GOLDEN SUN SECURITIES·2025-08-17 14:11Investment Rating - The report maintains a "Buy" rating for the green electricity sector and recommends focusing on undervalued green electricity stocks and wind power operators [8][9]. Core Viewpoints - In July, electricity generation increased by 3.1%, with accelerated growth in thermal, wind, and solar power, while hydropower saw a decline [2][13]. - The first mechanism electricity price bidding was initiated in Shandong, marking a significant step in the national electricity market [6][15]. - The total scale of mechanism electricity is set at 9.467 billion kilowatt-hours, with wind power accounting for 8.173 billion kilowatt-hours and solar power for 1.294 billion kilowatt-hours [7][15]. Summary by Sections Industry Overview - In July, the industrial electricity generation reached 926.7 billion kilowatt-hours, a year-on-year increase of 3.1%, with daily average generation at 29.89 billion kilowatt-hours [2][14]. - The growth rates for various power sources in July were as follows: thermal power increased by 4.3%, wind power by 5.5%, solar power by 28.7%, while hydropower decreased by 9.8% [2][14]. Mechanism Electricity Bidding - Shandong Province released the implementation details for the mechanism electricity price bidding, which includes bidding subjects, bidding electricity volume, bidding mechanisms, and procedures [6][15]. - The bidding process will occur annually in October, with the first bidding scheduled for August 2025 [6][14]. Key Investment Recommendations - The report suggests focusing on undervalued green electricity stocks, particularly in the Hong Kong market, and highlights specific companies such as New天绿色能源 (H), 中闽能源, and 福能股份 [8][9]. - It also recommends thermal power companies with resilient quarterly performance, including 华能国际, 华电国际, and 宝新能源 [8][9]. Market Performance - The Shanghai Composite Index closed at 3696.77 points, up 1.70%, while the CSI 300 Index closed at 4202.35 points, up 2.37% [67]. - The CITIC Power and Utilities Index fell by 0.10%, underperforming the CSI 300 Index by 2.47 percentage points [67]. Carbon Market Insights - The national carbon market saw a decrease in trading prices by 0.72%, with a total trading volume of 3.0317 million tons during the week [59][60].