Investment Rating - The report maintains a positive outlook on the power and gas sectors, indicating a favorable investment environment due to policy improvements and market dynamics [1]. Core Insights - The report highlights the recent improvements in the capacity pricing mechanism for power generation, which aims to stabilize revenue and enhance the profitability of various power sources [6][10]. - It notes a slight increase in natural gas consumption in 2025, with a projected growth of 0.1% year-on-year, indicating a stable demand outlook for the gas sector [32]. Summary by Sections 1. Power Sector: Capacity Pricing Mechanism Improvement - The National Development and Reform Commission and the National Energy Administration have issued a notification to enhance the capacity pricing mechanism for power generation, addressing mismatches in supply and demand within the new energy system [6]. - The new mechanism introduces differentiated pricing for various types of regulatory power sources, ensuring that their capacity value is adequately compensated [7]. - A unified compensation standard for peak capacity across different power sources is established, promoting rational investment and resource allocation in the power sector [8][10]. 2. Gas Sector: Continued Growth in Natural Gas Consumption - Natural gas consumption in China is expected to reach 385.7 billion cubic meters by December 2025, reflecting a year-on-year increase of 1.9% [32]. - The report emphasizes the impact of cold weather on gas prices, with global prices remaining high, particularly in the U.S. and Europe, which supports the profitability of gas companies [13][19]. - The report suggests that the gas sector will benefit from a combination of lower costs and improved demand, particularly for city gas companies, with recommendations for several key players in the market [34]. 3. Weekly Market Review - The report notes that the public utility, power, gas, and environmental sectors underperformed relative to the Shanghai and Shenzhen 300 index during the week of January 24 to January 30, 2026 [36]. 4. Company and Industry Dynamics - As of the end of 2025, the total installed power generation capacity in China reached 3.89 billion kilowatts, a year-on-year increase of 16.1%, with significant growth in solar and wind power installations [43]. - The report includes various company announcements, highlighting performance forecasts and operational updates from key players in the energy sector [44].

Investment Rating - The report maintains a positive outlook on the power and gas sectors, indicating a favorable investment environment for renewable energy and gas companies [2][3]. Core Insights - The report highlights a slight increase in overall power generation in 2025, primarily driven by wind and solar energy contributions, while traditional coal power generation shows a decline [8][9]. - The extreme cold weather in the U.S. has led to a significant spike in natural gas prices due to increased demand and supply constraints [18][22]. - The report suggests various investment opportunities across different segments of the energy sector, including coal power, hydropower, nuclear power, renewable energy, and gas companies [18][43]. Summary by Sections 1. Power Generation - In December 2025, total power generation was 858.6 billion kWh, a year-on-year increase of 0.1%. Coal power generation decreased by 3.2%, while renewable sources like wind and solar saw significant growth [10][11]. - For the entire year of 2025, total power generation reached 9715.9 billion kWh, up 2.2% from the previous year, with coal power down by 1.0% and solar power up by 24.4% [15][19]. 2. Natural Gas - As of January 23, 2026, the Henry Hub spot price surged to $30.72/mmBtu, reflecting a week-on-week increase of 903.53%. European gas prices also rose significantly due to low inventory levels and increased demand [20][28]. - The report notes that the extreme cold weather has tightened supply and demand dynamics, leading to higher global gas prices, particularly in Europe and Northeast Asia [22][37]. 3. Investment Recommendations - For coal power, companies like Guodian Power and Inner Mongolia Huadian are recommended due to their integrated coal and power operations [18]. - Hydropower companies such as Yangtze Power and State Power Investment Corporation are favored due to favorable conditions for energy storage and reduced capital expenditures [19]. - Nuclear power companies like China National Nuclear Power and China General Nuclear Power are highlighted for their stable cost structures and growth potential [18]. - Renewable energy operators such as Xinte Energy and Longyuan Power are recommended as new market rules enhance the stability of returns [18]. - Gas companies like Kunlun Energy and New Hope Liuhe are suggested for their potential recovery in profitability due to cost reductions and improved pricing mechanisms [43].

