GF SECURITIES·2026-03-08 10:04Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The government work report for 2026 sets a target to reduce energy consumption per unit of GDP by approximately 3.8%, an increase from the previous target of 3% in 2025. Key initiatives include fostering future energy development, quantum technology, and implementing large-scale intelligent computing clusters [15][16]. - The report emphasizes the importance of establishing a new power system, accelerating the construction of smart grids, and expanding green electricity applications. The focus remains on achieving carbon peak and carbon neutrality goals, with a closer integration of technology and energy [6][15]. - The power sector is characterized as a defensive asset in the AI era, with attributes such as high barriers to entry, long project lifespans, and stable cash flows. The rising coal prices are expected to positively influence electricity pricing, leading to a restructuring of the thermal power business model towards a more utility-like approach [6][15]. - The report highlights several companies to watch, including Huaneng International, Huadian International, and China Power, which are expected to benefit from the ongoing transformation in the utility sector [6][7]. Summary by Sections Section 1: Two Sessions Highlights - The focus is on cultivating future energy and the first mention of computing power and electricity synergy. The government aims to reduce energy consumption per unit of GDP and promote green low-carbon economic development [15][16]. Section 2: Weekly Review - Local governments are implementing electricity market reforms, with various provinces releasing their "14th Five-Year" plans. For instance, Qinghai Province is promoting large-scale solar thermal power development [22][23]. Section 3: Industry High-Frequency Data Tracking - Recent data shows a steady increase in coal prices, with the Qinhuangdao 5500 kcal thermal coal price rising to 755 CNY/ton as of March 6, 2026. This reflects a slight increase of 0.67% compared to the previous week [27][29].