公用事业行业周报：风电延续改善趋势，内蒙鼓励增量配电网建设-2025-03-17

Investment Rating - The report maintains an "Overweight" rating for the utility sector, consistent with the previous rating [6]. Core Insights - In February 2025, wind power generation continued to show a year-on-year improvement, with four Hong Kong-listed companies reporting their generation data for January and February 2025. The wind power generation figures were 111.8, 57.6, 16.9, and 28.8 billion kWh for Longyuan Power, Datang New Energy, CGN New Energy, and Xintian Green Energy, respectively, reflecting year-on-year growth rates of +2.6%, +9.8%, -3.1%, and +13.8% [8][6]. - Inner Mongolia is encouraging the construction of incremental distribution networks to address consumption issues, as outlined in a recent announcement from the Inner Mongolia Energy Bureau. This policy aims to shift the responsibility of consumption from the regional grid to the distribution network project owners [9][10]. Summary by Sections Investment Highlights - The report highlights the ongoing improvement in wind power generation and the new policy in Inner Mongolia aimed at enhancing the consumption of renewable energy [8][9]. - The report suggests that the marginal improvement in wind power generation for three companies is likely due to favorable wind conditions, with differences in growth rates attributed to project regional distribution [8]. Subsector Recommendations - Thermal Power: Focus on companies with advantageous locations and strong performance improvement certainty, recommending Wanhua Power, Sheneng Co., and Huadian International Power [11]. - Gas: Emphasize dividend value enhancement under improving free cash flow trends, recommending leading companies such as China Resources Gas, Xinao Gas, and China Gas [11]. - Wind and Solar: Await policy-driven improvements in industry factors, recommending high-quality stocks with significant wind power proportions, such as Xintian Green Energy and Yunnan Energy Investment [11]. - Hydropower: Reverse investment in high-quality large hydropower basins, recommending China Yangtze Power and Sichuan Investment Energy [11]. - Nuclear Power: Long-term hidden return rates are worth attention, recommending CGN Power and China National Nuclear Power [11]. Market Review - From March 10 to March 14, 2025, the utility sector saw a price increase of 2.21%, with notable performances from various subsectors, including hydropower (+0.88%), thermal power (+3.39%), wind power (+2.09%), solar (+4.68%), and gas (+2.01%) [15][21].