Shenwan Hongyuan Securities·2025-06-02 14:13Investment Rating - The report maintains a positive outlook on the electricity and natural gas sectors, highlighting investment opportunities in renewable energy and gas companies [2][3]. Core Insights - The report emphasizes the acceleration of green electricity direct connection initiatives and the need for natural gas consumption recovery [3][4]. - It notes that the National Development and Reform Commission and the National Energy Administration have issued a notification to promote the integration of renewable energy production and consumption [6][7]. - The report indicates a 2% year-on-year decline in national natural gas consumption in April 2025, with a total consumption of 34.73 billion cubic meters [34]. Summary by Sections Electricity Sector - The report discusses the promotion of green electricity direct connection, with a focus on local consumption and efficiency [3][6]. - It outlines the guidelines for renewable energy self-consumption, stating that by 2025, at least 30% of total electricity consumption should come from self-generated renewable energy, increasing to 35% by 2030 [7][8]. - The Inner Mongolia region has released a detailed plan for market-oriented pricing of renewable energy, ensuring stable returns for existing projects [8][9]. Natural Gas Sector - The report highlights a 2% decline in natural gas consumption in April 2025, attributing this to warm winter temperatures and high upstream pipeline prices [34]. - It notes that the LNG export capacity from the US and the Middle East is expected to increase, which may enhance the economic viability of imported gas [34]. - Recommendations include focusing on integrated gas trading companies and city gas firms, with specific companies highlighted for investment [35]. Market Dynamics - The report reviews the performance of various sectors, indicating that the electricity, public utilities, and environmental sectors outperformed the market [37]. - It provides insights into the pricing trends of natural gas in North America and Europe, noting a general decline in prices [13][22]. - The report also discusses the ongoing infrastructure improvements in natural gas pipelines and the push for renewable energy projects across various provinces [42][51].