Investment Rating - The industry investment rating is maintained as "Increase" [5] Core Insights - The construction of a new power system is expected to alleviate renewable energy consumption issues, with pilot projects focusing on seven key areas including power and computing collaboration and coal power transformation [2][11] - The summer peak demand is anticipated to boost electricity consumption, with coal prices dropping to 618 RMB/ton, enhancing profitability for thermal power generation [3][12] Summary by Sections Industry Outlook - The National Energy Administration has initiated pilot projects for a new power system, emphasizing collaboration between computing and electricity, large-scale renewable energy delivery, and next-generation coal power [2][11] - High-temperature warnings have been issued in multiple regions, indicating a potential increase in electricity demand during the summer peak, with a projected maximum load increase of approximately 100 million kilowatts year-on-year [3][12] Market Performance - The Shanghai Composite Index closed at 3385.36 points, up 1.13%, while the CSI 300 Index closed at 3873.98 points, up 0.88%. The CITIC Power and Utilities Index fell by 0.12%, underperforming the CSI 300 by 1.00 percentage points [58][59] Key Companies and Recommendations - Recommended stocks include Huadian International, Huaneng International, Datang Power, and JianTou Energy for thermal power, as well as Qingda Environmental Protection for coal power transformation equipment [3][8] - In the renewable energy sector, focus on undervalued green power operators, particularly in Hong Kong, such as Xintian Green Energy and Longyuan Power [3][8]

Core Viewpoint - The article outlines the initiation of pilot projects for the construction of a new power system, focusing on innovative technologies and models to enhance the integration and efficiency of renewable energy sources [1]. Group 1: Overall Requirements - The pilot projects will focus on seven key directions: grid-structured technology, system-friendly renewable power plants, smart microgrids, synergy between computing power and electricity, virtual power plants, large-scale high-proportion renewable energy delivery, and new-generation coal power [2]. - The approach will be tailored to local conditions, encouraging the adoption of new technologies and models while ensuring comprehensive management throughout the project lifecycle [2]. Group 2: Pilot Directions - **Grid-Structured Technology**: Aimed at areas with high renewable energy integration, this technology will address issues like reduced short-circuit capacity and enhance the stability of power supply [3]. - **System-Friendly Renewable Power Plants**: New or upgraded plants will improve system compatibility, with a target of increasing output reliability by over 10% during peak hours [4]. - **Smart Microgrids**: These will enhance self-regulation and balance capabilities, increasing the proportion of self-consumed renewable energy [5]. - **Synergy Between Computing Power and Electricity**: This involves planning for data centers' green electricity needs and optimizing the use of renewable resources [6]. - **Virtual Power Plants**: These will aggregate distributed energy resources to enhance flexibility and support renewable energy consumption [7]. - **Large-Scale High-Proportion Renewable Energy Delivery**: Focused on specific regions, this aims to improve the delivery of green electricity through advanced technologies [8]. - **New-Generation Coal Power**: This will promote cleaner and more efficient coal power generation, aligning with carbon reduction goals [9]. Group 3: Organization and Implementation - **Pilot Application**: Applications for pilot projects will be organized by provincial energy authorities or central enterprises, with a focus on feasibility and technical economics [10]. - **Pilot Review**: A third-party professional organization will evaluate applications based on established criteria, selecting projects for the first batch of pilots [11]. - **Project Implementation**: Local energy authorities and project units must adhere to the approved plans, with any significant changes requiring further approval [12]. Group 4: Support Policies - Supportive policies will be developed to facilitate pilot projects, including funding channels and prioritization of coal power projects that align with renewable energy initiatives [13]. - The results of the pilot projects will be integrated into the evaluation system for the new power system, influencing future assessments [14].

Group 1 - The National Energy Administration has initiated pilot projects for the construction of a new power system, focusing on seven key areas including grid technology, system-friendly renewable energy plants, smart microgrids, and virtual power plants [1] - Emphasis is placed on the collaboration between computing power and electricity, particularly in regions with abundant energy resources, to enhance the green electricity supply for data centers and improve energy efficiency [1] - The new generation of coal power is encouraged to meet clean carbon reduction and efficient adjustment indicators, with pilot projects supported by favorable policy environments and funding channels [2] Group 2 - A recent meeting in Kunming highlighted the need for a unified national electricity market, addressing new challenges and tasks while promoting the continuous operation of electricity spot markets across provinces [3] - The meeting also focused on enhancing regulatory capabilities and implementing innovative digital supervision practices to ensure the stable operation of the electricity market [3]

