Investment Rating - The report maintains an "Accumulate" rating for the utility sector [1] Core Insights - The Jilin Green Power Direct Connection Project is under public consultation, aiming for a minimum of 30% self-consumed electricity by 2030, increasing to 35% for new projects [4][6] - The State Grid has announced a fixed asset investment of 4 trillion yuan for the 14th Five-Year Plan, a 40% increase from the previous plan, focusing on green energy transition [4][6] - The average electricity purchase price in January 2026 decreased by 8% year-on-year [4][38] - The price of thermal coal at Qinhuangdao port was 695 yuan per ton as of February 6, 2026, a year-on-year decrease of 7.70% [4][46] - The inflow to the Three Gorges Reservoir increased by 65.3% year-on-year, while the outflow decreased by 5.3% [4][54] Industry Data Tracking Electricity Consumption - Total electricity consumption in 2025 was 10.37 trillion kWh, a year-on-year increase of 5.0% [4][13] - The growth rates for different sectors were: primary industry +9.9%, secondary industry +3.7%, tertiary industry +8.2%, and urban-rural residential +6.3% [4][13] Power Generation - Total power generation in 2025 was 9.72 trillion kWh, a year-on-year increase of 2.2% [4][20] - The growth rates for different power sources were: thermal power -1.0%, hydropower +2.8%, nuclear power +7.7%, wind power +9.7%, and solar power +24.4% [4][20] Installed Capacity - New installed capacity in 2025 included: thermal power +94.5 million kW (up 63.8%), hydropower +12.15 million kW (down 11.9%), nuclear power +1.53 million kW, wind power +120.48 million kW (up 50.9%), and solar power +317.51 million kW (up 14.2%) [4][58] Investment Recommendations - For green power, focus on companies like Longyuan Power, Zhongmin Energy, and Three Gorges Energy, with a strong recommendation for Longjing Environmental Protection [4] - For thermal power, consider Huaneng International and Huadian International [4] - For hydropower, Longjiang Power is highlighted due to its low cost and strong cash flow [4] - For nuclear power, China National Nuclear Power and China General Nuclear Power are recommended due to their growth potential [4] - For solar assets and charging pile assets, companies like Southern Power Grid Energy and Longxin Technology are suggested [4]

Investment Rating - The report maintains a positive outlook on the carbon trading market and related sectors, indicating a favorable investment environment for companies involved in power generation and environmental protection [2][9]. Core Insights - The carbon market in China is expanding, with a cumulative trading volume of 865 million tons and a total transaction value of 57.663 billion yuan as of December 31, 2025. The trading volume for the year increased by approximately 24% year-on-year, although the average transaction price fell by 19.23% to 62.36 yuan per ton [2][6]. - The report highlights the government's commitment to carbon reduction, transitioning from energy control to carbon control, which is expected to create investment opportunities in the environmental sector [9]. - Natural gas prices have decreased due to a combination of supply-demand dynamics and seasonal factors, with significant price drops observed in various markets, including a 39.20% decrease in the Henry Hub spot price [2][12]. Summary by Sections 1. Power Sector - The carbon trading market is projected to continue expanding, with key emission units increasing awareness of carbon reduction. The number of units under management reached 3,378, with significant representation from the power, steel, cement, and aluminum industries [2][6]. - Recommendations for investment include companies with stable revenue sources such as Guodian Power, Inner Mongolia Huadian, and China Huaneng, which benefit from diversified income streams [9][11]. 2. Natural Gas Sector - Natural gas prices have seen a significant decline, with the Henry Hub spot price at $4.37/mmBtu, reflecting a 39.20% week-on-week drop. The report notes that the supply-demand balance is improving, contributing to this price decrease [2][12]. - Investment recommendations include companies like Kunlun Energy and New Hope Energy, which are expected to benefit from lower upstream resource costs and improved sales volumes [34][35]. 3. Market Performance Review - The report indicates that the power equipment and gas sectors outperformed the broader market during the review period from February 2 to February 6, 2026 [37]. 4. Company and Industry Dynamics - Recent regulatory updates include the National Development and Reform Commission's notification on improving the capacity pricing mechanism for coal and gas power generation, which aims to enhance revenue recovery for power plants [39][40]. - Key company announcements include performance forecasts from major players like Datang Power and Shanghai Electric, indicating significant year-on-year profit growth [41]. 5. Valuation Tables - The report provides valuation metrics for key companies in the utility sector, with several companies rated as "Buy," indicating strong growth potential and favorable market conditions [43][44].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The macro - economic data shows a mixed picture, with some indicators like GDP growth slowing down while others such as CPI turning positive. The commodity market has different trends, with gold rising and silver experiencing significant price fluctuations. The financial market has various developments including bond market changes and currency exchange rate movements. The stock market shows a shift in capital flow from mainstream wide - based ETFs to specific high - growth theme ETFs [1][2][36]. 