公用事业行业周报：电价谈判，贸易商并不等于电厂观点

Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Viewpoints - The report indicates that the recent decline in the power sector is influenced by pessimistic expectations regarding electricity prices, but the necessity for such pessimism is low. The overall supply-demand situation for thermal power remains tight, leading to an optimistic outlook for future electricity prices [2][3] - The report highlights that the installed power generation capacity in the country reached approximately 3.16 billion kilowatts by the end of September, representing a year-on-year increase of 14.1%. Among this, thermal power capacity grew by 3.4% [3] - The average utilization hours of power generation equipment decreased by 106 hours year-on-year, with a total of 2,619 hours recorded from January to September [3] - The report suggests that the valuation of leading power companies is currently at a long-term low, with price-to-earnings ratios (PE) below 10 times, while dividend rates are increasing, indicating high growth potential [3] Summary by Sections Market Performance - The report notes the weekly performance of the power sector, with specific companies showing varied results: Huadian International +0.6%, Huaneng International +3.3%, Yangtze Power -3.1%, China Nuclear Power -2.4%, and Longyuan Power +16% due to asset injection [2] Electricity Price Negotiation - The report emphasizes that power plants, as state-owned enterprises, should not express excessive opinions on electricity prices, which has led to a one-sided public sentiment favoring price reductions. However, the actual decrease in electricity prices last year was minimal [2] Future Outlook - The report maintains a positive outlook for electricity prices, predicting that coal and electricity prices will not change significantly compared to 2024, with only minor declines expected in certain provinces [2][3] Recommendations - The report recommends focusing on companies with thermal power elasticity (e.g., Zhejiang Energy, Anhui Energy) and those undergoing transformation (e.g., China Power) as well as companies involved in renewable energy and hydropower [3]