电力改革奋勇当先，健全价格形成机制

Investment Rating - The report maintains a positive outlook on the public utility sector, with a recommendation to focus on specific companies within the industry [3]. Core Insights - The report emphasizes the ongoing electricity market reform in China, which aims to establish a more market-driven pricing mechanism for electricity [4][5]. - It highlights the potential for increased revenue in thermal power from non-electricity markets, as well as the benefits for hydropower from auxiliary service market developments [5][6]. - The report suggests that investment in the renewable energy sector is expected to become more rational, with an improved pricing mechanism for natural gas and water services [6]. Summary by Sections Electricity Market Reform - The report discusses the importance of the recent government opinions on enhancing the pricing governance mechanism, which includes promoting market-oriented pricing for various electricity sources [4]. - It notes that the reform is expected to accelerate, leading to a higher degree of market pricing for electricity commodities [4][5]. Revenue Potential - Thermal power is anticipated to gain higher returns from capacity and auxiliary service markets as the pricing for electricity, capacity, and auxiliary services becomes market-driven [5]. - Hydropower is expected to benefit from its superior attributes in various markets, including energy, capacity, and green electricity markets [5]. Renewable Energy and Pricing Policies - The report outlines the government's plans to enhance energy pricing policies to support green and low-carbon transitions, which may lead to increased demand for clean energy consumption [6]. - It also mentions that as the market for renewable energy becomes more mature, the risks associated with price fluctuations may increase, prompting a more rational investment approach [6]. Company Recommendations - The report suggests focusing on specific companies within the thermal power sector (e.g., Huadian International, Anhui Energy, Datang Power, Huaneng International), hydropower (e.g., Yangtze Power, Huaneng Hydropower), and nuclear power (e.g., China National Nuclear Power, China General Nuclear Power) [3].