3. Summary by Section 3.1 Macro Data - GDP growth in Q4 2025 was 4.5% year - on - year, down from 4.8% in the previous quarter and 5.4% in the same period last year. The manufacturing PMI in January 2026 was 49.3%, slightly up from 49.0% in the previous month. The non - manufacturing PMI: business activity was 49.4%, down from 50.1% in the previous month [1]. - In December 2025, social financing scale was 22075 billion yuan, lower than 35299 billion yuan in the previous month. M0, M1, and M2 growth rates showed different trends, with M0 growth slowing down, M1 growth dropping significantly, and M2 growth slightly increasing [1]. - CPI in December 2025 was 0.8% year - on - year, turning positive from - 0.3% in the previous month. PPI was - 1.9% year - on - year, slightly improving from - 2.3% in the previous month [1]. 3.2 Commodity Investment Reference 3.2.1 Comprehensive - The State Council executive meeting studied policies to promote effective investment, aiming to use various funds and tools to promote major projects in key areas [2]. - In January 2026, the futures market had a good start, with total funds increasing by over 400 billion yuan to 2.57 trillion yuan, and customer equity increasing by about 19% compared to the end of 2025. The number of futures customers also continued to grow [2]. - The Shanghai Gold Exchange adjusted the margin ratio and price limit of some contracts [2]. 3.2.2 Metals - On February 9, spot gold rose 1% to return to the $5000 mark, and spot silver rose nearly 3%. From February 2 to 6, the on - site price of Guotou Silver LOF dropped 40.94% in a single week [4][5]. - China's foreign exchange reserves increased for the sixth consecutive month, and gold reserves increased for 15 consecutive months. In January 2026, global gold ETFs attracted a record $18.7 billion in capital inflows [5][6]. 3.2.3 Coal, Coke, Steel, and Minerals - In late January, the daily output of crude steel of key steel enterprises was 1.935 million tons, down 2.22% month - on - month and 8.25% year - on - year [9]. 3.2.4 Energy and Chemicals - Indian refiners are avoiding purchasing Russian oil for April delivery. The IEA predicts that by 2030, the combined share of renewable energy and nuclear power in the global power structure will rise to 50% [10]. - The EU proposed the 20th round of sanctions against Russia, covering energy, financial services, and trade. The US Energy Secretary will visit Venezuela to understand local oil and gas production [10][11]. 3.2.5 Agricultural Products - The national standard for pre - made food safety is open for public comment, with restrictions on preservatives and shelf - life. The agricultural department will strengthen the regulation of pig production capacity [13]. - APK reduced Ukraine's corn and rapeseed export forecasts. Brazilian soybean sales reached 33.9% of the expected output, lower than 42.4% in the same period last year [13]. 3.3 Financial News Compilation 3.3.1 Open Market - On February 6, the central bank conducted 31.5 billion yuan of 7 - day reverse repurchase operations and 300 billion yuan of 14 - day reverse repurchase operations, with a net withdrawal of 146 billion yuan. This week, there will be 405.5 billion yuan of reverse repurchase and 500 billion yuan of 182 - day repurchase due [16]. 3.3.2 Important News - This week, important domestic and international events include the release of economic data, corporate earnings reports, and international negotiations. The State Council studied policies to promote effective investment, and the central government emphasized the front - loading of macro - policies [17]. - Eight departments jointly issued a document to ban virtual currency - related business activities. The CSRC issued a regulatory guide for the overseas issuance of asset - backed securities tokens [18]. - The Ministry of Commerce will build a policy system to cultivate new service consumption growth points. China's foreign exchange and gold reserves increased, and the Asian and global manufacturing PMIs showed different trends [19][21]. 3.3.3 Bond Market Review - In the inter - bank bond market, bond yields generally declined, and bond futures rose. In the exchange bond market, some bonds had significant price changes. The convertible bond index rose, and the currency market interest rates had different trends [26][27][28]. 3.3.4 Foreign Exchange Market - The on - shore RMB against the US dollar rose 7 points at the 16:30 close, and the RMB central parity rate against the US dollar was adjusted down 20 points. The US dollar index fell 0.36% [31]. 3.3.5 Research Report Highlights - Shenwan Fixed - income believes that the convertible bond market style is solidified, and the supply - demand contradiction is intensified. CITIC Securities expects the market to return to the main lines of domestic policy and economic repair and overseas Fed rate - cut expectations in February [32][33]. - CICC believes that the Fed is unlikely to "shrink the balance sheet" in the short term, and the final rate - cut amplitude may exceed market expectations. CICC Fixed - income believes that the default risk of short - duration urban investment bonds is still low [33][34]. 3.4 Stock Market News - In 2026, the A - share ETF market showed a trend of capital flowing from mainstream wide - based ETFs to theme ETFs. Southbound funds have continuously increased their investment in the Hong Kong stock market, and the Hong Kong IPO market has maintained its popularity [36]. 3.5 Today's Reminder - On February 9, 248 bonds are listed, 118 bonds are issued, 147 bonds are due for payment, and 309 bonds are due for principal and interest repayment [35].

