Investment Rating - The report maintains an "Overweight" rating for the utility sector [1]. Core Insights - The National Development and Reform Commission has revised the pricing methods for transmission and distribution costs, aiming to promote the consumption of renewable energy and enhance power supply security [4]. - The highest electricity load during the heating season is expected to reach a historical peak, indicating a balanced energy supply and demand overall [4]. Industry Data Tracking - **Electricity Price**: The average electricity purchase price in November 2025 was 401 RMB/MWh, a year-on-year decrease of 2% and a month-on-month increase of 2.8% [33]. - **Coal Price**: As of November 28, 2025, the price of thermal coal at Qinhuangdao port was 816 RMB/ton, a year-on-year decrease of 0.49% [43]. - **Water Conditions**: The water level at the Three Gorges Reservoir was 173.41 meters, with inflow and outflow rates increasing by 2.7% and 36.44% year-on-year, respectively [53]. - **Electricity Consumption**: Total electricity consumption from January to October 2025 was 8.62 trillion kWh, a year-on-year increase of 5.1% [13]. - **Power Generation**: Cumulative power generation from January to October 2025 was 8.06 trillion kWh, a year-on-year increase of 2.3% [20]. - **Installed Capacity**: As of September 30, 2025, the cumulative installed capacity of thermal power reached 1.5 billion kW, with a year-on-year increase of 5.7% [47]. Investment Recommendations - **Thermal Power**: Focus on undervalued investment opportunities in thermal power, particularly in the Beijing-Tianjin-Hebei region, recommending companies like Jingtou Energy, Jingneng Power, and Datang Power [4]. - **Charging Pile Equipment**: Suggesting attention to companies like Teruid and Shenghong Shares [4]. - **Photovoltaic Assets**: Emphasizing the potential for value reassessment in photovoltaic and charging pile assets, recommending companies like Southern Power Grid Energy and Longxin Group [4]. - **Green Electricity**: Anticipating improvements in asset quality and growth potential in green electricity, recommending companies like Longyuan Power and China Minmetals Energy [4]. - **Hydropower**: Highlighting the benefits of marketization and low-cost advantages, recommending Changjiang Power [4]. - **Nuclear Power**: Noting the growth potential and expected increases in profitability and dividends, recommending China Nuclear Power and China General Nuclear Power [4].

Core Insights - The photovoltaic equipment and lithium battery sectors are experiencing significant growth, with the China Securities New Energy Index rising by 1.52% as of November 28, 2025, driven by strong performances from companies like Micro导纳米 (up 10.71%) and Maiwei Co. (up 7.82%) [1] - Recent regulatory changes by the National Development and Reform Commission aim to enhance the consumption and utilization of renewable energy, improve power supply security, and reduce costs for grid companies [1] - The fourth quarter is expected to be a peak sales season for new energy vehicles (NEVs), with a projected year-on-year increase in domestic NEV sales in 2025, which will boost demand for batteries and materials [1] Industry Analysis - The lithium hexafluorophosphate price is on the rise, indicating potential recovery in profitability for related companies within the power battery supply chain [1] - The photovoltaic investment strategy is focused on "anti-involution," particularly in the silicon material segment, with downstream battery components relying more on efficiency improvements for market clearing [1] - High power output components are expected to drive an increase in component prices, suggesting a favorable outlook for companies involved in high-quality films, silicon materials, battery components, perovskite, and BC directions [1] - The energy storage sector remains in a high-demand phase, with prices for energy storage cells and integration continuing to rise, highlighting investment opportunities in energy storage cells and large-scale integration plants [1] Market Composition - As of October 31, 2025, the top ten weighted stocks in the China Securities New Energy Index include leading companies such as Sungrow Power Supply, CATL, and LONGi Green Energy, collectively accounting for 46.1% of the index [2] Investment Tools - The New Energy ETF (159875) closely tracks the China Securities New Energy Index, providing a convenient tool for investors to gain exposure to leading companies in the energy sector [3]