Project Overview - The Yarlung Tsangpo River downstream hydropower project officially commenced on July 19, 2025, with a total investment of approximately CNY 1.2 trillion[1] - The project will construct five stepped hydropower stations, primarily focusing on power transmission while also addressing local consumption needs[1] Economic Impact - The project is expected to positively influence the economy over a long period, potentially increasing GDP by approximately 0.1 percentage points annually during its construction phase[2] - It is estimated that the project will create around 200,000 jobs, significantly boosting local employment opportunities[2] - Once operational, the hydropower station could generate over CNY 20 billion in annual fiscal revenue for Tibet, accounting for 72.2% of the region's 2024 general public budget revenue[2] Infrastructure and Industry Growth - The project will drive demand for construction materials such as cement, steel, and machinery, leading to significant growth opportunities in related industries[3] - The construction phase is anticipated to enhance local infrastructure, including roads and power grids, facilitating better connectivity and economic development in the region[3] Environmental and Energy Contributions - The hydropower project is projected to provide nearly 300 billion kilowatt-hours of clean energy annually, meeting the electricity needs of over 300 million people and significantly reducing reliance on fossil fuels[3] - The project aligns with China's dual carbon goals, contributing to a cleaner energy mix and supporting the development of complementary renewable energy sources like solar and wind[3] Risks and Considerations - Potential risks include delays in fiscal policy implementation and project progress, which could impact the anticipated economic benefits[4] - The complexity of the project involves significant policy coordination, funding, and technical challenges, which may affect timelines and outcomes[4]

展望后市，银河证券表示，A股运行中枢有望迈上新台阶。 从个股看，两市上涨4005家，下跌1291家，120家涨幅持平，共131股涨停，共6股跌停。 截至收盘，两市双双走高，沪指涨0.72%报3559.79点，成交7309亿元；深成指涨0.86%报11007.49点， 成交9588亿元。创业板指上涨0.87%，报2296.88点。 资金动向 今日市场放量走高，沪指走出4连阳，两市成交额突破1.7万亿创近期新高。值得关注的是，雅下水电概 念横空出世引爆市场。据券商中国报道，有分析人士认为，此举不仅带动水电板块，亦会带动西藏地区 的经济发展，并带动全国就业，与此同时，对有色、钢铁等行业也带来支撑。对于经济和市场情绪皆构 成利好。 具体到盘面上，受到相关消息提振，雅下水电概念引爆市场，民爆、工程机械、水利、水泥建材、新型 城镇化、电网设备、西藏等相关板块暴涨，中国电建、中国能建两大龙头股罕见双双"一字"涨停，西藏 天路等几十股涨停；机器人概念反复活跃，人气股上纬新材斩获9连板，刷新A股"20cm"连板纪录，区 间累计涨逾416%；此外，有色金属、钢铁、军工、创新药等板块均有所表现。下跌方面，银行、保险 等大金融板块继 ...

A股三大指数今日集体上涨，截至收盘，沪指涨0.72%，深成指涨0.86%，创业板指涨0.87%，北证50指数涨2.38%，沪深京三市成交额 17271亿元，较上日放量1339亿元。全市场超4000只个股上涨，超110只个股涨停。板块题材上，雅下水电、工程机械、水泥建材、钢 铁、电网设备、新型城镇化板块涨幅居前；跨境支付、银行、教育、光刻机概念股跌幅居前。盘面上，受利好消息影响，水泥建材、 工程机械等大基建板块掀起涨停潮，中国电建（601669）、西藏天路（600326）、保利联合（002037）等几十股涨停。钢铁板块全天 强势，西宁特钢（600117）、八一钢铁（600581）、柳钢股份（601003）封板涨停。电网设备板块午后震荡上行，中国西电 （601179）、许继电气（000400）、国电南自（600268）封板涨停。猪肉股同样表现积极，邦基科技（603151）、神农集团 （605296）涨停。跨境支付板块今日震荡调整，多只高位股下挫，四方精创（300468）、中油资本（000617）、宇信科技（300674） 跌幅居前。银行板块同样表现落后，厦门银行（601187）、西安银行（600928）、兴业银行 ...

