Investment Rating - The report maintains an "Overweight" rating for the utility sector [1]. Core Insights - The weighted average price of electricity in Jiangsu for September 2025 was 319.48 RMB/MWh, which is lower than market expectations. The total electricity traded was 8.111 billion kWh, with various sources contributing different amounts and prices [4]. - The report highlights a continued increase in electricity demand, with a 3.7% year-on-year growth in total electricity consumption for the first half of 2025 [15]. - The report suggests investment opportunities in green energy, photovoltaic assets, charging station assets, thermal power, hydropower, and nuclear power, emphasizing the potential for value reassessment in these areas [4]. Summary by Sections 1. Market Review - The SW utility index decreased by 0.67% from August 25 to August 29, 2025, underperforming compared to the ChiNext index [9]. - The top five gainers included Zhaoxin Co. (+33.6%) and Tianlun Gas (+13.2%), while the top five losers included ST Shengda (-9.5%) and Jiawei New Energy (-7.9%) [13]. 2. Electricity Sector Tracking 2.1. Electricity Consumption - Total electricity consumption in H1 2025 reached 4.84 trillion kWh, reflecting a 3.7% year-on-year increase [15]. - The growth rates for different sectors were: primary industry (+8.7%), secondary industry (+2.4%), tertiary industry (+7.1%), and urban-rural residential consumption (+4.1%) [15]. 2.2. Power Generation - Total power generation in H1 2025 was 4.54 trillion kWh, with a year-on-year increase of 0.8%. However, thermal and hydropower generation saw declines of 3.1% and 2.9%, respectively [23]. 2.3. Electricity Prices - The average electricity purchase price in August 2025 was 388 RMB/MWh, down 2% year-on-year but up 1.3% month-on-month [41]. 2.4. Thermal Power - The price of thermal coal at Qinhuangdao port was 690 RMB/ton as of August 29, 2025, a decrease of 17.76% year-on-year [46]. - The cumulative installed capacity of thermal power reached 1.47 billion kW, with an increase of 4.7% year-on-year [49]. 2.5. Hydropower - The water level at the Three Gorges Reservoir was 162.19 meters, which is normal compared to previous years. Inflow and outflow rates increased by 35.48% and 47.46% year-on-year, respectively [55]. 2.6. Nuclear Power - In 2024, 11 new nuclear units were approved, indicating a positive trend in the development of nuclear power [67]. 2.7. Green Energy - New installations of wind and solar power in H1 2025 increased by 99% and 107% year-on-year, respectively [4]. 3. Investment Recommendations - The report recommends focusing on companies like Changjiang Electric for high dividend yield assets, and suggests monitoring companies involved in green energy and charging stations for potential value reassessment [4].

Core Viewpoint - The electricity consumption growth in January and February 2025 was modest at 1.3%, primarily due to warm winter temperatures and a high base effect from the leap year in 2024, leading to a decline in electricity demand across various sectors [1][2]. Demand - In January and February 2025, total electricity consumption reached 155.64 billion kWh, with a year-on-year growth of 1.3%, down 1.9 percentage points from December 2024. The contributions to overall electricity growth were 7.7% from primary industry, 40.4% from secondary industry, 50.7% from tertiary industry, and 1.6% from residential use [2]. - The secondary industry's electricity consumption growth rate declined, with high-energy-consuming sectors experiencing a slowdown. High-energy regions saw a consumption growth rate drop to 2.4%, while coastal regions continued to decline [2]. Supply - As of February 2025, the installed capacity of power plants with 600,000 kW and above reached 298 million kW, a year-on-year increase of 11.7%. In January and February, new installations totaled 54,530 MW, including 39,470 MW of solar power [3]. - Power source investment amounted to 75.3 billion yuan, a year-on-year increase of 0.2%, but down 11.9 percentage points compared to the entire year of 2024. Conversely, grid investment reached 43.6 billion yuan, up 33.5% year-on-year, marking an 18.2 percentage point increase from 2024 [3]. Consumption - The average utilization hours of power generation equipment in January and February were 505 hours, down 10.3% year-on-year. Specifically, hydropower utilization was 368 hours (down 0.3%), thermal power was 691 hours (down 9.4%), nuclear power was 1,226 hours (up 0.8%), wind power was 363 hours (down 2.7%), and solar power was 166 hours (down 1.2%) [4]. - In February, the domestic wind power utilization rate was 92.9%, down 0.8 percentage points year-on-year, while the solar power utilization rate remained stable at 93.4% [4]. The decline in thermal power utilization hours is attributed to the expansion of thermal power installations in 2024 and limited electricity demand growth in 2025 [4]. Investment Opportunities - Focus on long-term assets such as hydropower and nuclear power, which benefit from declining interest rates and return expectations. Low-valuation green electricity stocks in Hong Kong present a safety margin and potential policy improvements [6]. - Selective investments in sectors with resource advantages or superior business models, such as offshore wind and integrated coal power [6]. - Opportunities arising from the integration of digitalization and new power systems, including virtual power plants, microgrids, and comprehensive energy services [6].