Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 62.64 CNY based on a projected P/E ratio of 54 for 2025 [4][8]. Core Insights - The company's revenue for the first half of 2025 reached 321 million CNY, representing a year-on-year increase of 43.2%, with a net profit attributable to the parent company of 45.97 million CNY, up 53.5% [1]. - The rapid growth in the company's power forecasting business is expected to continue, driven by a surge in new energy installations, with a 55.1% increase in revenue from this segment in the first half of 2025 [7]. - The overall gross margin for the first half of 2025 was 61.4%, down 5.8 percentage points from the previous year, but is anticipated to rebound in the second half as service revenues from new clients begin to contribute [7]. Financial Summary - The company’s projected financials indicate a revenue increase from 456 million CNY in 2023 to 1.333 billion CNY by 2027, with a compound annual growth rate (CAGR) of 22.9% [3]. - Net profit is expected to grow from 84 million CNY in 2023 to 318 million CNY in 2027, reflecting a CAGR of 29.7% [3]. - The earnings per share (EPS) is projected to rise from 0.64 CNY in 2023 to 2.40 CNY in 2027 [3]. Business Performance - The company experienced a significant increase in its power forecasting business, with a revenue of 205 million CNY in the first half of 2025, marking a 55.1% increase year-on-year [7]. - The company’s operating profit is expected to grow from 83 million CNY in 2023 to 343 million CNY in 2027, with a notable increase of 69.9% in 2025 [3]. - The gross margin for the power forecasting business specifically decreased to 61.6% in the first half of 2025, but is expected to recover as service revenues increase [7].

Core Insights - Inner Mongolia's coal production reached 640 million tons in the first half of the year, with approximately 60% directed to major consumption areas in Northeast, North, and East China [1] - The region is focusing on high-standard construction of coal supply guarantee bases, implementing immediate reporting and review for coal mine capacity increases, and promoting the resumption and stable production of coal mines [1] - Inner Mongolia added 11.91 million kilowatts of power generation capacity in the first half of the year, bringing total installed capacity to 270 million kilowatts, with a power generation of 4,167 billion kilowatt-hours [1] - The region exported 165.6 billion kilowatt-hours of electricity, accounting for over one-sixth of the national cross-province electricity exports, with green electricity making up 29.6%, an increase of 9 percentage points from the previous year [1] - Inner Mongolia aims to provide more stable, green, and affordable electricity nationwide, accelerating the construction of existing power projects and controlling unplanned maintenance shutdowns [1] - The region has revised green electricity trading implementation rules, introduced new cross-province green electricity trading mechanisms, and is transitioning the Mongolian West electricity spot market to formal operation [1]

南方区域电力市场是全国统一电力市场的重要组成部分，以区域为主体，交易范围覆盖广东、广西、云 南、贵州、海南等地，市场注册主体数量已超过22万个，涵盖煤电、核电、新能源、水电、气电等全部 类型发电电源和电力用户、售电公司等用户主体，市场化交易电量占比超过70%，实现了电力资源在全 国更大范围内自由流动。南方区域电力市场连续结算试运行启动会当天，超过831家电厂和700多家用户 参与南方区域电力市场，申报电量达22亿千瓦时，其中，501家新能源场站参与报量报价。目前，南方 区域集中式新能源场站基本都加入了电力现货交易。 近日，南方区域电力市场连续结算试运行启动会在广州召开。经过长达35个月的前期准备和12轮的短期 试运行测试，南方区域电力市场正式转入连续结算试运行阶段，从之前只是按周、按月等短期开展交易 变成可以每天不间断交易，双方根据需求随时跨省区买卖电力。转为连续结算后，预计日均交易规模将 达到38亿千瓦时，进一步发挥市场在电力资源配置中的决定性作用，为能源保供和能源优化配置建立新 机制。 作为一种特殊商品，电力难以大量储存，需要供需实时平衡。在传统计划方式下，电价相对固定，难以 反映出电力在特定时空中的真正 ...

