Market Overview - The electricity sector experienced a decline of 1.77% on the previous trading day, with JianTou Energy leading the drop [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Stock Performance - Tianfu Energy (600509) saw a closing price of 8.58, with an increase of 4.00% and a trading volume of 660,100 shares [1] - JianTou Energy (000600) reported a closing price of 9.12, down 5.00%, with a trading volume of 638,100 shares and a transaction value of 589 million yuan [2] - China Nuclear Power (601985) closed at 8.98, down 4.26%, with a trading volume of 3,121,600 shares and a transaction value of 2.84 billion yuan [2] Capital Flow - The electricity sector saw a net outflow of 1.027 billion yuan from main funds, while retail funds recorded a net inflow of 281 million yuan [2] - Tianfu Energy had a net inflow of 97.05 million yuan from main funds, but a net outflow of 88.32 million yuan from retail investors [3] - The overall capital flow indicates a mixed sentiment among different investor types within the electricity sector [2][3]

Core Viewpoint - The 2025 High-Quality Development Forum for Listed Companies and the 27th Golden Bull Award Ceremony highlighted the achievements of outstanding companies and individuals in the Chinese capital market, with China National Nuclear Power's chairman and secretary winning prestigious awards [1][6]. Group 1: Awards and Recognition - The Golden Bull Award, established in 1999 by China Securities Journal, aims to create a credible platform for showcasing listed companies and recognizing their performance in governance, growth, and shareholder returns [6]. - China National Nuclear Power's chairman, Lu Tiezong, received the "Golden Bull Outstanding Entrepreneur Award," while the company's secretary, Zhang Hongjun, was awarded the "Golden Bull Secretary Award" [1][6]. Group 2: Company Vision and Commitment - Lu Tiezong emphasized that China National Nuclear Power will continue to implement a rational, coordinated, and progressive nuclear safety concept to promote high-quality development in nuclear power [6]. - The company aims to accelerate the construction of a "clean, low-carbon, safe, and efficient" modern energy system, contributing to the construction of a beautiful China and a community with a shared future for mankind [6].

Core Viewpoint - China Nuclear Power's stock has experienced a decline of 10.52% year-to-date, with a recent drop of 2.03% on October 31, 2023, indicating potential challenges in the market [1]. Financial Performance - For the period from January to September 2025, China Nuclear Power reported a revenue of 61.635 billion yuan, reflecting a year-on-year growth of 8.16%. However, the net profit attributable to shareholders decreased by 10.42% to 8.002 billion yuan [2]. - Cumulatively, since its A-share listing, China Nuclear Power has distributed a total of 24.280 billion yuan in dividends, with 10.560 billion yuan distributed over the past three years [3]. Shareholder Information - As of September 30, 2025, the number of shareholders for China Nuclear Power reached 416,300, an increase of 17.80% from the previous period. The average number of circulating shares per shareholder decreased by 15.11% to 45,363 shares [2]. - The top ten circulating shareholders include China Securities Finance Corporation, holding 465 million shares, and Hong Kong Central Clearing Limited, which reduced its holdings by 22.9 million shares to 290 million shares [3].

Investment Rating - The report maintains a "Buy" rating for China Nuclear Power (601985) [1] Core Insights - The focus remains on nuclear power, with net profit attributable to the parent company increasing by 3% year-on-year [7] - For the first three quarters of 2025, the company achieved total revenue of 61.635 billion yuan, a year-on-year increase of 8.16%, while net profit attributable to the parent company decreased by 10.42% [7] - The report highlights that revenue from new energy increased by 21.09%, but net profit declined by 67.96% due to factors such as market dilution from previous REITs and capital increases [7] - Nuclear power revenue grew by 5.56%, with net profit attributable to the parent company increasing by 2.81% despite rising costs [7] Financial Performance Summary - The company forecasts total revenue for 2023 at 74.957 billion yuan, with a projected growth rate of 5.15% [1] - The net profit attributable to the parent company is expected to be 10.624 billion yuan in 2023, reflecting a year-on-year growth of 17.91% [1] - The report projects earnings per share (EPS) to be 0.52 yuan for 2023, with a price-to-earnings (P/E) ratio of 18.41 [1] - For 2025, the forecasted net profit attributable to the parent company is 10.044 billion yuan, with a P/E ratio of 19.47 [1] Operational Highlights - The company’s cash flow from operating activities for the first three quarters of 2025 was 30.266 billion yuan, a decrease of 7.85% year-on-year [7] - The installed capacity of renewable energy increased by 38.67% year-on-year, with wind power and solar power capacities growing by 33.97% and 40.93%, respectively [7] - The report notes that the company plans to commission 1, 2, and 4 nuclear power units in 2025, 2026, and 2027, respectively, entering an accelerated production phase [7]

