电改深化加速低效出清，煤电一体化成本优势凸显

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the industry [7] Core Insights - The report highlights the acceleration of the unified electricity market, leading to the differentiation of coal power assets. The establishment of a nationwide unified electricity market by 2035 is expected to optimize resource allocation and enhance market efficiency [2][24] - The introduction of differentiated electricity pricing is accelerating the exit of inefficient production capacities, thereby improving the supply structure of the industry. This shift is expected to enhance profitability and competitive order within the sector [26][29] - Coal power integrated enterprises are expected to gain a competitive edge due to their lower marginal costs, allowing them to capture market opportunities as inefficient capacities are phased out [3][30] Summary by Sections 1. Unified Electricity Market Development - The unified electricity market is progressing, with a focus on deepening the integration of coal and electricity assets. The market structure is evolving from regional competition to a national framework, enhancing the competitive advantages of low-cost and high-efficiency coal power units [2][20] - The implementation of differentiated pricing is set to optimize the supply-demand balance, pushing inefficient power generation to exit the market and improving overall industry profitability [26][29] 2. Market Performance Review - From February 14 to February 27, the Shanghai Composite Index rose by 1.98%, while the public utility index increased by 5.69%, outperforming the Shanghai Composite by 3.71 percentage points [4][37] 3. Market Information Tracking - As of February 25, the average price of thermal coal in the Bohai Rim was reported at 685 RMB/ton, reflecting a slight increase from the previous period [5][11] - The report also tracks electricity prices, noting that in February 2026, the average transaction price in Jiangsu was 312.8 RMB/MWh, down 20% from the benchmark price [11] 4. Industry Dynamics - The State Council has issued implementation opinions to enhance the unified electricity market, aiming for a market where 70% of electricity consumption is traded through market mechanisms by 2030 [8][24] - The report emphasizes the importance of coal power as a stabilizing force in the energy system, particularly in the context of increasing renewable energy integration [24][30] 5. Investment Portfolio and Recommendations - The report suggests focusing on coal power integrated companies such as Shaanxi Energy, Xinji Energy, and Huaihe Energy, which are expected to benefit from the market's evolution and the exit of inefficient capacities [3][30]