Shenwan Hongyuan Securities·2025-06-23 09:53Investment Rating - The report maintains a positive outlook on the power and gas sectors, indicating potential investment opportunities in these areas [2]. Core Insights - In May, the total industrial power generation was 737.8 billion kWh, showing a year-on-year increase of 0.5%. The growth was primarily driven by thermal and renewable energy sources, with wind power contributing the most to the increase [5][6]. - The report highlights that geopolitical conflicts have led to rising global gas prices, with significant increases observed in various markets, including a 16.75% rise in the Henry Hub spot price [21][24]. - The report suggests several investment opportunities across different sectors, including power generation, natural gas, and environmental services, emphasizing the importance of clean energy and integrated gas trading [2][45]. Summary by Sections 1. Power Generation - In May, the total industrial power generation was 7378 billion kWh, with thermal power generation at 4615 billion kWh (up 1.2% YoY) and renewable sources like wind and solar showing growth rates of 11.0% and 7.3% respectively [5][7]. - The contribution of renewable energy sources to the overall power generation continues to increase, with wind power contributing the highest increment compared to the previous year [6][7]. 2. Natural Gas - Geopolitical tensions have raised concerns about supply, leading to a sustained increase in global gas prices. As of June 19, the Henry Hub spot price reached $3.09/mmBtu, marking a 16.75% increase [21][24]. - The report notes that while the overall gas supply chain remains stable, any disruptions in key regions could further support price increases [21][28]. 3. Weekly Market Review - The report indicates that various sectors, including utilities and power, underperformed compared to the Shanghai and Shenzhen 300 index, while the gas sector outperformed [47]. 4. Company and Industry Dynamics - The report discusses significant project announcements, including a major offshore wind power project by China Power Construction with a contract value of approximately 10.77 billion yuan [54]. - It also highlights the ongoing developments in hydrogen energy and solid-state battery technologies, indicating a shift towards innovative energy solutions [56].