Core Insights - The overall performance of the dividend style sector has been poor from early 2025 to October 28, 2025, while electricity demand has maintained steady growth, with a total electricity consumption of 7.77 trillion kilowatt-hours, representing a year-on-year increase of 4.8% [2][3] - During the 14th Five-Year Plan period, a "wide electricity volume, tight electricity supply" pattern is expected, with comprehensive electricity prices likely to stabilize [2][3] Electricity Sector - Coal prices have bottomed out and are expected to stabilize electricity prices; from the end of 2023 to mid-2025, coal prices have been declining, but began to rebound in July 2025, with the average clearing price in Jiangsu's electricity market reaching 395.60 yuan per megawatt-hour, an increase of 82.80 yuan per megawatt-hour month-on-month [3] - Hydropower remains stable with long-term investment value in a low-interest-rate environment; the net interest margin for hydropower has expanded by 69 basis points compared to the previous year [3] - Nuclear power's marketization ratio is gradually increasing, with a marketable electricity volume cap of 31.2 billion kilowatt-hours in 2026, a 14.3% increase from 2025; fluctuations in natural uranium prices have a minimal impact on operators [3] - Green electricity policies have seen uncertainty resolved, with market reforms entering a deeper phase; the wind power tax subsidy has decreased, indicating a policy bottom [4] Power Grid Equipment - The State Grid's investment in transmission and transformation equipment has seen significant growth, with a cumulative bidding amount of 68.188 billion yuan from January to September 2025, a year-on-year increase of 22.9% [6] - The export of primary equipment has also maintained high growth, with liquid medium transformers, high-voltage switches, and energy meters showing significant year-on-year increases in export amounts [6] Investment Opportunities - Beneficial stocks include: - Thermal Power: Huaneng International, Huadian International, China Resources Power, Datang Power, and others [7] - Hydropower: Yangtze Power, Huaneng Hydropower, and others [7] - Nuclear Power: China National Nuclear Power, China General Nuclear Power, and others [7] - Green Power: Longyuan Power, China Power, and others [7] - Power Grid Equipment: Pinggao Electric, XJ Electric, and others [7]

Investment Rating - The report assigns a "Buy" rating for several key companies in the public utility sector, including China Resources Power, Guodian Power, and Inner Mongolia Huadian [28]. Core Insights - The public utility sector is crucial for achieving national "dual carbon" goals, with a strong emphasis on environmental and social issues in the ESG evaluation framework [5][4]. - The ESG evaluation system for public utilities includes four categories of positive indicators and one category of negative indicators, focusing on objective assessment metrics [8][23]. - Recent policies from various government departments emphasize the need for green transformation, pollution prevention, and social welfare in the public utility sector [5][4]. Summary by Sections 1. ESG Policy in Public Utilities - The public utility sector is a major contributor to energy consumption and carbon emissions, making its green transformation essential for national goals [5]. - Key policies include the "14th Five-Year" energy conservation and emission reduction plan, which outlines specific requirements for green transformation and public service stability [5][4]. 2. ESG Evaluation System Construction - The ESG evaluation system consists of four positive categories: General Indicators, Environmental Indicators, Social Indicators, and Governance Indicators, with a total of 18 primary indicators and 35 secondary indicators [8][23]. - The negative category focuses on violations and penalties, with specific metrics for environmental, social, and governance aspects [23]. 3. General Indicators - General indicators assess the authenticity and standardization of ESG reports, including the basis for report preparation, third-party verification, and the publication of ESG-specific reports [10][9]. 4. Environmental Indicators - Environmental indicators are based on energy conservation, low carbon, and circular economy principles, with a total of four primary indicators focusing on emissions management, ecological compliance, resource utilization, and climate strategy [11][12]. 5. Social Indicators - Social indicators highlight the public utility sector's role in community development and social stability, with six primary indicators covering community contributions, employee development, innovation, supply chain responsibility, product safety, and core operational responsibilities [15][16][17]. 6. Governance Indicators - Governance indicators aim to enhance corporate governance and decision-making, with five primary indicators focusing on party leadership, industry reform, compliance risk management, governance structure, and information transparency [19][20][21]. 7. Negative Indicators - The negative indicators focus on compliance issues, with penalties for violations in environmental, social, and governance areas, deducting points for each violation [23][25].