Core Viewpoint - The development of Xiong'an New Area is focused on creating a high-standard, high-quality urban environment that integrates innovation, ecological sustainability, and new industries, aiming to become a model for modern urban development in China [1]. Group 1: New Functions - Xiong'an is implementing a "digital twin city" concept where traffic lights can adjust in real-time based on vehicle flow, showcasing the integration of AI in urban management [2]. - The city operates with a "digital ID" for every building, road, and pipeline, enhancing operational efficiency and governance through a centralized urban computing center [3]. Group 2: New Image - The ecological development strategy prioritizes green spaces, with 70% of the area designated for blue-green spaces, and significant efforts in afforestation and wetland restoration [4]. - The Baiyangdian area has seen improvements in water quality, with the ecological restoration efforts leading to a stable classification of III grade, the best since monitoring began in 1988 [4]. Group 3: New Industries - Xiong'an is fostering a new generation of industries focused on information technology, life sciences, and new materials, with the first "Xiong'an-made" satellite set to launch by October 2025 [6][7]. - The establishment of innovation platforms and supportive policies has led to a 40.5% year-on-year increase in high-tech enterprises, reaching a total of 454 [7]. Group 4: New Talent - The area has attracted over 2,000 employees from major companies like China Huaneng, with comprehensive support services for relocation and integration into the community [8]. - Xiong'an has implemented policies to enhance the living conditions and services for residents, including educational support and housing assistance for high-level talents [8][9]. Group 5: New Mechanisms - The establishment of service teams has streamlined the process for businesses relocating to Xiong'an, significantly reducing bureaucratic delays [10][11]. - A reformed management structure has been introduced to enhance efficiency, with a focus on community-level service delivery [12][13].

◐ 市场监管总局发布两项燃气报警器强制性国家标准。 据央视新闻报道，2月6日了解到，市场监管总局（国家标准委）批准发 布了《可燃气体探测器 第1部分：工业及商业用途点型可燃气体探测器》与《可燃气体探测器 第2部分：家用可燃气体探测器》 两项强制性国家标准。 ◐ 我国完成首个长输管道改输二氧化碳现场试验。 据央视新闻报道，2月5日从国家管网集团获悉，国内首个长输管道改输二氧 化碳现场试验在河南濮阳顺利完成，标志着我国在存量长输管道资源化利用领域完成从理论研究到工程实践的关键跨越，为碳捕 集、利用与封存产业规模化推进提供了可复制、可推广的工程示范。 新闻聚焦 ◐ 我国煤矿智能化建设进入安全高效新阶段。 据央视新闻2月7日报道，从国家能源局了解到，截至202 5年底，全国已建成智能 化煤矿106 6处，智能化产能占比超过65%。煤矿智能化建设向纵深发展，5G、人工智能、工业物联网、智能装备等与煤炭开发 技术深度融合。全国已建成的智能化矿井采煤、掘进工作面单班平均减人比例均超过20%。 国内新闻 ◐ 年景预测：2 02 6年全球"风光水"发电能力将提高。 据新华社报道，中国气象局国家气候中心与全球能源互联网发展合作组 ...

