Core Viewpoint - The recent rumors regarding the failure of the "anti-involution" policy in the photovoltaic industry led to significant stock declines, but subsequent clarifications from industry associations helped stabilize the market, indicating a strong commitment to reversing negative competition in the sector [1][5][18]. Group 1: Market Reaction - Following the spread of rumors, the photovoltaic sector experienced a sharp decline, with companies like Jingao Technology and Tongwei Co. seeing drops of 6.84% and 6.06% respectively [5]. - The China Photovoltaic Industry Association issued a statement to refute the rumors, emphasizing the importance of maintaining industry integrity and combating malicious market manipulation [1][5]. Group 2: Anti-Involution Policy - The term "involution" has become synonymous with the photovoltaic industry since 2023, characterized by homogenized expansion and price wars amid slowing installation demand [7]. - The core of the current policy focuses on "price protection" and "volume control," aiming to eliminate below-cost sales and facilitate the exit of outdated production capacities to restore market balance [9][10]. Group 3: Price Recovery - Initial results from the price protection measures show positive trends, with significant price increases in key materials: silicon materials up 33.33%, silicon wafers up 17.39%, and battery cells up 8.92% [10]. - The recovery of prices is expected to improve profitability for companies, laying a solid foundation for valuation increases [20]. Group 4: Capacity Control - The silicon material segment is crucial for addressing overcapacity issues, as it has the least production flexibility and is capital-intensive [11][12]. - Companies are beginning to implement production and sales controls, with expectations to limit annual output to 1.4 million tons, aligning with earlier targets [14]. Group 5: Asset Revaluation - The anti-involution policies are transitioning from expectation to substantial implementation, driving the revaluation of assets in the photovoltaic sector [18][19]. - Companies like Tongwei Co., GCL-Poly Energy, and Daqo New Energy are expected to attract market attention as they benefit from reduced silicon material production and subsequent price increases [22]. Group 6: Technological Advancements - The Ministry of Industry and Information Technology has initiated efforts to accelerate the development of advanced photovoltaic technologies, such as perovskite solar cells, which have the potential for higher efficiency compared to traditional silicon cells [23]. - Recent announcements from companies like GCL-Poly regarding the commercialization of perovskite technology indicate a shift towards innovative production methods, which could lead to significant market opportunities [24].

Core Viewpoint - The recent notice from the National Development and Reform Commission and the Energy Administration aims to enhance the price mechanism to promote the nearby consumption of renewable energy, requiring that the annual self-consumption of renewable energy should account for no less than 60% of the total available generation capacity and 30% of total electricity consumption, with new projects starting from 2030 required to meet at least 35% [1] Investment Highlights - The notice recommends commercial rooftop photovoltaics and highlights the potential of companies like Ankerui. It emphasizes the need for projects to have metering conditions and for grid companies to install metering devices to accurately measure electricity data at various stages [1] - The bidding for large-scale energy storage in August exceeded expectations, with a recommendation for storage operators like Southern Grid Storage. The combination of AI and the finalized document No. 136 is expected to drive the economic viability of large-scale storage, with domestic demand exceeding expectations [1] - Southern Grid Storage is positioned to benefit significantly as a large-scale storage operator within the Southern Grid, with a projected cumulative installed capacity of 654,200 kW and 1,298,300 kWh by the first half of 2025, alongside 10.28 million kW of pumped storage capacity [1] Industry Core Data Tracking - Electricity prices saw a 2% year-on-year decrease and a 1.3% month-on-month increase in August 2025. The price of thermal coal was reported at 680 RMB/ton as of September 12, 2025, reflecting a week-on-week increase of 1 RMB/ton [2] - The water level at the Three Gorges Reservoir was recorded at 162.88 meters, with inflow and outflow rates showing significant year-on-year increases of 33.59% and 198.15%, respectively [2] - Total electricity consumption from January to July 2025 reached 5.86 trillion kWh, a year-on-year increase of 4.5%, with various sectors showing different growth rates [2] - Cumulative power generation for the same period was 5.47 trillion kWh, with a year-on-year increase of 1.3%, while installed capacity additions in the first half of 2025 showed significant growth in renewable sources like wind and solar [2] Investment Recommendations - Companies within the Southern Grid system, such as Southern Grid Energy, Southern Grid Storage, and Southern Grid Technology, are recommended for investment opportunities [3] - The green electricity sector is expected to see improvements in asset quality and growth potential, with specific companies highlighted for attention [3] - The value of photovoltaic assets and charging station assets is anticipated to be reassessed positively due to regulatory support and market dynamics [3] - Investment opportunities in thermal power, particularly in the Beijing-Tianjin-Hebei region, are also recommended [3] - The hydropower sector is expected to benefit from rising prices and low costs, with strong cash flow and dividend capabilities [3] - The nuclear power sector is projected to grow, with multiple approvals for new units expected to enhance profitability and dividends [3]