Core Viewpoint - China General Nuclear Power Group (CGN) is actively expanding its offshore clean energy applications, focusing on the integration of marine ecological protection and sustainable development [1][2] Group 1: Offshore Clean Energy Projects - CGN has developed nearly 20 offshore wind and solar projects with a total installed capacity of 4.74 million kilowatts, expected to generate 14.8 billion kilowatt-hours annually, sufficient to meet the annual electricity needs of over 8 million households [1] - The company has established over 50 integrated development projects across water, offshore, and land [2] Group 2: Innovative Development Models - CGN is exploring a diversified sustainable development model combining "blue energy + offshore farming," exemplified by the Laizhou 304 MW offshore wind project, which integrates wind turbine foundations with aquaculture facilities [1] - This project aims to create a symbiotic relationship between energy generation and marine resource cultivation, promoting a sustainable development path of "using fish to promote electricity and using electricity to support fish" [1] Group 3: Marine Biodiversity Protection - The French Green Ocean Research Institute released the "CGN Marine Biodiversity Protection White Paper," highlighting CGN's practices in achieving synergy between offshore clean energy development and marine ecological protection [2] - CGN has established a comprehensive ecological monitoring and assessment system around its nuclear power bases, promoting a long-term mechanism for marine biodiversity protection [2] - Over 200 species of flora and fauna thrive in the marine areas surrounding the Daya Bay nuclear power base, including 15 species of nationally protected coral, supported by the establishment of coral conservation zones [2]

Investment Rating - The report maintains an "Outperform" rating for the public utility and environmental sectors [1][5][7]. Core Views - The report highlights the ongoing pilot projects for hydrogen energy initiated by the National Energy Administration, focusing on large-scale hydrogen production integrated with renewable energy sources [2][14]. - The waste incineration industry is entering a mature phase, with a significant increase in cash flow for listed companies, indicating a positive trend in financial health [15][22]. - The report emphasizes the importance of carbon neutrality, recommending investments in the new energy industry chain and comprehensive energy management [25][26]. Summary by Sections Market Review - The Shanghai Composite Index fell by 0.25%, while the public utility index rose by 0.26%, and the environmental index dropped by 1.19% [1][13]. - Among the 31 primary industry sectors, public utilities and environmental sectors ranked 10th and 22nd in terms of performance [1][27]. Important Events - The National Energy Administration has launched pilot projects in the hydrogen energy sector, focusing on large-scale hydrogen production in areas rich in wind, solar, hydro, nuclear, and biomass resources [2][14]. Specialized Research - The report analyzes the free cash flow of 15 major A-share listed companies in the waste incineration sector, noting that many have achieved positive cash flow by 2024 [15][22]. Investment Strategy - Recommendations include major thermal power companies like Huadian International and regional power companies like Shanghai Electric due to stable profitability [3][25]. - The report suggests investing in leading new energy companies such as Longyuan Power and Three Gorges Energy, as well as high-dividend hydroelectric stocks like Yangtze Power [3][25]. - In the environmental sector, it recommends companies like China Science Instruments and Shandong High Energy Environmental for their growth potential [26]. Company Profit Forecasts and Investment Ratings - A detailed table lists various companies with their investment ratings, market capitalization, earnings per share (EPS), and price-to-earnings (PE) ratios, indicating a generally positive outlook for the sector [7][23].

Investment Rating - The report maintains an "Outperform" rating for the public utility and environmental sectors [1][5][7]. Core Views - The report highlights the ongoing pilot projects for hydrogen energy initiated by the National Energy Administration, focusing on large-scale hydrogen production integrated with renewable energy sources [2][14]. - The waste incineration industry is entering a mature phase, with a significant increase in cash flow for listed companies, indicating a positive trend in financial health [15][22]. - The report emphasizes the importance of carbon neutrality, recommending investments in the new energy industry chain and comprehensive energy management [25][26]. Summary by Sections Market Review - The Shanghai Composite Index fell by 0.25%, while the public utility index rose by 0.26%, and the environmental index dropped by 1.19% [1][13]. - Among the 31 first-level industry classifications, public utilities and environmental sectors ranked 10th and 22nd in terms of growth [1][27]. Important Events - The National Energy Administration has launched pilot projects in the hydrogen energy sector, focusing on large-scale hydrogen production in areas rich in wind, solar, hydro, nuclear, and biomass resources [2][14]. Specialized Research - The report analyzes the free cash flow of 15 major A-share listed companies in the waste incineration sector, noting that many have achieved positive cash flow by 2024 [15][22]. Investment Strategy - Recommendations include major thermal power companies like Huadian International and regional power companies like Shanghai Electric due to stable profitability [3][25]. - The report suggests investing in leading new energy companies such as Longyuan Power and Three Gorges Energy, as well as high-dividend hydroelectric stocks like Yangtze Power [3][25]. - In the environmental sector, it recommends companies like China Science Instruments and Shandong High Energy for their growth potential [26]. Company Profit Forecasts and Investment Ratings - A detailed table lists various companies with their investment ratings, market capitalization, earnings per share (EPS), and price-to-earnings (PE) ratios, indicating a generally positive outlook for the sector [7][23].

