公用事业行业：12月中央经济工作会议解读-稳经济措施提振电力需求，能源转型步伐加快

Investment Rating - The report maintains a "Recommended" rating for the public utility sector [5]. Core Insights - Economic stabilization measures are expected to boost electricity demand across society, with a projected increase in total electricity consumption to 10.41 trillion kWh by 2025, representing a year-on-year growth of 6.0% [2]. - The report emphasizes the acceleration of energy transition efforts, including carbon reduction and green growth, with significant increases in installed capacity for wind and solar energy expected by the end of 2024 [2]. - The report highlights the advantages of hydropower and nuclear power as high-dividend assets, benefiting from a favorable monetary policy that is likely to lower financial costs and enhance profitability [3]. - Short-term investment opportunities are identified in the thermal power sector, while long-term prospects are favorable for hydropower and nuclear power due to their stable performance and strong dividend capabilities [3]. Summary by Sections Economic Measures and Electricity Demand - The central economic work conference has proposed proactive macroeconomic policies to expand domestic demand and stabilize the real estate market, which is expected to enhance overall electricity demand [2]. - The report cites a forecast from the Southern Power Grid Energy Development Research Institute, predicting a total electricity consumption of 10.41 trillion kWh by 2025, a 6.0% increase from the previous year [2]. Energy Transition and Carbon Reduction - The report discusses the emphasis on coordinated efforts to reduce carbon emissions and promote green growth, with a focus on accelerating the construction of renewable energy bases and establishing carbon market frameworks [2]. - By the end of 2024, the cumulative installed capacity for wind and solar power is expected to reach 510 million kW and 840 million kW, respectively, with a total of 1.35 billion kW of renewable energy capacity [2]. Financial Outlook for Public Utilities - The report notes that the implementation of a moderately loose monetary policy is likely to lead to lower interest rates, benefiting high-dividend assets in the hydropower and nuclear sectors [3]. - Financial costs for major companies in the sector, such as Yangtze Power and China Nuclear Power, are highlighted, with significant financial expenses reported for 2023 [3]. - The report suggests that the dividend yield advantage of hydropower and nuclear power assets will be further enhanced in a declining interest rate environment [3]. Investment Recommendations - The report recommends focusing on companies with improving performance and valuation potential in the thermal power sector in the short term, while favoring hydropower and nuclear power companies for long-term investments [3]. - Specific companies to watch include Huaneng International, Anhui Electric Power, and China General Nuclear Power [3].