Huaneng Hydropower(SH:600025) Tai Ping Yang Zheng Quan·2025-07-14 12:46Investment Rating - The industry is rated positively, with expectations of overall returns exceeding the CSI 300 Index by more than 5% in the next six months [55]. Core Insights - Yunnan Province has abundant natural resources, with a total water resource of 214.1 billion cubic meters, ranking third in the country, and a significant increase in solar photovoltaic (PV) installations [2][12]. - The province is enhancing its energy consumption capacity through new storage projects, with four approved pumped storage power stations totaling approximately 5.9 GW of capacity [3][28]. - Yunnan's electricity exports reached a historical high of over 160 billion kWh in 2024, marking a year-on-year growth of about 19% [4][36]. - The leading hydropower company, Huaneng, is expected to see significant growth, with a total hydropower installed capacity of approximately 27.31 GW by the end of 2024 [5][46]. - Yunnan's photovoltaic industry benefits from lower carbon footprints and reduced electricity prices during the wet season, positioning it to withstand market fluctuations [6][52]. Summary by Sections 1. Resource Empowerment for Hydropower Development - Yunnan's hydropower resources are rich, with a total installed capacity of 83.6 GW by the end of 2024, showing a year-on-year increase of 2.17 GW [12][19]. - The province has favorable conditions for developing wind and solar energy, with a cumulative PV installed capacity of 39.16 GW by the end of 2024, including significant additions in 2023 and 2024 [19][25]. 2. Temporal and Spatial Complementarity for Energy Consumption - Yunnan is actively promoting new storage projects to enhance energy consumption capacity, with a focus on optimizing the new power system [27][28]. - The integration of multiple energy sources, including hydropower, wind, and solar, supports the consumption of renewable energy [31]. 3. Leading Hydropower Growth and Low-Carbon Manufacturing - Huaneng's hydropower capacity is steadily increasing, with projections for significant revenue growth in the coming years, supported by the full operation of the TB hydropower station [41][49]. - The province's low-carbon manufacturing capabilities are enhanced by its competitive electricity pricing and reduced carbon footprints across the solar supply chain [50][52].