Group 1 - The report highlights the establishment of the electricity spot market in Zhejiang, making it the seventh province in China to officially operate such a market, following Shanxi, Guangdong, Shandong, Gansu, Inner Mongolia, and Hubei [3][19][25] - The report indicates that the electricity spot market construction is accelerating nationwide, with a goal to achieve full coverage by the end of 2025, and continuous settlement operations are being implemented [3][19][20] - The report notes that the environmental protection sector, gas sector, electricity sector, and water sector saw respective increases of 3.66%, 3.61%, 1.05%, and 0.82% from August 4 to August 8, with the CSI 300 index rising by 1.23% during the same period [2][12] Group 2 - The report discusses the broad application of hydrogen-based energy and its significant advantages in energy saving and carbon reduction, particularly in the context of decarbonization demands from the shipping and aviation industries [4][31] - It mentions that the National Energy Administration has announced nine pilot projects for green liquid fuel technology, with eight focusing on green methanol and green ammonia, indicating a growing trend in clean fuel development [4][26] - The report emphasizes that while the number of planned green hydrogen fuel projects has been increasing, challenges such as production costs and the maturity of downstream industries are hindering project development [4][31][32] Group 3 - The report recommends specific companies within various sectors, including Jiangsu Guoxin in the thermal power sector, and suggests cautious recommendations for Sheneng Co. and Zhejiang Energy Power [4] - In the nuclear power sector, it cautiously recommends China National Nuclear Power and China General Nuclear Power, while in the green energy sector, it suggests focusing on Three Gorges Energy and Jiangsu New Energy [4] - The report also highlights investment opportunities in the environmental protection sector, recommending Yongxing Co. and Xuedilong, while suggesting attention to Huaguang Huaneng and China Tianying [4]

一是国网、南网建立跨电网经营区常态化交易机制，在网间通道"硬联通"基础上，实现两网电力交 易"软联通"。根据国家发展改革委、国家能源局近期印发的《关于跨电网经营区常态化电力交易机制方 案的复函》，国家电网公司、南方电网公司要在2025年迎峰度夏期间，依托跨电网常态化交易机制实现 电力资源优化配置，更好支撑电力保供。年底前，进一步统一市场规则、交易品种和交易时序，实现跨 电网交易常态化开市。 二是南方区域电力市场开展连续结算运行，5省区发用两侧主体实现"统一交易、同台竞价"。 三是省间现货市场更加成熟，国网经营区26个省份实现常态化余缺互济。今年上半年，我国跨省区 交易电量超过6700亿千瓦时，也就是说，电力市场每交易4度电，就有1度通过跨省区交易实现。 建设全国统一电力市场是深化电力体制改革的关键任务，也是构建新型电力系统的重要支撑。 记者从国家发展改革委了解到，2024年，我国市场化交易电量6.18万亿千瓦时，占全社会用电量的 63%左右。今年以来，全国统一电力市场体系建设取得一系列重大标志性成果。 国家发展改革委体制改革综合司司长王任飞介绍，电力资源在更大范围优化配置的市场机制实现突 破： 新华社北京8月 ...

8月，国网蒙东电力将持续深化市场运营数据监测分析工作，常态化开展日复盘、周分 析机制，进一步完善日前、实时调度运行与现货出清工作的衔接机制。同时，配合政府主管 部门开展规则合规性审定流程，推动蒙东现货规则体系尽快正式发布，为蒙东现货市场规范 运行提供制度保障。 【责任编辑：王少晨 】 7月31日24时，国网蒙东电力圆满完成蒙东电力现货市场首次整月结算试运行任务，并 同步启动8月份整月结算试运行，实现双月不间断结算试运行，为后续现货市场连续结算试 运行奠定了坚实基础。 7月结算试运行期间，国网蒙东电力现货系统出清稳定，电网运行平稳，取得显著成 效。期间，蒙东直调机组及东北3台机组全容量参与市场，负荷高峰期火电机组持续满发支 撑保供，通过价格信号引导配建储能、独立储能集中放电，最大放电功率达117万千瓦，有 力支撑电力保供。受夏季用电负荷显著增长和7月小风季影响，本轮结算试运行实时出清均 价较上轮显著提升，环比提升83.54%，价格信号充分反映供需情况，符合发电侧主体收益 预期。此外，该公司通过优化调频补偿机制和新能源富余发电能力转移机制，最大化调用调 频资源，有效抑制实时平衡偏差，关口联络线日均合格率突破90% ...

Group 1 - The core viewpoint of the report is optimistic about the public utility sector, maintaining a positive outlook for the industry [1][2] - The report highlights the increasing pressure on electricity consumption and supply differentiation, indicating a shift from tight supply to a balanced state during the 14th Five-Year Plan [6][12] - The report emphasizes the need to focus on high-quality wind power assets due to significant yield differentiation in green electricity [5][42] Group 2 - The report projects that during the 15th Five-Year Plan, the national electricity supply will transition from tight to balanced, with coal power utilization hours expected to decline [7][13] - It forecasts that the total electricity generation will reach 131,399 billion kilowatt-hours by 2030, with an average annual growth rate of 5% [10][14] - The report notes that the new energy sector has seen a historic increase in installed capacity, with wind and solar power installations reaching 52GW and 213GW respectively in the first half of 2025, both up 105% year-on-year [22][15] Group 3 - The report discusses the severe pressure on the consumption of new energy, indicating that the utilization hours may be a more accurate indicator than utilization rates [23][28] - It highlights that the utilization rates for wind and solar power have been declining, with some regions falling below the 90% target [27][33] - The report indicates that the construction of the electricity spot market is accelerating, aiming to reflect real-time supply and demand through price signals [39][34] Group 4 - The report outlines the impact of the 136 document, which promotes the full market entry of new energy, marking a new cycle and starting point for the industry [43][44] - It emphasizes the importance of traditional power sources in ensuring energy security amidst the growing demand from new electricity consumers [13][41] - The report suggests that investment strategies should focus on stability and innovation, balancing traditional and new energy investments [5][42]

