CICC(SH:601995)2025-02-11 09:29Investment Rating - The report suggests a cautious outlook for the electricity sector in 2025, highlighting both challenges and opportunities for investment in green electricity operators, particularly those with low valuations and strong market positions [3][7]. Core Insights - The electricity sector is facing a relatively low heat in 2025 due to concerns over falling trading prices, but there are opportunities driven by supportive policies for renewable energy [3]. - The new pricing policy for renewable energy requires all new energy electricity to enter market trading, which is expected to stabilize revenue expectations and boost investor confidence [5]. - The report emphasizes the importance of green electricity consumption in achieving energy consumption targets, with policies encouraging high-energy-consuming enterprises to increase their use of green electricity [6]. - The photovoltaic (PV) industry is expected to see a recovery in earnings per share (EPS) in the second half of the year, with a focus on inventory reduction in the first half [10][11]. - Wind power installations are projected to reach 120-130 GW in 2025, with significant growth expected in offshore wind projects [23][27]. Summary by Sections Electricity Sector Overview - The electricity sector is experiencing a downturn in trading prices, but supportive policies for green electricity are expected to create investment opportunities [3][5]. - The new pricing policy for renewable energy aims to stabilize revenue expectations and enhance investment confidence [5]. Green Electricity Consumption - Domestic policies are pushing for increased green electricity consumption to meet energy consumption targets, with specific measures to support high-energy-consuming industries [6]. Photovoltaic Industry - The PV industry is expected to focus on inventory reduction in the first half of 2025, with a recovery in EPS anticipated in the latter half [10][11]. - The report highlights the impact of European component price increases and domestic bidding processes on the industry [10]. Wind Power Sector - Wind power installations are projected to reach 120-130 GW in 2025, with a significant portion coming from onshore projects [23]. - The offshore wind market is expected to see substantial growth, with numerous projects in the pipeline [27][28]. Investment Recommendations - The report recommends focusing on undervalued green electricity operators, particularly those with a strong presence in wind energy [7]. - Specific companies such as Dongfang Cable, Goldwind Technology, and Yunda Express are highlighted for their potential in the wind power sector [25][26].