Core Viewpoint - The Inner Mongolia region has significantly improved its renewable energy consumption targets for 2024, with a completion rate of 29.6%, an increase of 3.2 percentage points year-on-year. The State Grid Inner Mongolia East Power Company has exceeded the national target by 10 percentage points, achieving a completion rate of 38.88% [1][3]. Group 1: Renewable Energy Development - The State Grid Inner Mongolia East Power Company has actively fulfilled its renewable energy consumption responsibilities, contributing to the integration of renewable energy into the grid and supporting various market participants [1][3]. - From 2022 to 2024, the company has consistently exceeded the national renewable energy consumption targets by 10 percentage points each year [1][3]. - The company has organized multiple meetings with government departments and power generation enterprises to discuss and promote renewable energy development [3]. Group 2: Project Implementation and Achievements - The Inner Mongolia region has seen the integration of 26 million kilowatts of wind and solar capacity into the grid, with significant projects such as the first million-kilowatt wind power project coming online in 2022 [3][5]. - In 2023, the company completed the operation of the first batch of large-scale wind and solar base projects, adding 10.58 million kilowatts of new renewable energy capacity [3][5]. - By the end of June, the renewable energy installed capacity in the Mongdong grid reached 57.47%, with a total of 43.7 million kilowatts, accounting for 31.17% of Inner Mongolia's renewable energy capacity [6]. Group 3: Future Projections and Initiatives - The company has set forth 24 measures to enhance the efficient utilization of renewable energy and has published guidelines for distributed photovoltaic grid connection [5]. - In the first half of the year, the region added 3.5 million kilowatts of new renewable energy capacity, a growth of 19.4%, and the new power generation met 4.4 times the new electricity demand [5]. - The company anticipates that the renewable energy capacity in the Mongdong region will reach 11 million kilowatts by the end of the year [6].

Core Viewpoint - The aluminum market is experiencing fluctuations influenced by supply constraints, seasonal demand, and macroeconomic factors, with a focus on price movements and inventory levels. Group 1: Market Performance - As of August 8, 2025, the main contract for Shanghai aluminum futures closed at 20,685 yuan/ton, with a weekly increase of 1.03% [1] - The weekly trading range was between 20,460 yuan/ton and 20,830 yuan/ton, with a reduction in open interest by 11,717 contracts compared to the previous week [1] Group 2: Supply and Inventory - In the fifth week of July 2025, Brazil exported a total of 611,900 tons of bauxite and alumina, a 37.77% increase from 444,100 tons in August of the previous year [2] - As of August 7, the inventory of electrolytic aluminum in the Shanghai Free Trade Zone was 91,300 tons, while the inventory in Guangdong was 20,000 tons, totaling 111,300 tons, which is an increase of 3,800 tons from the previous week [2] Group 3: Industry Insights - According to Jianxin Futures, the supply of bauxite is tightening due to the rainy season in Guinea, but high port inventories and the resumption of production at some mines may limit the extent of the shortage [3] - The domestic electrolytic aluminum production capacity remains high, with seasonal demand still weak, leading to an increase in inventory [3] - Zhonghui Futures reported that the fully loaded cost of China's electrolytic aluminum industry in July was 16,261 yuan/ton, a decrease of 1.7% month-on-month, with the latest inventory of aluminum ingots at 564,000 tons, up by 20,000 tons from the previous week [3]

Investment Rating - The report maintains an "Overweight" rating for the utility sector [1] Core Insights - The National Development and Reform Commission and the National Energy Administration have issued a notice regarding the renewable energy power consumption responsibility weight for 2025, which is set at 34.9%, an increase of 3 percentage points from 31.9% in 2024. The target for 2026 is projected to be 35.8% [4] - A new cross-regional trading mechanism for electricity has been approved, promoting interconnection in the electricity market [4] Industry Data Tracking - **Electricity Price**: The average grid purchase price in May 2025 was 394 RMB/MWh, down 3% year-on-year but up 0.4% month-on-month [39] - **Coal Price**: As of July 11, 2025, the price of thermal coal at Qinhuangdao was 632 RMB/ton, an increase of 8 RMB/ton week-on-week, but down 25.82% year-on-year [44] - **Water Conditions**: The water level at the Three Gorges Reservoir was 157 meters, with inflow and outflow rates decreasing by 18% and 24% year-on-year, respectively [56] - **Electricity Consumption**: Total electricity consumption from January to May 2025 was 3.97 trillion kWh, a year-on-year increase of 3.4% [13] - **Power Generation**: Cumulative power generation from January to May 2025 was 3.73 trillion kWh, with a year-on-year increase of 0.3% [21] - **Installed Capacity**: As of May 31, 2025, the cumulative installed capacity of thermal power reached 1.46 billion kW, with an increase of 4% year-on-year [49] Investment Recommendations - **Thermal Power**: Focus on regional thermal power investment opportunities, recommending companies such as China Power Investment and Huadian International [4] - **Hydropower**: Highlighting the benefits of low-cost hydropower, with a strong cash flow and dividend capacity, recommending companies like Yangtze Power [4] - **Nuclear Power**: Emphasizing growth potential with recent approvals for new units, recommending China National Nuclear Power and China General Nuclear Power [4] - **Green Energy**: Noting improvements in asset quality and growth potential, recommending Longyuan Power and others [4] - **Consumption**: Attention to the smart grid and ultra-high voltage industries, recommending companies involved in these sectors [4]