Minsheng Securities·2025-06-01 10:45Investment Rating - The report maintains a "Buy" rating for several companies, including China Nuclear Power and Funiu Co., while providing a "Cautious Buy" rating for others like China General Nuclear Power and Longyuan Power [4][22]. Core Insights - The electricity sector outperformed the broader market, with the 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]. - A push for green electricity direct connection is emphasized, with new regulations mandating that at least 60% of annual self-generated electricity from renewable sources must be consumed on-site [3][26]. Summary by Sections Weekly Market Review - The electricity sector showed resilience, with specific sub-sectors like photovoltaic and wind power experiencing slight increases of 0.61% and 0.27%, respectively, while hydropower saw a decline of 0.98% [1][14]. 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 of 0.17% [29]. - The report notes that the domestic diesel price rose to 6,695.67 CNY/ton, while WTI and Brent crude oil prices fell to 60.94 and 63.35 USD/barrel, respectively [31]. Industry Dynamics - The report tracks significant policy developments, including the announcement of a market-oriented pricing mechanism for renewable energy in Inner Mongolia, which will stabilize returns for existing projects [24][58]. - The report also discusses the ongoing reforms in the electricity market, including the introduction of long-cycle settlement trials in Jiangsu province starting June 1, 2025 [58].