Core Insights - Green ammonia is a zero-carbon ammonia product synthesized from renewable energy-driven green hydrogen, reducing emissions by approximately 95% compared to gray ammonia [1][3] - The green ammonia industry in China is supported by multiple policies, particularly promoting its application in inland shipping, indicating significant growth potential [1][6] - The industry structure consists of three layers: upstream supply, midstream conversion, and downstream demand, with a focus on cost reduction and technological integration for future development [1][6] Industry Overview - Ammonia (NH3) is a key raw material for nitrogen fertilizers and is widely used in various industrial applications, making it an essential chemical in the industrial system [2] - Green ammonia is produced through renewable energy sources, with a lifecycle carbon emission intensity of less than 0.8 tons CO₂ equivalent per ton of ammonia, distinguishing it from gray and blue ammonia [3][4] Policy Background - China has implemented several policies to support the development of green ammonia, including plans for renewable energy development and low-carbon transformation of coal power [6] - The promotion of green ammonia in inland shipping is expected to open new commercial application spaces, facilitating the transition from demonstration projects to large-scale applications [6] Industry Chain Structure - The green ammonia industry chain in China is structured into upstream supply (renewable energy generation and equipment manufacturing), midstream conversion (green hydrogen production and ammonia synthesis), and downstream demand (agricultural fertilizers and energy applications) [6][9] - Upstream challenges include the volatility of renewable energy output and reliance on imported components for PEM electrolyzers [8] Current Development Status - China's synthetic ammonia industry is mature, with a production capacity of 5,954.2 million tons expected to reach 8,247 million tons by 2025, with green ammonia becoming a core growth driver [10] - As of 2025, 125 green ammonia projects are planned, with a total capacity exceeding 2,335.72 million tons per year, marking a shift towards small-scale commercial demonstration [10] Company Landscape - The green ammonia industry in China features a diverse competitive landscape, with state-owned enterprises leading large-scale projects and private companies focusing on technology and system integration [11] - Key players include China Energy Engineering, Sinopec, and Longi Green Energy, with regional production bases in the northwest and transportation hubs in the southeast [11] Future Development Trends - The green ammonia industry is expected to focus on technological innovation for cost reduction and efficiency, with an emphasis on upgrading electrolyzer technology and optimizing synthesis processes [12] - There will be a trend towards vertical integration of the industry chain, enhancing collaboration between renewable energy and chemical sectors [12] - Application scenarios will expand from green fertilizers to energy sectors, driven by policy support and market demand, facilitating the transition from demonstration to large-scale commercialization [13]

Core Viewpoint - The company held a meeting to summarize the achievements of engineering construction in 2025 and set tasks for 2026, emphasizing safety, quality, and innovation in project management [1][4]. Group 1: Achievements in 2025 - The engineering sector achieved "zero accidents" in safety and "zero incidents" in quality, with significant projects in thermal power, environmental protection, and renewable energy reaching high-quality production [4]. - A total of 96 construction projects were advanced, with a total construction scale reaching 10.61 million kilowatts, marking a historical high [4]. Group 2: Goals for 2026 - The company outlined six key requirements for 2026, focusing on responsibility, quality, project scheduling, cost management, innovation, and talent development [2][3][5][6]. Group 3: Specific Requirements - Emphasize responsibility and risk management to ensure "inherent safety" by implementing safety reviews as prerequisites for new projects and establishing a dynamic risk management mechanism [2][5]. - Focus on quality control and standardization to create benchmark projects, including the development of quantitative quality assessment criteria for renewable energy projects [2][5]. - Implement precise scheduling and targeted efforts to ensure orderly project advancement, with strict monitoring of major project plans and key milestones [2][5]. - Enhance cost management and optimization throughout the project lifecycle, including the establishment of a smart cost management platform [2][5]. - Strengthen innovation and digital capabilities by investing in key technologies and promoting the application of digital management platforms [3][6]. - Build a skilled engineering workforce through a comprehensive training system and an incentive mechanism based on project performance [3][6].