Group 1: Industry Outlook - The coal power industry is expected to transition from a "base load power source" to a "flexible adjustment power source" through technological innovation and policy guidance, as part of the new power system construction [1] - By 2025, China's total electricity consumption is projected to reach 10.4 trillion kWh, with a year-on-year growth of approximately 6% [1] Group 2: Financial Performance - In Q1 2025, the company achieved a net profit of 299 million CNY, representing a year-on-year increase of 46.4%, attributed to falling coal prices and internal efficiency improvements [2] - The company has maintained a consistent dividend policy since its listing in 1997, with cumulative cash dividends amounting to nearly 4.6 billion CNY [2] Group 3: Shareholder Information - As of April 30, 2024, the total number of shareholders is 96,394 [2] - The proposed dividend for 2024 is 1.50 CNY per 10 shares, totaling a distribution of 326 million CNY [3] Group 4: Dividend Policy - The company has a commitment to reasonable returns for investors, with the last three years' cumulative cash dividends accounting for 130.82% of the average annual net profit, significantly exceeding the regulatory requirement of at least 30% [2] - Future dividend plans will adhere to the guidelines set by the China Securities Regulatory Commission and the company's internal regulations [3]

Group 1: Industry Outlook - The coal power industry is expected to transition from a "base load power source" to a "flexible adjustment power source" through technological innovation and policy guidance, as part of the new power system construction [2] - National electricity consumption is projected to reach 10.4 trillion kWh in 2025, with a year-on-year growth of approximately 6% [2] Group 2: Financial Performance - In Q1 2025, the company achieved a net profit of 299 million CNY, a year-on-year increase of 46.4%, attributed to falling coal prices and internal efficiency improvements [3] - The total number of shareholders as of April 30, 2024, was 96,394 [3] Group 3: Dividend Policy - The company plans to distribute a cash dividend of 1.50 CNY per 10 shares, totaling 326 million CNY, as part of its 2024 dividend plan [4] - Over the last three years, the cumulative cash dividends amounted to 4.6 billion CNY, representing 130.82% of the average annual net profit, significantly exceeding the regulatory requirement of at least 30% [3]

Group 1: Report's Core View - As of April 25, 2025, the closing price of the national carbon market carbon emission allowance (CEA) was 75.76 yuan/ton, down 13.12% from the previous month and 26.02% from the same period last year. The average trading volume of national carbon emission allowances in the past 30 trading days was 232,000 tons, with a month-on-month increase of 113,000 tons [1][13][56]. - As of April 27, 2025, the 5500K quotation at Qinhuangdao Port was 656 yuan/ton, 11 yuan/ton lower than the end of last month and 107 yuan/ton lower than the end of last year. The bearish factors of thermal coal have accumulated, and the price center has continued to decline this year, with a pessimistic market atmosphere [1][17][56]. - In 2024, the cumulative apparent consumption of natural gas was 423.465 billion cubic meters, an increase of 33.43 billion cubic meters compared to last year; the cumulative apparent consumption of fuel oil was 51.9942 million tons, a decrease of 11.0283 million tons compared to last year; the cumulative apparent consumption of coke was 481.0804 million tons, a decrease of 2.9669 million tons compared to last year [1][28][56]. - In March 2025, the total social electricity consumption was 828.2 billion kWh, a year-on-year increase of 4.8%; from January to March, the cumulative growth rate of the total social electricity consumption dropped to 2.5%, compared with 9.8% in the same period last year. In March, the power generation of industrial enterprises above the designated size was 778 billion kWh, a year-on-year increase of 1.8%; from January to March, the power generation was 2269.9 billion kWh, a year-on-year decrease of 0.3%. In the first quarter of this year, the total power generation of four clean energy sources was 737.05 billion kWh, accounting for 32.5% of the total power generation, an increase of 4.1 percentage points compared to the same period last year [2][57][58]. Group 2: Industry News - In March 2025, the National Energy Administration issued 174 million green certificates, a year-on-year increase of 9.39 times, including 144 million tradable green certificates, accounting for 82.26%. From January to March 2025, a total of 662 million green certificates were issued, including 456 million tradable green certificates. As of March 2025, a total of 5.617 billion green certificates had been issued nationwide, including 3.835 billion tradable green certificates [7]. - In March 2025, 118 million green certificates were traded nationwide, including 21.87 million green power trading green certificates. From January to March 2025, 200 million green certificates were traded nationwide, including 60.44 million green power trading green certificates. As of March 2025, a total of 753 million green certificates had been traded nationwide, including 298 million green power trading green certificates [8]. - In the first quarter of 2025, the newly installed capacity of wind and photovoltaic power generation in China reached 74.33 million kilowatts, with a cumulative installed capacity of 1.482 billion kilowatts, exceeding the thermal power installed capacity (1.451 billion kilowatts) for the first time. In the first quarter, the total power generation of wind and photovoltaic power reached 536.4 billion kWh, accounting for 22.5% of the total social electricity consumption, an increase of 4.3 percentage points compared to the same period last year [9]. - The National Energy Administration issued the "Implementation Plan for the Special Action of Upgrading the New Generation of Coal-fired Power (2025 - 2027)". The next steps include publicizing the plan, guiding provincial energy authorities to formulate work plans, and tracking the progress and effectiveness of the special action [10][11][12]. Group 3: National Carbon Market Carbon Emission Allowance (CEA) - As of April 25, 2025, the closing price of CEA was 75.76 yuan/ton, down 13.12% from the previous month and 26.02% from the same period last year. In the past 30 trading days, the average trading volume was 232,000 tons, with a month-on-month increase of 113,000 tons [13]. Group 4: Carbon Price Influence Factor Analysis 4.1 Energy Price - As of April 27, 2025, the port quotations of thermal coal at Qinhuangdao Port decreased compared to the end of last month and last year. The pithead prices of thermal coal in Shanxi, Shaanxi, and Inner Mongolia also decreased or remained flat compared to the end of last month and last year. The coke prices increased slightly compared to the end of last month but decreased compared to the end of last year. The LNG price index decreased, and the European natural gas spot price decreased [15][17][18]. 4.2 Energy Consumption - In 2024, the apparent consumption of natural gas increased, while the apparent consumption of fuel oil and coke decreased compared to last year [28]. 4.3 Domestic Carbon Emission Structure - China's total carbon emissions exceed 10 billion tons, accounting for about one-third of the world's total. In 2021, the "Electricity, Steam, and Hot Water Production and Supply" industry had the largest carbon emissions, followed by the "Ferrous Metal Smelting and Rolling Processing Industry" and the non-metallic mineral industry. By energy type, coal consumption accounted for 67.2% of total emissions [32][35][40]. 4.4 Total Social Electricity Consumption - In March 2025, the total social electricity consumption was 828.2 billion kWh, a year-on-year increase of 4.8%. From January to March, the cumulative growth rate of total social electricity consumption was 2.5%. The electricity consumption of the first, second, third industries, and urban and rural residents all increased year-on-year [43]. 4.5 Power Generation Structure - In the first quarter of 2025, the power generation of industrial enterprises above the designated size decreased by 0.3% year-on-year. The proportion of thermal power generation decreased by 4.1 percentage points, while the total power generation of four clean energy sources increased by 16.2% year-on-year, accounting for 32.5% of the total power generation, an increase of 4.1 percentage points compared to the same period last year [47][48][58]. Group 5: Conclusion - The CEA price decreased, and the trading volume increased in the carbon market. The thermal coal price continued to decline, and the market atmosphere was pessimistic. The apparent consumption of natural gas increased, while that of fuel oil and coke decreased in 2024. The growth rate of total social electricity consumption slowed down, and the power generation of industrial enterprises above the designated size decreased slightly. The proportion of clean energy power generation increased [56][57][58].

