SINOLINK SECURITIES·2025-08-09 12:27Investment Rating - The report maintains a "Buy" rating for the utilities and environmental protection industry [1] Core Viewpoints - The report highlights the structural characteristics of electricity consumption growth from 2023 to 2025, noting that the growth in electricity consumption from the tertiary industry and charging stations remains resilient, while the secondary industry and residential electricity consumption show relative weakness [3][33] - The report suggests focusing on power generation assets in regions with tight electricity supply and favorable competition, recommending companies such as Anhui Energy and Huadian International for thermal power, and China Nuclear Power for nuclear power [2][66] - The report emphasizes the importance of new energy development, market mechanisms, and zero-carbon park construction as key drivers for the industry's transformation [3][60] Summary by Sections Weekly Market Performance - The Shanghai Composite Index rose by 2.11%, with the carbon neutrality sector up by 2.47%, the environmental sector up by 2.41%, and the utilities sector up by 1.76% [1][9] Electricity Consumption Growth Analysis - The contribution rate of urban and rural residential electricity consumption significantly declined from 18.2% in 2024 to 7.7% in 2025 due to a "warm winter" phenomenon [3][33] - The secondary industry's electricity consumption growth rate and contribution rate have been continuously declining, with high-energy-consuming industries recovering at a low level post-pandemic [3][33] - The tertiary industry's electricity consumption remains robust, driven by rigid demand in the service sector and growth in information transmission due to AI development [3][33] Policy and Regulatory Updates - The National Development and Reform Commission and the National Energy Administration issued new rules for electricity market measurement and settlement, effective from October 1, 2025 [3][60] - The report discusses the focus of major state-owned enterprises on new energy development, storage technology, and global energy market participation [3][60] Investment Recommendations - The report recommends focusing on leading companies in various sectors, including Anhui Energy and Huadian International for thermal power, Yangtze Power for hydropower, and Longyuan Power for wind energy [2][66] - It also suggests monitoring the environmental sector, particularly urban comprehensive operation management service providers like Yuhua Tian [2][66] Industry Trends - The coal sector is experiencing upward pressure due to supply constraints and rising demand, while the thermal power sector faces slight pressure from high coal prices and seasonal demand fluctuations [3][66] - The renewable energy sector, particularly wind and solar, is expected to see stable growth despite some challenges in installation and utilization rates [3][66]