Orient Securities·2026-02-01 10:24Investment Rating - The report maintains a "Positive" outlook on the utility sector, indicating a favorable investment environment for the industry [8]. Core Insights - The introduction of a new capacity pricing mechanism for new energy storage and the gradual improvement of a diversified pricing system are key developments in the utility sector [8]. - The report highlights that coal and gas capacity pricing mechanisms will be refined, and a new independent capacity pricing mechanism for energy storage will be established [8]. - The report suggests that the coal and gas capacity pricing recovery ratio will remain unchanged at 50%, which is expected to enhance project profitability in regions lacking provincial energy storage pricing [8]. - The report notes that the performance expectations for the utility sector have reached a low point, making low-priced utility assets worth considering for investment [8]. Summary by Sections Industry Dynamics - The report indicates that the average spot electricity price in Guangdong increased by 70.2% year-on-year, reaching 355 RMB/MWh [11]. - In Shanxi, the average spot electricity price rose by 33.7% year-on-year to 323 RMB/MWh [13]. - The report mentions a slight rebound in coal prices, with the Qinhuangdao Q5500 coal price at 692 RMB/ton, up 1.0% week-on-week [16]. - Coal inventories at major ports decreased by 4.1% week-on-week, indicating a tightening supply [25]. Performance Review - The utility sector index fell by 1.7%, underperforming the CSI 300 index by 1.8 percentage points [34]. - Among sub-sectors, hydropower showed the highest weekly increase of 0.3%, while solar power experienced a decline of 4.5% [36]. Investment Recommendations - The report recommends several stocks for investment, including: - For thermal power: Jiantou Energy, Huadian International, Guodian Power, Huaneng International, and Waneng Power [8]. - For hydropower: Yangtze Power, Guiguan Power, Chuanwei Energy, and Huaneng Hydropower [8]. - For nuclear power: China General Nuclear Power [8]. - For wind and solar: Longyuan Power, focusing on companies with a high proportion of wind energy [8].