to cover major industrial sectors by 2027 [14][15] - The opinions also emphasize energy conservation and carbon reduction in production, promoting green lifestyles, and enhancing urban ecological environment governance [15][16] Investment Strategy - Public Utilities: - Thermal power profitability is expected to remain reasonable due to synchronized declines in coal and electricity prices, recommending companies like Huadian International and Shanghai Electric [3][21] - Continuous policy support for new energy development is anticipated to stabilize profitability, recommending leading companies such as Longyuan Power and Three Gorges Energy [3][21] - Nuclear power companies are expected to maintain stable profitability, recommending China Nuclear Power and China General Nuclear Power [3][21] - High-dividend hydropower stocks are highlighted for their defensive attributes, recommending Changjiang Power [3][21] - For gas, companies with regional advantages like China Resources Gas are recommended [3][21] - Environmental Sector: - The water and waste incineration sectors are entering maturity, with improved free cash flow, recommending Everbright Environment and Zhongshan Public Utilities [3][21] - The domestic scientific instrument market presents significant opportunities, recommending Focused Photonics [3][21] - The EU's SAF policy is expected to benefit the domestic waste oil recycling industry, recommending Shanggou Environmental Energy [3][21] - The agricultural biomass power generation sector is seeing cost improvements, recommending Changqing Group [3][21] Industry Key Data Overview - In July, the total electricity consumption reached 1,022.6 billion kWh, a year-on-year increase of 8.6% [59] - The cumulative installed capacity of renewable energy reached 1.41 billion kW by the end of 2024, accounting for 42% of total installed capacity [19] - The average utilization hours of power generation equipment decreased by 188 hours compared to the previous year [76]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 4.83 [1][9]. Core Views - The company is experiencing short-term pressure on performance but continues to expand its scale. It remains a leader in offshore wind power with a rich pipeline of projects under construction and awaiting approval. The company’s net profit is expected to grow at a CAGR of 16% from 2025 to 2027 [6][7][9]. Financial Performance - In the first half of 2025, the company achieved revenue of RMB 14.736 billion, a year-on-year decrease of 2.2%, and a net profit attributable to the parent company of RMB 3.815 billion, down 5.5% year-on-year. The second quarter saw revenue of RMB 7.107 billion, a year-on-year decrease of 0.8% [6][8]. - The company’s average on-grid electricity price decreased by 10% year-on-year to RMB 386/MWh, with net profit per MWh down 36% to RMB 93 [8]. Operational Highlights - As of June 2025, the company had a total installed capacity of 49.94 GW, with 2.18 GW added in the first half of the year. The breakdown includes 7.15 GW of offshore wind, 15.82 GW of onshore wind, and 25.91 GW of solar power [7]. - The company holds a 16.2% market share in offshore wind power, 3.0% in onshore wind, and 2.4% in solar power in China [7]. Earnings Forecast - The revenue forecast for 2025 is RMB 31.239 billion, with a year-on-year growth of 5.12%. The net profit attributable to the parent company is projected to be RMB 6.493 billion, reflecting a growth of 6.24% [5][9]. - The company’s EPS is expected to be RMB 0.23 in 2025, with a PE ratio of 18.71 [5][9]. Valuation Metrics - The company’s current market capitalization is RMB 121.498 billion, with a closing price of RMB 4.25 as of August 29 [2][5]. - The company’s PEG ratio is projected at 1.32x for 2025, with a target price based on a 20x PE multiple [9][21].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][29] Core Views - The company's revenue slightly decreased in the first half of 2025, with a significant decline in net profit due to factors such as reduced average utilization hours and a decrease in average electricity prices [1][8] - The company is actively advancing its renewable energy projects, focusing on land-based wind and solar power, and has seen a continuous increase in installed capacity [2][24] - The company maintains its profit forecast, expecting net profits of 6.74 billion, 7.23 billion, and 7.74 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.24, 0.25, and 0.27 yuan [3][25] Financial Performance Summary - In the first half of 2025, the company achieved a revenue of 14.736 billion yuan, a decrease of 2.19%, and a net profit of 3.815 billion yuan, down 5.48% [1][8] - The average utilization hours for wind and solar power decreased, impacting overall performance, with wind power utilization down by 97 hours and solar power by 96 hours year-on-year [13][17] - The company