公用事业行业周报：三中全会，全国统一的电力市场

Investment Rating - The report indicates a neutral investment rating for the industry, suggesting that the expected performance of the industry will be within -10% to +10% relative to the benchmark index [8]. Core Insights - The recent increase in electricity prices is noted, with specific stocks such as China Power International (+0.3%), Huaneng International (+0.6%), and China Yangtze Power (+5%) showing positive performance, while China General Nuclear Power experienced a decline of -1.8% [4]. - The report highlights the significant adjustments in electricity stocks over the past two weeks, driven by policy expectations and concerns over performance. Despite some optimistic earnings reports, stock prices have declined, indicating a market that is heavily influenced by policy anticipation [4]. - The Third Plenary Session's emphasis on establishing a unified national electricity market is expected to have widespread implications, including the potential consolidation of regional power grids and a unified pricing system for different energy sources [4]. - The National Development and Reform Commission's action plan for coal power low-carbon transformation aims for a 20% reduction in carbon emissions per unit of electricity by 2025 and a 50% reduction by 2027, with various methods of transformation being explored [4]. Summary by Sections Electricity Market Performance - In June, the year-over-year (YOY) electricity generation from thermal power decreased by 7.4%, while hydropower increased by 44.5%. The total industrial electricity generation for the first half of the year was 4.4 trillion kilowatt-hours, reflecting a YOY increase of 5.2% [5]. - The report notes that the valuation of leading electricity companies remains low, with expectations for profit growth in 2024. It suggests focusing on companies with strong thermal power elasticity and those undergoing transformation [5]. Investment Opportunities - The report identifies several investment opportunities within the electricity sector, including thermal power companies (e.g., Zhejiang Energy, Huadian International), companies transitioning to low-carbon models (e.g., China Power), and those involved in renewable energy (e.g., Three Gorges Energy, Longyuan Power) [5].