Zhongyuan Securities·2025-06-18 09:35Group 1 - The power and utilities industry demonstrates strong defensive characteristics with stable growth in performance, achieving a revenue of 25,527.42 billion and a net profit of 2,081.10 billion in 2024, with a year-on-year growth of 0.12% and 6.79% respectively [12][17] - As of June 15, 2025, the power and utilities index increased by 2.25%, outperforming the CSI 300 index by 4.05 percentage points, ranking 14th among 30 major industries [13][3] - Water power shows the most stable performance and highest dividend ratio, contributing over 82% of the net profit in the power and utilities sector in 2024, while nuclear power's growth is affected by declining market prices [17][18] Group 2 - Water power is highlighted as a long-term investment focus due to its mature industry development and natural monopoly characteristics, with major operators like Yangtze Power and Huaneng Hydropower being recommended for attention [4][31] - The market price reform for electricity is accelerating, leading to uncertainties for power generation companies, but water power maintains a competitive advantage with the lowest pricing and potential for long-term price increases [4][40] - The financial costs for water, gas, and thermal power have significantly decreased, enhancing net profit levels, with water power's gross margin reaching over 54% in 2024 [19][46] Group 3 - The decline in electricity prices has impacted revenue, but the drop in coal prices has improved the profitability of thermal power, with a revenue of 13,616.01 billion in 2024, a decrease of 0.95% year-on-year [20][56] - The coal price has decreased significantly, with a drop of 20.78% by June 2025, benefiting thermal power companies by reducing fuel costs [61][66] - The report suggests a long-term investment perspective on the joint development of water and thermal power, particularly focusing on companies like Guotou Power [52][69]