Report Industry Investment Ratings No relevant content provided. Core Views - The overall view is that different futures products have different market trends and investment suggestions. For some products like government bonds, it is expected that there will be no trend - style market, and caution is advised; for stock index futures, long - term performance of Chinese equity assets is optimistic, and going long on stock index futures is considered; for precious metals, the long - term bull market trend is expected to continue, and going long on gold futures is considered [5][8][10]. Summary by Product Government Bonds - Last trading day, most government bond futures closed down. The 30 - year, 10 - year, and 5 - year main contracts declined, while the 2 - year main contract remained flat. The central bank conducted 187.5 billion yuan of 7 - day reverse repurchase operations, with a net injection of 102.8 billion yuan. The macro - economic recovery momentum needs to be strengthened, and the government bond yield is at a relatively low level. It is expected that there will be no trend - style market, and caution is advised [5]. Stock Index - Last trading day, stock index futures showed mixed results. The Yarlung Zangbo River downstream hydropower project started, with a total investment of about 12 trillion yuan. From January to June 2025, the number of newly - established foreign - invested enterprises increased, but the actual use of foreign capital decreased. Although the domestic economic recovery momentum is weak, the low valuation of domestic assets and the resilience of the Chinese economy make the long - term performance of Chinese equity assets promising, and going long on stock index futures is considered [7][8]. Precious Metals - Last trading day, gold and silver main contracts rose. The US consumer confidence index showed an upward trend. The complex global trade and financial environment, the "de - globalization" and "de - dollarization" trends, and the gold - buying behavior of central banks support the precious metals market. If the US economic growth slows down, the Fed may cut interest rates, providing new upward momentum for gold. The long - term bull market trend of precious metals is expected to continue, and going long on gold futures is considered [10]. Steel Products (Rebar, Hot - rolled Coil) - Last trading day, rebar and hot - rolled coil futures rose slightly. The important meeting at the beginning of the month triggered expectations of supply contraction, but the downward trend of the real estate industry and over - capacity still suppress the prices. The market is in the off - season, and the price rebound space may be limited. Technically, the short - term may remain strong. Investors can wait for the right opportunity to short after the rebound [12]. Iron Ore - Last trading day, iron ore futures rose slightly. Policy expectations boosted the black - series commodities. The iron water daily output declined, the supply increased after April, and the port inventory is close to last year's level. The supply - demand pattern has weakened marginally, and the valuation is relatively high. Technically, the short - term may remain strong. Investors can look for low - level buying opportunities and take profit in time [14]. Coking Coal and Coke - Last trading day, coking coal and coke futures continued to rise. The important meeting at the beginning of the month triggered expectations of supply contraction. The coal mine operating rate in the main production areas is rising, and the over - capacity may lead to an increase in supply. The steel mill's iron water output is falling, and the procurement intention is weak. The cost support of coke is effective. Technically, the short - term may remain strong. Investors can wait for the right opportunity to short in the medium - term [16]. Ferroalloys - Last trading day, manganese silicon and silicon iron main contracts rose. The manganese ore supply from Gabon decreased, and the Australian ore supply increased. The port manganese ore inventory rose slightly. The iron alloy output increased at a low level, and the demand is weak, with high inventory. In the off - season, the short - term demand has peaked, and the supply is in excess, with pressure on prices. If the spot loss continues to expand, low - level out - of - the - money call options can be considered [18]. Crude Oil - Last trading day, INE crude oil rose significantly without fundamental support. The CFTC data showed that fund managers reduced their net long positions. The number of US oil and gas rigs increased, and the EU approved a new round of sanctions against Russia. The decline in US oil rigs provides some support for oil prices, but the reduction in net long positions and trade frictions restrict the upward movement. Shorting opportunities for the main crude oil contract can be considered [20][21]. Fuel Oil - Last trading day, fuel oil rose significantly. The Asian high - sulfur fuel oil spot spread reached a nearly three - year low, with sufficient supply and weak demand. The low - sulfur fuel oil market may have some downward space in the short - term, with expected supply increase and sufficient inventory. Shorting opportunities for the main fuel oil contract can be considered [23][24]. Synthetic Rubber - Last trading day, the synthetic rubber main contract rose. The raw material price declined, and the processing profit became positive. The supply - demand is short - term loose. Wait for the market to stabilize and then participate in the rebound [26]. Natural Rubber - Last trading day, natural rubber main contracts rose. It is expected that the natural rubber market will maintain a strong - side oscillation next week. The supply may increase due to less rainfall in the