公用事业行业深度跟踪：公用事业化与电改，电力的β1+β2

Investment Rating - The report assigns a "Buy" rating for the utility sector [2]. Core Insights - The utility sector is driven by two main factors: β1, led by Changjiang Electric's utility transformation, and β2, the advancement of power system reform. The former is expected to stabilize further, while the latter is poised for significant progress [2][22]. - The report highlights the importance of mid-year performance and operational data releases, such as thermal power generation and hydropower pricing, which have led to notable fluctuations in the sector [2][21]. - The anticipated increase in dividend rates and the decline in long-term interest rates are expected to enhance valuations across the sector, benefiting hydropower stocks significantly [12][13]. Summary by Sections Section 1: Utility Transformation and Power Reform - The report discusses the ongoing utility transformation and power reform, emphasizing the stability brought by Changjiang Electric and the potential for future growth driven by reform initiatives [2][22]. - It notes that hydropower has seen a significant increase in generation, with a year-on-year growth of 43% in Q2, which is expected to lead to higher dividends due to a commitment to a minimum payout ratio of 70% [12][19]. Section 2: Policy Review - The report references key policies aimed at furthering the reform of the utility sector, including the establishment of a unified national power market and the optimization of pricing systems for residential electricity and gas [2][30]. Section 3: Industry High-Frequency Data Tracking - Recent data indicates a stabilization in domestic and international energy prices, with coastal power plant loads showing a mixed trend [4]. - The report highlights the significant recovery in natural gas prices, which has stabilized in recent weeks [4]. Section 4: Key Announcements and Market Tracking - The report tracks individual stock dynamics, noting that companies like Datang Power and Huaneng Water Power have shown resilience despite market fluctuations [4]. - It also discusses the valuation levels of the sector, which are currently at mid-low levels compared to historical data, suggesting potential for valuation re-rating [4]. Section 5: Stock Performance and Valuation Metrics - The report provides detailed valuation metrics for key companies in the sector, including expected EPS, PE ratios, and dividend yields, indicating a favorable outlook for companies with high ROE and low valuations [3][32]. - Specific companies highlighted for investment include Changjiang Electric, Huaneng International Power, and Guizhou Development, all of which exhibit strong fundamentals and growth potential [3][32].