added 2.1807 million kilowatts of new installed capacity in the first half of 2025, with a total operational capacity of 49.9366 million kilowatts as of June 2025 [2][24] Profit Forecast and Financial Indicators - The company forecasts net profits for 2025, 2026, and 2027 to be 6.736 billion, 7.232 billion, and 7.744 billion yuan respectively, with growth rates of 10.2%, 7.4%, and 7.1% [3][25] - The expected EPS for the same years is 0.24, 0.25, and 0.27 yuan, with corresponding PE ratios of 18.1, 16.8, and 15.7 [3][25] - The company's gross margin for the first half of 2025 was 47.06%, a decrease of 8.62 percentage points year-on-year, primarily due to lower electricity prices and increased depreciation and operational costs [17][18]

Investment Rating - The report maintains an "Overweight" rating for the utility sector [1]. Core Insights - The weighted average price of electricity in Jiangsu for September 2025 was 319.48 RMB/MWh, which is lower than market expectations. The total electricity traded was 8.111 billion kWh, with various sources contributing different amounts and prices [4]. - The report highlights a continued increase in electricity demand, with a 3.7% year-on-year growth in total electricity consumption for the first half of 2025 [15]. - The report suggests investment opportunities in green energy, photovoltaic assets, charging station assets, thermal power, hydropower, and nuclear power, emphasizing the potential for value reassessment in these areas [4]. Summary by Sections 1. Market Review - The SW utility index decreased by 0.67% from August 25 to August 29, 2025, underperforming compared to the ChiNext index [9]. - The top five gainers included Zhaoxin Co. (+33.6%) and Tianlun Gas (+13.2%), while the top five losers included ST Shengda (-9.5%) and Jiawei New Energy (-7.9%) [13]. 2. Electricity Sector Tracking 2.1. Electricity Consumption - Total electricity consumption in H1 2025 reached 4.84 trillion kWh, reflecting a 3.7% year-on-year increase [15]. - The growth rates for different sectors were: primary industry (+8.7%), secondary industry (+2.4%), tertiary industry (+7.1%), and urban-rural residential consumption (+4.1%) [15]. 2.2. Power Generation - Total power generation in H1 2025 was 4.54 trillion kWh, with a year-on-year increase of 0.8%. However, thermal and hydropower generation saw declines of 3.1% and 2.9%, respectively [23]. 2.3. Electricity Prices - The average electricity purchase price in August 2025 was 388 RMB/MWh, down 2% year-on-year but up 1.3% month-on-month [41]. 2.4. Thermal Power - The price of thermal coal at Qinhuangdao port was 690 RMB/ton as of August 29, 2025, a decrease of 17.76% year-on-year [46]. - The cumulative installed capacity of thermal power reached 1.47 billion kW, with an increase of 4.7% year-on-year [49]. 2.5. Hydropower - The water level at the Three Gorges Reservoir was 162.19 meters, which is normal compared to previous years. Inflow and outflow rates increased by 35.48% and 47.46% year-on-year, respectively [55]. 2.6. Nuclear Power - In 2024, 11 new nuclear units were approved, indicating a positive trend in the development of nuclear power [67]. 2.7. Green Energy - New installations of wind and solar power in H1 2025 increased by 99% and 107% year-on-year, respectively [4]. 3. Investment Recommendations - The report recommends focusing on companies like Changjiang Electric for high dividend yield assets, and suggests monitoring companies involved in green energy and charging stations for potential value reassessment [4].

Group 1 - The core viewpoint of the news highlights the performance and trends in the modern energy sector, particularly focusing on the Central State-Owned Enterprises (SOEs) and their investment activities in renewable energy projects [3][4][5] - As of August 29, 2025, the Central State-Owned Enterprises Modern Energy ETF has shown a net value increase of 19.80% over the past two years, with a maximum monthly return of 10.03% since its inception [4] - The top ten weighted stocks in the Central State-Owned Enterprises Modern Energy Index account for 48.28% of the index, indicating a concentrated investment in key players within the energy sector [5] Group 2 - In the first half of 2025, China's total investment in new energy projects reached approximately 1.4 trillion yuan, despite a year-on-year decline of 32.2%, with wind and solar power investments showing significant decreases [3] - Wind power projects attracted 365.4 billion yuan, while solar power projects received 195 billion yuan, reflecting a saturation in traditional energy markets but continued interest in offshore wind and other niche areas [3] - Water power sector demonstrated resilience in profitability, with leading companies like Yangtze Power achieving a 14.9% year-on-year increase in net profit despite challenges in water supply [3]