SINOLINK SECURITIES·2025-09-14 11:54Investment 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 for thermal power, and Yangtze Power for hydropower [4] Core Viewpoints - The report highlights the recent auction results for renewable energy pricing in Shandong, indicating a total of 94.67 billion kWh of selected projects, with wind power accounting for 59.67 billion kWh and solar power for 12.48 billion kWh [6][32] - It notes that the winning bid price for wind power was 0.319 yuan/kWh, which is an 8.9% discount from the auction ceiling, while solar power had a winning bid of 0.225 yuan/kWh, reflecting a 35.7% discount [6][33] - The report emphasizes the importance of the new market mechanisms being developed for renewable energy, including the support for a spot market for electricity [6][57] Summary by Sections Market Review - The Shanghai Composite Index decreased by 1.86% while the ChiNext Index increased by 2.16% during the week of September 8-12 [12] - The carbon neutrality sector rose by 2.25%, while the coal sector saw a slight decline of 0.11% [12] Industry News - The report discusses the new guidelines for the continuous operation of electricity spot markets, which aim to enhance market competition and system operation [57] - It also mentions the new action plan for large-scale construction of new energy storage, targeting an installed capacity of over 180 million kW by 2027, with direct investments of approximately 250 billion yuan [58] Investment Recommendations - For thermal power, the report recommends focusing on leading companies in regions with tight supply-demand dynamics, such as Anhui Energy and Huadian International [62] - In hydropower, it suggests monitoring Yangtze Power due to stable electricity prices and regional supply-demand tightness [62] - For nuclear power, it highlights China National Nuclear Power as a key player due to expected increases in electricity generation and stable pricing [62] - In the renewable energy sector, it recommends Longyuan Power as a leading wind power operator [63] - The report also suggests focusing on urban comprehensive operation management service providers like Yuhua Tian [63]