Investment Rating - The report maintains a positive outlook on the power and gas sectors, recommending various companies within these industries for investment opportunities [1]. Core Insights - The report highlights that China's total electricity consumption is projected to exceed 10 trillion kWh in 2025, reaching 10.4 trillion kWh, with a year-on-year growth of 5% [7][8]. - The growth in electricity consumption is driven primarily by the secondary and tertiary industries, which together contribute nearly 80% of the total increase in electricity demand [8]. - The report notes significant growth in electricity consumption from high-end manufacturing, digital economy, and new infrastructure projects, such as charging stations and 5G base stations, which are expected to see growth rates exceeding 30% [8]. Summary by Sections 1. Electricity Sector - In 2025, the total electricity consumption is expected to reach 10.4 trillion kWh, with a 5% year-on-year increase. The first, second, and third industries, along with urban and rural residential electricity consumption, are projected to grow by 9.9%, 3.7%, 8.2%, and 6.3% respectively [7][9]. - The second industry remains the largest consumer of electricity, contributing 48% to the growth, while the third industry contributes 31% [9][13]. - The report recommends investments in coal-fired power companies like Guodian Power and Inner Mongolia Huadian, as well as large hydropower companies such as Yangtze Power and State Power Investment [15][16]. 2. Gas Sector - The report indicates that colder temperatures are expected to increase heating demand, leading to a rebound in gas prices across Europe and Asia. As of January 16, the Henry Hub spot price was $3.06/mmBtu, with a weekly increase of 6.77% [17][24]. - The report highlights that European gas prices have surged due to low inventory levels and increased heating demand, with the TTF spot price reaching €38.10/MWh, up 31.38% week-on-week [17][24]. - Recommendations include investing in integrated gas companies like Kunlun Energy and New Hope Energy, as well as gas trading companies like New Hope and New Energy [38]. 3. Market Performance - The report notes that the public utility, power, and environmental sectors outperformed the Shanghai and Shenzhen 300 index during the week of January 12 to January 16, 2026 [40]. 4. Company and Industry Dynamics - Recent initiatives in various provinces aim to enhance green energy and environmental standards, including the establishment of green mining standards in Guangxi and guidelines for industrial microgrid construction [46][47]. - The report also mentions significant corporate announcements, including mergers and acquisitions in the energy sector, which may impact market dynamics [50].

Core Viewpoint - Shenzhen Energy's stock price has shown a positive trend with a year-to-date increase of 5.52%, reflecting a stable performance in the energy sector [1]. Group 1: Stock Performance - On January 14, Shenzhen Energy's stock rose by 2.08%, reaching 6.88 CNY per share, with a trading volume of 281 million CNY and a turnover rate of 0.87%, resulting in a total market capitalization of 32.731 billion CNY [1]. - The stock has experienced a 4.08% increase over the last five trading days, a 3.46% increase over the last 20 days, and a 1.47% increase over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, Shenzhen Energy reported an operating revenue of 32.44 billion CNY, representing a year-on-year growth of 6.66%. However, the net profit attributable to shareholders decreased by 7.58% to 1.964 billion CNY [2]. Group 3: Business Overview - Shenzhen Energy, established on August 21, 1993, and listed on September 3, 1993, is primarily engaged in the development, production, and trading of conventional and renewable energy, as well as urban solid waste treatment, wastewater treatment, and urban gas supply [1]. - The company's main business revenue composition includes: power generation from gas (26.76%), coal (21.32%), ecological environmental protection (18.52%), comprehensive gas (13.65%), wind power (8.70%), and other sources [1]. Group 4: Shareholder Information - As of January 9, 2025, Shenzhen Energy had 116,500 shareholders, a decrease of 0.56% from the previous period, with an average of 40,834 circulating shares per shareholder, which increased by 0.56% [2]. - The company has distributed a total of 12.497 billion CNY in dividends since its A-share listing, with 2.046 billion CNY distributed in the last three years [3].

Core Viewpoint - Shenzhen Energy is focused on enhancing its competitiveness and profitability through its four main business segments: low-carbon electricity, ecological environment protection, integrated gas, and smart services [1] Group 1 - Shenzhen Energy responded to investor inquiries on its interactive platform regarding the cultivation of billion-dollar enterprises in Shenzhen, indicating that it is currently unaware of any related cultivation list [1] - The company aims to create stable and sustainable returns for its shareholders by continuously improving its business capabilities [1]

Core Viewpoint - Shenzhen Energy emphasizes that fuel costs are the primary expense for thermal power plants, highlighting the importance of comparing imported coal and natural gas with domestic fuel options for economic efficiency [2]. Group 1: Fuel Cost Analysis - Fuel costs are identified as the main cost component for thermal power generation [2]. - The company states that the procurement of imported coal and natural gas involves considering exchange rates as one of several factors in assessing fuel economic viability [2]. - A comprehensive comparison with domestic fuels of similar quality is necessary for making procurement decisions [2].