Core Viewpoint - The company is currently focusing on participating in the frequency regulation service market with its independent energy storage station in Qingyuan, while also considering additional revenue sources in the future [1] Group 1 - The independent energy storage station primarily engages in frequency regulation services [1] - There has been a small amount of capacity leasing previously [1] - The company has a subsidiary with a power sales license, indicating its interest in the electricity spot market [1] Group 2 - The company is monitoring the electricity spot market and may consider increasing revenue sources at the independent energy storage station when appropriate [1]

Group 1 - The maximum power load of Guangxi Power Grid reached 35.234 million kilowatts, a historical high, increasing by 2.61% compared to two years ago [1] - The average market clearing price has significantly increased, with the market clearing price rising by 49.9% and the real-time market clearing price increasing by 99.9% compared to the average of the previous 18 days [1] - The power generation capacity in the region increased by 2.74 million kilowatts compared to the average of the previous 18 days, enhancing supply capabilities [1] Group 2 - Guangxi plays a crucial role as an important hub for "West-to-East Power Transmission," actively integrating into the Southern regional electricity market and the national unified electricity market [2] - As of July 7, the average daily hydropower generation in Guangxi exceeded 12 million kilowatts, a year-on-year increase of 65%, setting a historical record for the same period [2] - During the trial operation of continuous settlement, the National Energy Group Guangxi Power Company participated in the spot market trading, emphasizing the importance of spot prices in driving production and operational decisions [2] Group 3 - The spot market effectively reflects and guides market prices, leading to a decrease in medium- and long-term trading prices, with Guangxi experiencing the largest decline nationwide [3] - The continuous settlement trial in the spot market has revealed the surplus supply situation in Guangxi's electricity market, aligning medium- and long-term trading prices with spot prices [3] Group 4 - By June 2025, Guangxi's installed capacity for renewable energy reached 53.29 million kilowatts, a year-on-year increase of 70.7%, accounting for 48.5% of the total installed capacity in the region [4] - Guangxi has actively promoted renewable energy projects to participate in the electricity market, breaking the "quantity and price guarantee" model [4] - As of now, 403 renewable energy trading units have registered and engaged in trading, with 196 renewable energy stations participating in the spot market on the day of the continuous settlement trial [4] Group 5 - Guangxi Power Grid Company has invested significant resources to develop the electricity spot market, successfully completing 12 rounds of trial operations and 88 days of cumulative operation [5] - The continuous settlement trial has demonstrated the stability of the electricity market in Guangxi, with significant results in supply assurance and price stabilization [5] - The company plans to further innovate and improve market mechanisms, promoting the full participation of centralized renewable energy in the spot market [5]

Group 1: Power Generation Performance - In Q2 2025, the company achieved a power generation of 11.615 billion kWh, a year-on-year increase of 0.67% [1] - For the first half of 2025, the total power generation was 24.573 billion kWh, a year-on-year decrease of 3.66% [1] - The total on-grid electricity for the first half of 2025 was 22.837 billion kWh, a year-on-year decrease of 3.52% [1] Group 2: Market Conditions and Strategy - The coal market in the first half of 2025 was characterized by a balanced supply and demand, leading to a downward trend in prices [2] - The company adopted a strategy focused on market orientation and efficiency, enhancing thermal power marketing and optimizing fuel procurement management [1] - The company is also diversifying financing to optimize debt structure and reduce funding costs [1] Group 3: Coal Supply and Price Forecast - The main sources of coal procurement are local areas in Hebei, Shanxi, Shaanxi, and Inner Mongolia [2] - It is anticipated that coal prices will continue to decline in the second half of 2025 due to the ongoing release of domestic thermal coal production capacity [2] Group 4: Project Development and Expansion - Ongoing projects include the 2×66 MW expansion at Xibaipo Power Plant and the 2×35 MW project at Renqiu Thermal Power Plant, both expected to be operational by 2026 [2] - The company is also increasing investment in offshore wind projects, including the 250 MW Tangshan Jiantou Xiangyun Island project [2] Group 5: Dividend Policy - The company has established a stable profit distribution policy, increasing the cash dividend from 30% to 50% of the distributable profits starting from 2024 [2]