Soochow Securities·2025-06-09 03:23Investment Rating - The report maintains a rating of "Buy" for the utility sector [1]. Core Insights - The report emphasizes the potential for value reassessment of photovoltaic (PV) assets, particularly through the integration of green electricity direct connection and physical asset tokenization [2]. - It highlights the government's push for green electricity direct connection, mandating that self-generated renewable energy should account for at least 60% of total available generation [5]. - The report identifies key investment opportunities across various segments of the utility sector, including thermal, hydro, nuclear, and green energy [2]. Summary by Sections 1. Electricity Consumption - In the first four months of 2025, total electricity consumption reached 3.16 trillion kWh, reflecting a year-on-year increase of 3.1%, with notable growth in the primary industry at 10.0% [14][15]. 2. Power Generation - Cumulative power generation for the same period was 2.98 trillion kWh, showing a slight year-on-year increase of 0.1%. The generation from thermal, hydro, nuclear, wind, and solar sources varied, with solar power seeing a significant increase of 19.5% [25][26]. 3. Electricity Prices - The average electricity purchase price in May 2025 was 394 RMB/MWh, down 3% year-on-year but up 0.4% month-on-month [42]. 4. Thermal Power - The price of thermal coal at Qinhuangdao port was 609 RMB/ton as of June 6, 2025, reflecting a 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]. 5. Hydropower - The water level at the Three Gorges Reservoir was 153 meters, consistent with previous years, indicating stable hydrological conditions [55]. - The cumulative installed capacity of hydropower was 440 million kW, with a year-on-year increase of 3.0% [57]. 6. Nuclear Power - In 2024, 11 new nuclear units were approved, indicating a steady growth trajectory for the nuclear sector [26]. 7. Green Energy - The report highlights the collaboration between GCL-Poly and Ant Group on a 200 million RMB photovoltaic RWA project, marking a significant step in the digital financing of green assets [5].