Investment Rating - The report maintains a positive outlook on the public utility sector's central enterprises with a focus on the ESG evaluation system [1]. Core Insights - The establishment of the ESG evaluation system for public utilities is based on a balanced emphasis on environmental and social issues, crucial for achieving national carbon neutrality goals [3][9]. - The evaluation system consists of four categories of positive indicators and one category of negative indicators, with a total of 18 primary indicators and 35 secondary indicators [12][28]. - Key policies guiding the sector include promoting renewable energy, enhancing energy efficiency, and ensuring equitable public services [9][11]. Summary by Sections 1. ESG Policy: Balancing Environmental and Social Issues - The public utility sector is a major contributor to energy consumption and carbon emissions, making its green transition vital for national carbon goals [3][9]. - Recent policies emphasize the development of clean energy and pollution control, with specific directives from various government bodies [9][11]. 2. Constructing the ESG Evaluation System: Multi-Dimensional Assessment - The ESG evaluation system is structured with four positive categories: General Indicators, Environmental Indicators, Social Indicators, and Governance Indicators, along with one negative category for violations [12][28]. - Each category has specific indicators designed to objectively assess the performance of enterprises in the public utility sector [12][28]. 3. General Indicators - General indicators assess the authenticity and standardization of ESG reports, including the basis for report preparation, third-party verification, and the publication of ESG-specific reports [12][14]. 4. Environmental Indicators - Environmental indicators focus on energy efficiency and circular economy principles, with metrics for emissions management, ecological compliance, resource utilization, and climate strategy [15][17]. 5. Social Indicators - Social indicators highlight the sector's role in public service, with metrics for community contributions, employee development, innovation, supply chain responsibility, and customer rights [19][21]. 6. Governance Indicators - Governance indicators aim to enhance corporate governance standards, focusing on party leadership, industry reform, compliance risk management, governance structure, and information transparency [23][26]. 7. Negative Indicators - The negative category includes penalties for violations, with specific metrics for environmental, social, and governance infractions, where each violation results in a deduction of points [28][31]. 8. Valuation of Key Companies - The report includes a valuation table for key companies in the public utility sector, indicating ratings and projected earnings per share (EPS) for the years 2025 to 2027 [34].