Investment Rating - The report maintains a positive investment rating for the power and utilities sector, with specific recommendations for companies such as Funiu Co., Ltd. and Shenneng Co., Ltd. [3][21] Core Insights - The power sector outperformed the broader market, with the utilities sector index closing at 2382.43 points, up 0.26%, and the electricity sub-sector index at 3173.29 points, down 0.25% [1][9] - The commissioning of the Hami-Chongqing ±800 kV UHVDC project significantly enhances power supply capabilities in Chongqing, providing approximately 36 billion kWh annually, which accounts for about 20% of the city's annual electricity demand [2][24] - The establishment of the world's first offshore wind-powered data center in Shanghai aims to support AI and 5G computing needs while promoting low-carbon energy solutions [2][32] Summary by Sections Weekly Market Review - The electricity sector showed resilience with a slight decline in the electricity sub-sector, while thermal power benefited from falling coal prices, leading to improved performance expectations [1][20] - The report highlights the performance of various electricity sub-sectors, noting a decline in photovoltaic generation by 1.79% and an increase in hydropower generation by 1.03% [1][14] Industry Data Tracking - The report tracks coal prices, which have seen a slight decrease, indicating a favorable environment for thermal power generation [35] - The report also provides insights into the performance of renewable energy sources, with significant growth in wind and solar installations in Xinjiang, which now account for over 54% of the total installed capacity [25][26] Investment Recommendations - The report recommends focusing on companies with stable earnings and growth potential, particularly in thermal power and hydropower sectors, while also highlighting opportunities in renewable energy and data center integration [3][21] - Specific companies recommended include Funiu Co., Ltd., Shenneng Co., Ltd., and China Nuclear Power, with cautious recommendations for China General Nuclear Power [3][22]

Core Viewpoint - China General Nuclear Power Group (CGN) actively promotes the integration of clean energy development and marine ecological protection, showcasing its commitment to sustainable marine development at the UN Ocean Conference in Nice, France [1][4]. Group 1: Clean Energy Initiatives - CGN has developed a total installed capacity of 4.74 million kilowatts in offshore clean energy, including nearly 20 offshore wind and solar projects, with an expected annual power generation of 14.8 billion kilowatt-hours, sufficient to meet the annual electricity needs of over 8 million households [2]. - The company has innovatively integrated offshore wind power with marine ranching, exemplified by the Laizhou 304MW offshore wind project, which promotes a symbiotic model of "blue energy + offshore grain warehouse" [2][3]. - CGN's offshore wind and marine ranching projects, such as the "Fuxi No. 1" platform in Guangdong, are designed to withstand typhoons and are expected to generate an annual output value of 54 million yuan [2]. Group 2: Marine Biodiversity Protection - The release of the "CGN Marine Biodiversity Protection White Paper" during the conference highlights CGN's practices in balancing clean energy development with marine ecological protection [4]. - CGN has established a comprehensive ecological monitoring and assessment system around its nuclear power bases, ensuring the growth of over 200 species of marine flora and fauna, including 15 species of coral [5]. - The company advocates for a "nature-positive" approach, focusing on proactive restoration rather than merely reducing damage, and has implemented dual mangrove protection mechanisms at its facilities [5]. Group 3: Global Collaboration and Recognition - Experts from the Green Ocean Institute and other organizations have praised CGN's innovative approach to integrating marine energy with ecological health, suggesting that similar practices could yield significant economic benefits in other regions, such as France [6]. - The "Blue Guardianship, Coexisting Future" exhibition showcased CGN's achievements in marine ecological protection, attracting global attention and highlighting the company's role in fostering collaboration between the corporate and scientific communities [8].

