公用事业行业周报：火电：Q3业绩增速低点，Q4或明显好转

Investment Rating - The investment rating for the utility sector is "Outperform the Market" and is maintained [2] Core Viewpoints - The third quarter performance growth rate is at a low point, with expectations for improvement in the fourth quarter. Major companies like Huadian International and Huaneng International showed slight changes in performance, with Huadian International at +3% and Huaneng International at -1.1% [2] - The overall performance of thermal power companies in Q3 met expectations, indicating that Q3 is the low point for industry growth, with a notable improvement anticipated in Q4 [2] - The profit for the electricity, heat, gas, and water sectors reached 276.3 billion, with a growth rate of 47%, outperforming manufacturing and mining industries [3] - The National Energy Administration forecasts a 5% year-on-year increase in electricity consumption for Q4, with an annual growth rate of 7% expected for 2024 [3] - The establishment of market mechanisms for renewable energy pricing and trading is being promoted by six ministries, aiming to enhance the marketization of electricity pricing [4] - The valuation of leading power companies remains low, with opportunities in thermal power investments highlighted, particularly in companies like Zhejiang Energy and Huaneng International [5] Summary by Sections Q3 Performance and Future Outlook - Q3 performance growth rates for major thermal power companies were as follows: Huadian International +3%, Huaneng International -1.1%, and China Nuclear Power -1.3%. The overall industry is expected to see improvement in Q4 [2] Profitability and Market Trends - The profit for the electricity sector reached 599.3 billion, with a year-on-year growth of 12.1%, indicating strong performance compared to other sectors [3] - The total installed power generation capacity reached 3.16 billion kilowatts, with a year-on-year increase of 14.1% [3] Policy and Market Mechanisms - The government is working on market reforms for renewable energy pricing, aiming to support direct trading between renewable energy projects and users [4] - The EU's carbon pricing is expected to rise significantly, which may further drive the development of renewable energy [4] Investment Opportunities - The report suggests focusing on companies with strong thermal power elasticity and those transitioning to renewable energy, highlighting specific companies for potential investment [5]