Investment Rating - The report rates the gaming industry as "high" for investment [1] Core Views - The report emphasizes the importance of the "Solid Waste Comprehensive Treatment Action Plan," which aims for significant improvements in solid waste management by 2030, including a target of 4.5 billion tons of comprehensive utilization of major solid waste and 510 million tons of recycling of key resources [2][5][7] - It highlights the shift in the energy sector towards diversified revenue models for thermal power companies, recommending several key players in the industry [8] - The report discusses the current trends in natural gas pricing, noting a general decline in global gas prices due to mild weather conditions and stable supply [10][29] - It outlines the transition of hydrogen energy towards becoming a "regulator" of the power grid, emphasizing its role in energy storage and management [31][33] Summary by Sections 1. Environmental Protection - The "Solid Waste Comprehensive Treatment Action Plan" was released on January 4, aiming to enhance solid waste management and promote a green economy [5] - By 2030, the plan targets a comprehensive utilization of 4.5 billion tons of major solid waste and 510 million tons of recycling of key resources [2][6] - The focus is on industrial, urban, and agricultural waste, with a comprehensive governance approach to illegal dumping and construction waste [6][7] 2. Natural Gas - As of January 9, the Henry Hub spot price in the U.S. was $2.87/mmBtu, reflecting a weekly decline of 28.24% [10][11] - The report notes that the European gas prices have also decreased, with the TTF spot price at €29.00/MWh, down 1.43% week-on-week [10][16] - The overall gas market is characterized by stable supply and mild weather, leading to lower demand and prices [10][29] 3. Hydrogen Energy - The report discusses the integration of hydrogen energy into the power grid, highlighting its potential for large-scale energy storage and management [31] - It emphasizes the role of hydrogen in addressing renewable energy challenges and improving grid stability [31][33] - The report recommends companies involved in hydrogen production and technology as key investment opportunities [33] 4. Weekly Market Review - The report notes that the electric power equipment, gas, and environmental protection sectors outperformed the Shanghai and Shenzhen 300 index during the week of January 5 to January 9 [34] - It provides insights into the performance of various sectors, indicating a positive trend for certain energy and environmental stocks [36][39] 5. Company and Industry Dynamics - The report highlights the establishment of national zero-carbon parks, which will receive significant support for green energy initiatives [39] - It mentions the successful completion of green power transactions in Gansu, indicating a growing market for renewable energy [40][43] - The report includes updates on major companies' performance and strategic developments in the energy sector [44]

Investment Rating - The report maintains a positive outlook on the industry, indicating a "Look Favorably" investment rating [1]. Core Insights - The report highlights the release of the "Comprehensive Solid Waste Management Action Plan," which aims to enhance solid waste management and promote a circular economy by 2030, targeting a comprehensive utilization of 4.5 billion tons of major solid waste and 510 million tons of recyclable resources annually [2][6][8]. - Global natural gas prices have generally declined, influenced by mild weather conditions, with significant drops in prices across various markets, including a 28.24% decrease in the US Henry Hub spot price [11][12][18]. - The hydrogen energy sector is evolving towards becoming a key regulator in the power grid, with initiatives to integrate clean hydrogen production and utilization into microgrid systems, enhancing energy storage capabilities [35][37]. Summary by Sections 1. Environmental Protection - The "Comprehensive Solid Waste Management Action Plan" aims for significant improvements in solid waste management by 2030, with specific targets for waste recycling and resource utilization [2][6]. - The plan emphasizes the need for a circular economy that does not rely on subsidies, focusing on industrial collaboration and technological innovation to create a sustainable waste management system [7][8]. 2. Natural Gas - Natural gas prices have seen a significant decline, with the US Henry Hub spot price at $2.87/mmBtu, reflecting a 28.24% week-over-week drop [11][12]. - The report notes that the demand for natural gas is expected to remain weak in Northeast Asia, contributing to a slight decrease in LNG prices [11][30]. - Recommendations include focusing on integrated natural gas companies that are expected to benefit from cost reductions and improved profitability [32]. 3. Hydrogen Energy - The report discusses the strategic positioning of hydrogen energy as a flexible load regulator within the power grid, highlighting its potential to enhance energy storage and consumption efficiency [35][37]. - It emphasizes the importance of hydrogen energy in achieving energy security and autonomy, recommending companies involved in hydrogen production [35][37]. 4. Weekly Market Review - The report indicates that the electricity equipment, gas, and environmental protection sectors outperformed the Shanghai and Shenzhen 300 index during the review period [38]. 5. Company and Industry Dynamics - The report outlines significant developments in the renewable energy sector, including the establishment of national zero-carbon parks and the increase in green electricity trading volumes, which are expected to enhance market opportunities for leading companies in the sector [44][48].