Minsheng Securities·2025-06-01 10:23Investment Rating - The report maintains a "Recommended" rating for China Nuclear Power and Huaneng Water Power, and a "Cautious Recommendation" for China General Nuclear Power, Funiu Co., Longyuan Power, and Waneng Power [4][22]. Core Viewpoints - The electricity sector outperformed the broader market, with the public utility sector index closing at 2379.40 points, down 0.18%, and the electricity sub-sector at 3176.11 points, down 0.15% [1][8]. - The report highlights the implementation of a market-oriented pricing mechanism for renewable energy in Inner Mongolia, effective from July 1, 2025, ensuring stable returns for existing projects [2][24]. - The push for green electricity direct connection aims to enhance the integration of renewable energy production and consumption, with a target for self-consumed renewable energy to account for at least 60% of total generation by 2030 [3][26]. Summary by Sections Weekly Market Review - The electricity sector showed resilience, with specific increases in solar power (up 0.61%) and wind power (up 0.27%), while hydropower saw a decline of 0.98% [1][14]. - The report notes that the electricity market in Inner Mongolia has reached a 91% share of renewable energy transactions by 2024 [25]. Industry Data Tracking - The average price of thermal coal remained stable at 669.00 CNY/ton, while the price index for coastal thermal coal was 578.00 CNY/ton, reflecting a slight increase [29][30]. - The report tracks various energy prices, including a decrease in LNG prices to 4,419.00 CNY/ton and a slight increase in diesel prices to 6,695.67 CNY/ton [31][34]. Industry Dynamics - The report emphasizes the importance of asset restructuring and mergers in the industry, with ongoing developments expected in companies like Yuanda Environmental and Electric Investment [21]. - The report also highlights the significance of waste-to-energy projects and their role in achieving diversified energy solutions [21].