项目位于山南市乃东区境内平均海拔约5050米的高原上，装机规模8万千瓦，配置16兆瓦／64兆瓦时构网型储能系统。项目拟建设安装15台5兆瓦风机和1 台6.25兆瓦的示范机组，该示范机组为西藏单机容量最大风电机组。 2月8日，华能在藏首个风电项目——华能才朋风电项目首批机组正式并网发电，标志着华能在藏新能源发展实现新突破。 据悉，项目预计年发电量超2.23亿千瓦时，每年可节约标煤约6万吨，减少二氧化碳排放约16.4万吨，将有效增强当地能源保障能力。不仅如此，华能才朋 风电项目还应用了全国领先的叶片防雷型监测系统，通过采用光学振动传感器和光纤通讯方式，可从根本上避免传统通讯线缆及金属传感器在雷电环境下 可能引发的附加风险。 责任编辑：罗宗 ...

Investment Rating - The report maintains an "Accumulate" rating for the industry [2] Core Insights - The China Electricity Council forecasts a 5%-6% growth in electricity consumption for 2026, with a significant decline in proxy electricity prices in February [5][12] - Over 80% of provinces and cities reported a year-on-year decrease in proxy electricity prices in February, with Jiangsu, Inner Mongolia, and Liaoning experiencing the largest declines of 29.3%, 25.6%, and 23.1% respectively [5][14] - The report anticipates that by the end of 2026, the installed capacity of solar power will exceed that of coal power for the first time, with renewable energy sources accounting for half of the total installed capacity [5][14] Summary by Sections Industry Outlook - The report predicts that by 2026, the total installed capacity of renewable energy will reach half of the total installed capacity, with solar power surpassing coal power for the first time [5][14] - The total electricity consumption in China is expected to be between 10.9 and 11 trillion kilowatt-hours, reflecting a year-on-year growth of 5%-6% [5][14] Investment Trends - In January 2026, the State Grid completed fixed asset investments of 30.8 billion yuan, a year-on-year increase of 35.1% [6][14] - The Southern Power Grid plans to invest over 24 billion yuan in the first quarter of 2026, marking a year-on-year increase of over 20% [7][14] Proxy Electricity Prices - The report highlights that proxy electricity prices have generally decreased, with significant drops in various regions, indicating a more favorable supply-side environment [5][14] Key Companies and Recommendations - The report suggests focusing on high-dividend coal-fired power leaders and companies with stable electricity prices and integrated coal power operations, such as Huaneng International and Huadian International [8][14] - It also recommends monitoring companies in the wind and solar sectors, including Xintian Green Energy and Longyuan Power [8][14]

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The thermal power sector shows strong performance with stable capacity pricing contributing to profitability [1] - The average earnings growth for 31 public utility companies is projected to increase by 28% year-on-year for 2025, with notable growth from thermal power companies [7] - The introduction of a new capacity pricing mechanism is expected to enhance revenue for thermal power plants, with an estimated increase of 0.016 CNY per kWh in 2026 compared to 2025 [17][21] - The shift towards capacity and auxiliary service revenues is redefining the profitability model for thermal power, moving away from traditional energy pricing [7] Summary by Sections 1. 2025 Earnings Forecast - 31 companies reported earnings forecasts, with significant growth from thermal power companies such as Jinkong Power (+446%), Jiantou Energy (+253%), and Jingneng Power (+104%) [15] - Water power companies like Qianyuan Power saw a nearly 175% increase, while leading hydropower company Yangtze Power maintained a steady 5% growth [15] 2. Capacity Pricing Mechanism - The new capacity pricing mechanism will raise the standard to at least 165 CNY per kW per year, with some provinces like Gansu and Yunnan increasing it to 330 CNY per kW per year [17][21] - The overall capacity compensation market is projected to reach 188 billion CNY in 2026, significantly boosting thermal power revenue [21] 3. Industry Trends - The report highlights a transition in the thermal power sector towards a model that emphasizes capacity and auxiliary services, which are becoming core profit sources [7] - The focus on market capitalization management and dividend commitments from companies like Guodian Power is expected to enhance the valuation of thermal power assets [7] 4. Recent Policy Developments - Recent announcements regarding local electricity pricing mechanisms indicate a trend towards more competitive pricing structures in the market [25][26] - The implementation of new trading rules in various provinces aims to stabilize and enhance the efficiency of electricity markets [25][26] 5. High-Frequency Data Tracking - Recent data shows stable coal prices at Qinhuangdao, with a slight decrease in inventory levels at northern ports [31] - The report notes fluctuations in natural gas prices, with domestic prices remaining higher than at the beginning of the year while international prices have shown volatility [31]