Core Viewpoint - China Nuclear Power Co., Ltd. (China Nuclear Power) reported steady growth in its Q3 2025 results, achieving operating revenue of 61.635 billion yuan and a net profit of 8.002 billion yuan despite a challenging market environment [1] Group 1: Financial Performance - In the first three quarters of 2025, China Nuclear Power achieved an operating revenue of 61.635 billion yuan and a net profit attributable to shareholders of 8.002 billion yuan [1] - The total power generation from controlled nuclear power units reached 151.008 billion kWh, representing a year-on-year increase of 11.33% [1] - The cumulative on-grid electricity volume was 141.283 billion kWh, with a year-on-year growth of 11.44%, indicating steady improvement in power generation efficiency [1] Group 2: Operational Efficiency - The company has effectively managed challenges such as periodic unit maintenance, ensuring that nuclear power units quickly return to full-load operation after planned maintenance [1] - Key equipment operation and maintenance levels have continuously improved, with core power station operational efficiency remaining among the industry's best [1] Group 3: Project Development - Ongoing projects are progressing steadily, with the construction of the nuclear island for the Zhejiang Jin Qimen Nuclear Power Unit 1 fully underway [2] - The Zhangzhou Nuclear Power Unit 2 has successfully entered the fuel loading and testing phase, expected to commence operations in Q4 2025, providing substantial support for future performance growth [1] Group 4: Renewable Energy Initiatives - The company is actively expanding its footprint in the renewable energy sector, particularly in solar and wind power, to support the achievement of carbon neutrality goals [2] - In the first three quarters, the cumulative power generation from controlled renewable energy units reached 33.356 billion kWh, with a year-on-year increase of 34.77% [2] - The cumulative on-grid electricity from renewable sources was 32.812 billion kWh, reflecting a year-on-year growth of 34.82% [2] Group 5: Strategic Investments - In July, China Nuclear Power participated in the capital increase of China Fusion Energy Co., Ltd., investing 1 billion yuan for a 6.65% stake, contributing to a total capital injection of approximately 11.5 billion yuan [2] - This investment aligns with the national nuclear energy development strategy and positions the company to capture future energy technology advancements, laying the foundation for long-term stable economic returns [2]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company aims to promote a new phase of REITs issuance, expecting new units to contribute to incremental growth [1] - The company reported a total revenue of 61.635 billion yuan for the first three quarters of 2025, representing an 8.16% year-on-year increase, while the net profit attributable to the parent company was 8.002 billion yuan, down 10.42% year-on-year [6] - The company has a significant number of nuclear power units under construction, with 19 units and a capacity of 21.859 million kilowatts, which is 87% of the operational capacity [6] Financial Data and Earnings Forecast - Total revenue forecast for 2025 is 87.532 billion yuan, with a year-on-year growth rate of 13.3% [5] - The net profit attributable to the parent company is projected to be 10.041 billion yuan in 2025, reflecting a 14.4% year-on-year increase [5] - Earnings per share (EPS) is expected to be 0.49 yuan in 2025, with a price-to-earnings (PE) ratio of 19 [5] - The company’s gross profit margin is forecasted to be 41.5% in 2025 [5] Operational Highlights - The company has 26 operational nuclear units with a total installed capacity of 25 million kilowatts, achieving a power generation of 151.008 billion kilowatt-hours in the first nine months of 2025, up 11.33% year-on-year [6] - The company plans to issue approximately 2.536 billion yuan in REITs to enhance the liquidity of its renewable energy assets [6] - The company’s renewable energy segment saw a significant increase in power generation, with a total of 33.356 billion kilowatt-hours, up 34.77% year-on-year [6]

Core Insights - The report indicates that the electricity industry is expected to stabilize as the power supply-demand structure shifts to a "wide electricity volume, tight power" scenario during the 14th Five-Year Plan period [3][28] - The overall performance of the dividend style sector has been poor, with electricity demand showing steady growth [3][12] Industry Review - The dividend style sector has underperformed, with the public utility sector and electricity industry lagging behind the CSI 300 index [12] - From Q1 to Q3 of 2025, China's total electricity consumption reached 7.77 trillion kWh, a year-on-year increase of 4.8% [3][18] - The supply-demand structure is expected to remain tight, with comprehensive electricity prices likely to stabilize [28] Electricity Sector - Coal prices have bottomed out and are expected to stabilize electricity prices; from July 2025, coal prices began to rebound, with the Jiangsu electricity market clearing price reaching 395.60 yuan/MWh, an increase of 82.80 yuan/MWh [4][42] - Hydropower remains stable with long-term investment value in a low-interest-rate environment; the net interest margin for hydropower has widened by 69 basis points compared to the previous year [4] - Nuclear power's marketization ratio is gradually increasing, with minimal impact from fluctuations in natural uranium prices [4] - Green electricity policies are becoming clearer, with market reforms entering a deeper phase [5] Grid Equipment - Investment in domestic grid equipment has shown a significant increase, with cumulative bidding amounts reaching 681.88 billion yuan, a year-on-year increase of 22.9% [6] - The export value of primary equipment has also maintained high growth, with liquid medium transformers and high-voltage switches seeing substantial increases [6] Beneficiary Targets - Beneficiary stocks include: - Thermal Power: Huaneng International, Huadian International, China Resources Power, Datang Power, and others [7] - Hydropower: Yangtze Power, Huaneng Hydropower, and others [7] - Nuclear Power: China National Nuclear Power, China General Nuclear Power, and others [7] - Green Power: Longyuan Power, China Power, and others [7] - Grid Equipment: Pinggao Electric, XJ Electric, and others [7]