Soochow Securities·2025-06-09 02:23Investment Rating - Maintain "Buy" rating for the utility sector, focusing on green electricity direct connection and photovoltaic asset value reassessment [1][2] Core Insights - The report emphasizes the potential for value reassessment of photovoltaic assets, particularly through innovative financing models like RWA (Real World Asset) [2][5] - The National Development and Reform Commission and the National Energy Administration are promoting green electricity direct connection, aiming for a self-consumption rate of at least 60% for new energy projects [5] - The report highlights various investment opportunities across different segments of the utility sector, including thermal, hydro, nuclear, and green energy [2] Summary by Sections 1. Market Review - The SW utility index decreased by 0.13% during the week of June 2-6, 2025, with notable performances in gas and photovoltaic sectors [10] - Top gainers included ST Jinhong (+17.3%) and Zhongtai Shares (+15.0%), while top losers included Guangdong Electric A (-8.8%) and Jiangsu New Energy (-6.5%) [10][13] 2. Power Sector Tracking 2.1 Electricity Consumption - Total electricity consumption from January to April 2025 reached 3.16 trillion kWh, a year-on-year increase of 3.1% [14] - Growth rates improved across all sectors, with the primary industry seeing a 10.0% increase [14] 2.2 Power Generation - Cumulative power generation for the same period was 2.98 trillion kWh, reflecting a slight year-on-year increase of 0.1% [25] - Notable growth in nuclear (+12.7%) and photovoltaic (+19.5%) generation, while thermal generation decreased by 4.1% [25] 2.3 Electricity Prices - The average grid purchase price in May 2025 was 394 RMB/MWh, down 3% year-on-year but up 0.4% month-on-month [42] 2.4 Thermal Power - As of June 6, 2025, the price of thermal coal at Qinhuangdao port was 609 RMB/ton, a significant year-on-year decrease of 30.2% [47] - The cumulative installed capacity of thermal power reached 1.46 billion kW, with a year-on-year increase of 4.1% [49] 2.5 Hydropower - The Three Gorges Reservoir's water level was normal at 153 meters, with inflow and outflow rates showing mixed trends [55] - Cumulative installed capacity for hydropower reached 440 million kW, with a slight year-on-year increase of 3.0% [57] 2.6 Nuclear Power - The approval of 11 new nuclear units in 2024 indicates a robust growth trajectory for the sector [2] 2.7 Green Energy - The report highlights the potential for green energy growth, with significant increases in installed capacity for wind (+18.5%) and photovoltaic (+74.6%) from January to April 2025 [2][5]