SINOLINK SECURITIES·2025-08-23 14:50Investment Rating - The report suggests focusing on power generation assets in regions with tight supply-demand balance and favorable competition dynamics, particularly recommending companies like Sheneng Co. and Huadian International in the thermal power sector [4]. Core Insights - The report highlights the importance of dividend yield in investment strategies, particularly in the public utility sector, where companies like Yangtze Power and Guodian Power are expected to increase their dividend payouts significantly over the next few years [4][40]. Market Review - The Shanghai Composite Index rose by 3.49% and the ChiNext Index increased by 5.85% during the week of August 18-22. The carbon neutrality sector saw a 4.35% increase, while the public utility sector rose by 1.75% [12]. Industry News - The Ministry of Finance issued guidelines to regulate the construction and operation of existing PPP projects, aiming to enhance efficiency and public service levels [66]. - The National Energy Administration reported that the total electricity consumption in July reached 10,226 billion kWh, a year-on-year increase of 8.6% [66]. Investment Recommendations - Thermal Power Sector: Focus on companies with assets in regions with tight supply-demand and good competition dynamics, such as Anhui Energy and Huadian International [4]. - Hydropower: Recommend leading hydropower operator Yangtze Power due to stable electricity prices and regional supply-demand tightness [4]. - Nuclear Power: Suggest investing in China National Nuclear Power, which is expected to benefit from stable electricity prices and high dividend capabilities [4]. - Renewable Energy: Highlight Longyuan Power as a leading wind power operator to watch [4]. - Environmental Sector: Recommend Yuhua Tian as a leading urban comprehensive operation management service provider [4].