Investment Rating - The report maintains a "Positive" investment rating for the utility sector, indicating a favorable outlook for investment opportunities in this industry [7]. Core Insights - Electricity demand is expected to grow steadily, while the growth rate of new energy installations is anticipated to slow down. The China Electricity Council predicts that the national electricity consumption for 2026 will be between 10.9 to 11.0 trillion kilowatt-hours, representing a year-on-year increase of 5% to 6% [7]. - The report highlights that the overall balance of electricity supply and demand in 2026 is expected to improve, with a reduction in the risk of electricity shortages. The growth rate of new energy installations is projected to decelerate [7]. - The report suggests that the performance expectations for the utility sector have reached a low point, making low-priced utility assets worth considering for investment [7]. Summary by Sections Electricity Demand and Supply - The report forecasts that the total installed power generation capacity will exceed 400 million kilowatts in 2026, with new energy installations expected to surpass 300 million kilowatts [7]. - The electricity supply-demand situation is projected to be generally balanced, with some regions experiencing tighter balances during peak summer and winter periods [7]. Coal Prices and Inventory - Port coal prices have seen a slight increase, while inventory levels have decreased. The report notes that the port coal price for Q5500 grade coal was 695 RMB/ton, reflecting a week-on-week increase of 0.4% [19]. - The report indicates that coal inventory at major ports has decreased by 5.5% week-on-week, with power plant coal consumption also declining by 12% [28]. Performance of Utility Sector - The utility sector index outperformed the broader market indices, with a 0.2% increase compared to a 1.3% decline in the CSI 300 index [38]. - The report identifies specific stocks within the utility sector that are recommended for investment, including JianTou Energy and Huadian International, among others [7]. Water Resource Management - The report notes a slight decrease in the outflow from the Three Gorges Reservoir, with the average outflow for the week being 8,091 cubic meters per second, which is a 9.8% decrease week-on-week [31].

Investment Rating - The report maintains a "Positive" investment rating for the utility sector, indicating a favorable outlook for investment opportunities [7]. Core Insights - Electricity demand is expected to grow steadily, while the growth rate of new energy installations is anticipated to slow down. The China Electricity Council forecasts that the national electricity consumption for 2026 is projected to be between 10.9 to 11.0 trillion kilowatt-hours, representing a year-on-year increase of 5% to 6% [7]. - The report highlights that the overall balance of electricity supply and demand in 2026 is expected to improve, with a reduction in the risk of electricity shortages. The growth rate of new energy installations is expected to decelerate [7]. - The report suggests that low-interest rates and policies encouraging long-term capital investment make dividend assets in the utility sector attractive for long-term allocation [7]. Summary by Sections Electricity Demand and Supply - The forecast for 2026 includes an expected addition of over 400 million kilowatts in new power generation capacity, with more than 300 million kilowatts coming from new energy sources [7]. - The report indicates that the electricity supply-demand situation will be generally balanced, with some regional tightness during peak summer months [7]. Coal Prices and Inventory - Port coal prices have seen a slight increase, while inventory levels have decreased. The report notes that the coal price at Qinhuangdao for Q5500 grade coal is 695 RMB per ton, reflecting a week-on-week increase of 0.4% [19]. - The report also mentions that coal inventory at major ports has dropped, with Qinhuangdao's coal inventory at 5.55 million tons, down 3.2% week-on-week [28]. Performance of Utility Sector - The utility sector has outperformed the broader market indices, with the Shenwan Utility Index rising by 0.2% compared to a 1.3% decline in the CSI 300 Index [38]. - The report identifies specific stocks within the utility sector that are recommended for investment, including Jiantou Energy and Huadian International, among others [7]. Hydropower and Nuclear Power - The report emphasizes the strong growth potential for hydropower and nuclear power, with hydropower having the lowest cost per kilowatt-hour among all power sources [7]. - It suggests that the commercial model for nuclear power is robust, with a strong long-term growth outlook [7]. Wind and Solar Power - The report notes that under carbon neutrality expectations, wind and solar power still have significant growth potential, and it is advisable to select companies with a high proportion of wind energy [7].