Investment Rating - The report maintains an "Overweight" rating for the utility sector, indicating an expectation that the industry index will outperform the market index by more than 10% over the next six months [1]. Core Insights - In March, the total electricity consumption in the country increased by 4.8% year-on-year [1]. - The report highlights that the State Development and Reform Commission has issued guidelines to accelerate the development of virtual power plants, aiming for a national adjustment capacity of over 20 million kilowatts by 2027 and 50 million kilowatts by 2030 [4][44]. - The report notes a decline in average coal prices year-on-year, suggesting a favorable environment for thermal power companies [4][42]. Summary by Sections 1. Market Review - As of April 17, the Shenwan Utility Index fell by 1.0% over the past two weeks, outperforming the CSI 300 Index by 1.3 percentage points, ranking 9th among 31 Shenwan industries [11]. - Year-to-date, the Shenwan Utility Index has decreased by 3.0%, also outperforming the CSI 300 Index by 1.2 percentage points, ranking 17th among 31 industries [11]. 2. Industry Valuation - As of April 17, the valuation of the Shenwan Utility sector is at 17.7 times earnings, below the one-year average [17]. - The sub-sector valuations include: - Photovoltaic power: 78.8 times - Hydropower: 20.5 times - Integrated energy services: 19.6 times - Wind power: 19.4 times - Thermal services: 18.3 times - Gas: 17.9 times - Thermal power: 12.5 times [17][18]. 3. Industry Data Tracking - As of April 17, the average price of Q6000 coal at the pit in Yulin, Shaanxi, was 614 yuan per ton, down 0.3% from the previous value [32]. - The average price of Q5500 coal at Qinhuangdao port was 667 yuan per ton, down 0.2% from the previous value [32]. 4. Key Industry News - The report mentions several important announcements, including the release of the "New Generation Coal Power Upgrade Special Action Implementation Plan (2025-2027)" by the State Development and Reform Commission [4][41]. - The report also highlights the issuance of 174 million green power certificates in March 2025, a year-on-year increase of 9.39 times, with 82.26% being tradable [44]. 5. Industry Weekly Viewpoint - The report suggests focusing on thermal power companies such as Huadian International (600027), Guodian Power (600795), and Hubei Energy (000883) due to their strong performance in the current market environment [42]. - In the gas sector, it recommends attention to companies like Xin'ao Co. (600803), Jiufeng Energy (605090), and New Natural Gas (603393) [42].