山西省启动2026年增量新能源项目机制电价竞价工作，多家电力公司披露2025年经营数据

Market Overview - The Shanghai and Shenzhen 300 Index increased by 0.57%, the Utilities Index rose by 0.06%, and the Environmental Index grew by 0.27%, with relative weekly returns of 0.63% and 0.84% respectively [2] - Among the 31 primary industry sectors classified by Shenwan, the Utilities and Environmental sectors ranked 13th and 11th in terms of growth [2] Power Sector Performance - In the power sector, thermal power increased by 0.35%, while hydropower decreased by 1.76%, and renewable energy generation rose by 1.61% [2] - The water sector saw a decline of 0.28%, and the gas sector fell by 1.17% [2] Important Events - Shanxi Province announced a bidding mechanism for new energy projects for 2026, with a total bidding scale of 95.76 billion kWh, including 35.27 billion kWh for wind power and 60.49 billion kWh for solar power [3] - The bidding price range is set between 0.2 and 0.32 yuan/kWh, with a bidding capacity sufficient rate of 120% for both wind and solar [3] Water Pricing Trends - Water prices in China have remained low due to complex adjustment procedures, but over 26 cities are expected to raise water prices by 2025 due to increasing cost pressures on water supply companies [4] - The adjustment will likely affect residential, non-residential, and special industry water pricing simultaneously [4] Investment Strategies - In the utilities sector, coal and electricity prices are declining, which may help maintain reasonable profitability for thermal power companies, with recommendations for Huadian International and Shanghai Electric [5] - Continuous government support for renewable energy is expected to stabilize profitability in this sector, with recommendations for leading companies like Longyuan Power and Three Gorges Energy [5] - Nuclear power companies are anticipated to maintain stable profitability, with recommendations for China Nuclear Power and China General Nuclear Power [5] - High-dividend hydropower stocks are highlighted for their defensive attributes in a global interest rate decline environment, recommending Yangtze Power [5] - The gas sector is advised to focus on companies with capabilities in marine gas trading, such as Jiufeng Energy [5] Environmental Sector Insights - The water and waste incineration industries are entering a mature phase, with significant improvements in free cash flow, suggesting investment opportunities in the environmental sector [6] - The domestic scientific instrument market, exceeding $90 billion, presents substantial opportunities for domestic replacements, recommending companies like Juguang Technology and Wanyi Technology [6] - The EU's SAF blending policy is expected to increase demand for raw materials, benefiting the domestic waste oil recycling industry, with recommendations for Shangaohuaneng [6]