Core Viewpoint - The construction of the large-scale renewable energy base in the northern part of the Kubuqi Desert in Inner Mongolia has officially commenced, marking a significant step in the region's renewable energy development [1] Group 1: Project Overview - The Kubuqi Desert northern renewable energy base is the first large-scale "sand-gobi-wasteland" wind and solar power base in Inner Mongolia, with a total investment of 98.8 billion yuan [1] - The project plans to install 8 million kilowatts of solar power and 4 million kilowatts of wind power, along with supporting coal power of 4 million kilowatts and new energy storage of 500 megawatt-hours [1] Group 2: Infrastructure Development - The base will also include the construction of the "Inner Mongolia Ordos to Hebei Cangzhou" ultra-high voltage power transmission corridor, which will have a total length of 699 kilometers and a voltage level of ±800 kilovolts [1]

Investment Rating - The report maintains a positive investment rating for the power and utilities sector, with specific recommendations for various companies based on their performance and market conditions [3][20][21]. Core Insights - The power sector outperformed the broader market, with the public utility sector index rising by 2.19% and the electricity sub-sector by 2.21% during the week ending March 14, 2025 [1][7]. - Significant investments are being made in renewable energy projects, particularly in the "Shagou Desert" area, with major state-owned enterprises planning substantial capacity expansions [2][23]. - The report emphasizes the acceleration of the electricity spot market construction and the establishment of a unified national electricity market system [2][28]. Summary by Sections Weekly Market Review - The public utility sector index closed at 2287.91 points, up 49.11 points, while the electricity sub-sector closed at 3042.41 points, up 65.87 points, indicating strong performance compared to the Shanghai and Shenzhen 300 index, which rose by 1.59% [1][7]. - Among the electricity sub-sectors, photovoltaic power generation saw a rise of 4.68%, followed by thermal services at 3.80%, and comprehensive energy services at 3.57% [14][19]. Investment Recommendations - For thermal power, the report recommends companies like Sheneng Co. and Funeng Co., while cautiously recommending Waneng Power and Huadian International [3][19]. - In the green energy sector, it suggests investing in Three Gorges Energy and keeping an eye on new energy companies like Xintian Green Energy [3][19]. - The report highlights the stable performance of large hydropower companies, recommending Changjiang Electric Power, and notes the growth potential in nuclear power with a recommendation for China Nuclear Power [3][19]. Industry Developments - The report discusses the ongoing construction of the "Shagou Desert" renewable energy base and the promotion of cross-regional energy dispatch projects to enhance energy supply security [2][22]. - It notes that Xinjiang's electricity export volume reached 126.4 billion kilowatt-hours in 2024, marking a continuous increase over five years [2][23]. - The establishment of a national carbon market and the first cross-regional green electricity transaction are highlighted as significant steps towards market integration [28][29].

Investment Rating - The report maintains a positive outlook on the power equipment and new energy industry, highlighting high growth potential and certainty in sectors like energy storage and lithium batteries [5][11]. Core Insights - Energy storage is expected to maintain high prosperity with a cumulative installed capacity CAGR of 37% from 2023 to 2030, emphasizing the importance of selecting leading companies in the sector [5]. - Lithium battery demand is supported by three main factors: policy-driven growth in new energy vehicle demand, the explosion of energy storage, and a recovery in material supply [5]. - The photovoltaic sector is anticipated to rebound in the second half of 2025, driven by high-quality demand and industry collaboration [5]. Summary by Sections Market Review - From February 28 to March 7, 2025, the CSI 300 index increased by 1.39%, the ChiNext index by 1.61%, and the new energy index by 1.16%, ranking 16th among industries [11]. Valuation Analysis - As of March 7, 2025, the price-to-earnings ratio (TTM) for the power equipment and new energy industry is 26.64, which is at 29.69% of its 10-year historical valuation percentile, indicating it is at a historical low [15][17]. Industry Data Tracking - The photovoltaic industry is entering a downcycle in pricing, with significant price drops in silicon materials and components, leading to a pressure on profit margins [20][25]. - As of March 5, 2025, the price of high-grade dense silicon is 38.00 yuan/kg, with single-sided monocrystalline PERC components priced at 0.69 yuan/W [21]. Key News Tracking - The report highlights significant developments in the wind power sector, including a total of 4.12GW of wind power projects awarded in February 2025, with major players like Envision and Goldwind leading the bids [50]. - The report also notes the establishment of a new company by State Grid in Xiong'an, indicating ongoing investments in the energy sector [63].