Group 1 - The A-share market showed mixed performance with the China Securities Public Utilities Index down by 0.39% closing at 2494.68 points and a trading volume of 8.457 billion [1] - Over the past month, the China Securities Public Utilities Index has decreased by 0.01%, increased by 5.61% over the last three months, and has declined by 2.47% year-to-date [1] - The index is designed to reflect the overall performance of different industry companies within the China Securities 800 Index, categorized into 11 primary and 35 secondary industries [1] Group 2 - The top ten holdings in the China Securities Public Utilities Index include: Changjiang Electric Power (16.87%), China Nuclear Power (10.59%), and Three Gorges Energy (8.41%) among others [1] - The market composition of the index shows that 84.49% of the holdings are from the Shanghai Stock Exchange and 15.51% from the Shenzhen Stock Exchange [1] - The public utilities sector accounts for 100.00% of the index's holdings [2] Group 3 - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Weight factors are generally fixed until the next scheduled adjustment, but can change with temporary adjustments due to events affecting the index [2] - Special events such as delisting, mergers, or changes in industry classification will prompt corresponding adjustments to the index samples [2]

Investment Rating - The report maintains an "Outperform" rating for the public utility sector [1][5][7] Core Views - The report highlights the ongoing pilot projects for the new power system initiated by the National Energy Administration, focusing on innovative technologies and models [2][14] - It emphasizes the growth in exports of industrial-grade mixed oil (UCO) in April 2025, with a year-on-year increase of 7.46% in volume and a 21.01% increase in average price [3][15] - The report suggests that coal and electricity prices are declining simultaneously, which may help maintain reasonable profitability for thermal power [3][18] Summary by Sections Market Review - The Shanghai Composite Index rose by 0.88%, while the public utility index fell by 0.13% and the environmental index increased by 0.46% [1][19] - Within the electricity sector, thermal power decreased by 0.97%, hydropower by 1.47%, and new energy generation by 0.45% [1][19] Important Events - The National Energy Administration is conducting pilot projects for a new power system, focusing on advanced technologies and models [2][14] Special Research - In April 2025, China exported 228,148 tons of industrial-grade mixed oil (UCO), with an average export price of $1,069.34 per ton [3][15] Investment Strategy - Recommendations include major thermal power companies like Huadian International and Shanghai Electric, as well as leading new energy firms such as Longyuan Power and Three Gorges Energy [3][18] - The report also suggests focusing on water and waste incineration sectors, which are entering a mature phase with improved cash flow [3][18] Key Company Earnings Forecasts and Investment Ratings - Several companies are rated "Outperform," including Huadian International, Shanghai Electric, Longyuan Power, and China Nuclear Power [7][18] Industry Dynamics - The report notes that the overall electricity generation in April 2025 was 711.1 billion kWh, with a year-on-year growth of 0.9% [45] - The total installed power generation capacity reached 3.49 billion kW, a year-on-year increase of 15.9% [76]

Core Viewpoint - China's nuclear power construction has entered a new stage of large-scale development, with the approval of five new nuclear projects and a total of ten new units, maintaining a consistent pace of approving ten or more units annually for four consecutive years [1] Group 1: Nuclear Power Development - The scale of nuclear power under construction in China exceeds the total of all other countries combined [1] - The first phase of the Ningde Nuclear Power Plant has generated over 300 billion kilowatt-hours of electricity since its operation [2] - The four units of the first phase have achieved 41 WANO indicators at an advanced international level [2] Group 2: Safety and Environmental Integration - Safety is prioritized in nuclear power operations, with multiple physical barriers and defense systems in place [2] - Ningde Nuclear Power Plant is the only nuclear power station globally with a white tea garden, showcasing a model of harmonious coexistence between nature and industry [2] Group 3: Economic Impact - The construction of Ningde Nuclear Power has significantly boosted the local economy, with the village of Baiyang reporting a collective income exceeding 10 million yuan in 2022 [7] - The nuclear power economy has also stimulated local agriculture and tourism, with nearby villages benefiting from increased traffic and economic activity [8] Group 4: Future Developments - The second phase of Ningde Nuclear Power, set to begin construction in 2024, will include two additional units, each expected to generate nearly 10 billion kilowatt-hours annually [4] - The project will utilize advanced third-generation nuclear technology and focus on digital transformation to enhance efficiency and safety [5]

Investment Rating - The report maintains a "Recommended" rating for several companies including China Nuclear Power, Funiu Co., and Huaneng Hydropower, while providing a "Cautious Recommendation" for others like China General Nuclear Power and Longyuan Power [21][4]. Core Insights - The new power system pilot projects have been initiated by the National Energy Administration, focusing on seven key areas including grid technology and virtual power plants [3][37]. - Gansu's new energy installed capacity has surpassed 70 million kilowatts, with a year-on-year growth of 25.25%, solidifying its position in the energy sector [2][26]. - The electricity market is entering a peak usage season in June, with expectations for improved performance in thermal power due to low coal prices [19][3]. Summary by Sections Weekly Market Review - The electricity sector underperformed compared to the broader market, with the public utility sector index closing at 2376.19 points, down 0.14%, and the electricity sub-sector at 3165.47 points, down 0.34% [1][7]. - Among sub-sectors, photovoltaic power increased by 1.39%, while thermal and hydropower saw declines of 0.57% and 1.85%, respectively [13][1]. Gansu New Energy Update - As of the end of May 2025, Gansu's total installed capacity reached 70.62 million kilowatts, with wind and solar power each contributing over 32% to the total installed capacity [2][26]. - Gansu aims to reach 80 million kilowatts of installed capacity by the end of 2025, with a target of 160 million kilowatts by 2030 [2][26]. National Energy Administration Initiatives - The National Energy Administration has launched pilot projects focusing on innovative power system technologies, including smart microgrids and high-proportion renewable energy dispatch [3][37]. - The pilot projects aim to enhance grid stability and improve the integration of renewable energy sources [3][37]. Investment Recommendations - Companies to focus on include Huadian International, Jingtou Energy, and Funiu Co. for thermal power, and Changjiang Power and Chuan Investment Energy for hydropower [19][3]. - The report suggests monitoring companies involved in green electricity projects, as their returns are expected to be safeguarded under new regulations [19][3].

Investment Rating - The report maintains a "Recommended" rating for several companies including China Nuclear Power, Funiu Co., and Huaneng Water Power, while providing a "Cautious Recommendation" for others like China General Nuclear Power and Longyuan Power [21][19]. Core Insights - The new energy installed capacity in Gansu has surpassed 70 million kilowatts, solidifying its dominant position in the province's energy mix, with a year-on-year growth of 25.25% [2][26]. - The National Energy Administration has initiated the first batch of pilot projects for the new power system, focusing on seven key areas including grid technology and virtual power plants [3][37]. - The report suggests that with the onset of the peak electricity consumption season in June and low coal prices, the performance of thermal power companies is expected to improve [3][19]. Summary by Sections Weekly Market Review - The electricity sector underperformed compared to the broader market, with the public utility sector index closing at 2376.19 points, down 0.14%, and the electricity sub-sector at 3165.47 points, down 0.34% [1][7]. - Among the electricity sub-sectors, photovoltaic power increased by 1.39%, while thermal and hydropower decreased by 0.57% and 1.85% respectively [13][19]. Gansu New Energy Capacity - As of the end of May 2025, Gansu's cumulative installed capacity reached 70.6246 million kilowatts, with wind and solar power each contributing over 32% to the total installed capacity [2][26]. - Gansu aims to reach 80 million kilowatts of installed renewable energy capacity by the end of 2025, with a target of 160 million kilowatts by 2030 [2][26]. National Energy Administration Initiatives - The pilot projects will explore new technologies and models for the new power system, focusing on areas such as intelligent microgrids and high-proportion renewable energy delivery [3][37]. - The report emphasizes the importance of these initiatives in enhancing the stability and efficiency of the power supply [3][37]. Investment Recommendations - The report highlights specific companies to watch, including Huadian International, Jingtou Energy, and Funiu Co. for thermal power, and Changjiang Electric Power and Chuan Investment Energy for hydropower [3][19]. - It also notes the potential for growth in companies involved in green electricity projects, particularly those benefiting from the implementation of the 136 document [3][19].