production areas, and the cost support weakens. The demand from tire enterprises is mixed, and the inventory has slightly decreased. Mid - term long - buying opportunities can be considered [29]. PVC - Last trading day, the PVC main contract declined slightly. The supply - demand imbalance continues, but the downward space is limited. The industry's promotion of stable growth in the petrochemical industry may drive the market. The supply decreased last week, the demand from downstream enterprises is weak, and the export is affected by India's rainy season and tariffs. The cost and profit are mainly affected by raw materials, and the profit has improved. The market is expected to oscillate strongly [31]. Urea - Last trading day, the urea main contract rose slightly. The short - term domestic urea market will fluctuate narrowly. The supply is expected to remain high, the agricultural demand is limited, and the industrial demand increases slowly. The inventory is higher than expected. It is expected to oscillate in the short - term and be bullish in the medium - term [34]. PX - Last trading day, the PX2509 main contract rose. The PX load declined, and some refineries had maintenance or load - reduction. The import volume increased in May 2025. The rise in European diesel prices and the rebound of oil prices support the market, but the supply - demand balance is tight in the short - term, and the cost support may be insufficient. Short - term oscillation adjustment is expected, and cautious participation is recommended [36]. PTA - Last trading day, the PTA2509 main contract rose. The supply load increased, and the demand from the polyester industry decreased. The profit is concentrated upstream, and the processing fee is under pressure but has rebounded recently. There may be more unexpected maintenance in the future, with strong support below. Interval participation is recommended, and attention should be paid to the opportunity of expanding the processing fee [38]. Ethylene Glycol - Last trading day, the ethylene glycol main contract rose. The overall operating load increased, and some plants had maintenance. The inventory in the East China main port decreased. The demand from the polyester industry declined. The short - term supply pressure has been relieved, with support below. Cautious attitude towards the downside space is recommended, and interval participation is mainly suggested, paying attention to port inventory and import changes [39]. Short - fiber - Last trading day, the short - fiber 2509 main contract rose. The supply load decreased, the demand from the downstream is weak, and the inventory is accumulating. The cost of PTA and ethylene glycol oscillates, with insufficient short - term drivers. Some plants have production cut, and the processing fee is gradually repairing. It is expected to oscillate following the cost, and cautious attitude towards the repair space of the processing difference is recommended [41]. Bottle - chip - Last trading day, the bottle - chip 2509 main contract rose. Recently, more bottle - chip plants had maintenance, and the load declined. The downstream soft - drink consumption is recovering, and the export is growing. The raw material price oscillates, and the inventory is reducing, with support for the market. It is expected to oscillate following the cost [42]. Soda Ash - Last trading day, the soda ash 2509 main contract closed flat. Some plants' loads changed. The production was stable at a high level, and the inventory increased. The downstream demand is stable, with flexible transactions. In the short - term, the market is expected to oscillate and adjust. In the long - term, the supply - demand imbalance is difficult to improve, and the downstream glass industry has limited support. Rational attitude is recommended, and excessive chasing or shorting is not advisable [43]. Glass - Last trading day, the glass 2509 main contract declined slightly. The number of in - production lines remained low. The market sentiment in different regions is different, and the downstream demand is mainly for rigid needs. The overall market is driven by macro - sentiment and some enterprises' price increases, with some replenishment by the middle and lower reaches. Attention should be paid to the Politburo meeting at the end of the month [45]. Caustic Soda - Last trading day, the caustic soda 2509 main contract declined slightly. The production of large - scale caustic soda enterprises increased last week, and the supply is expected to increase next week. The non - aluminum downstream is cautious in purchasing, and the supply - demand difference is positive. The inventory increased, and the capacity utilization ratio in different regions changed. The price of alumina may continue to oscillate strongly in the short - term. The overall market is expected to oscillate narrowly [46]. Pulp - Last trading day, the pulp 2509 main contract rose. The supply is expected to expand, and a new pulp factory will be put into operation in 2026. The downstream product output declined, and the demand in the off - season is weak. The supply pressure increases due to the expected arrival of Brazilian shipments. The port inventory is high, and the market confidence is suppressed. The price of raw pulp oscillates, and the downstream demand is weak. The overall pulp price is expected to oscillate and adjust [48]. Lithium Carbonate - Last trading day, the lithium carbonate main contract rose. The concerns about the supply side due to mining license issues have pushed up the price, but the supply - demand pattern remains unchanged. The supply is strong, the production intention of refineries is high, and the consumption has improved, but the inventory is high and still increasing. The impact of supply - side sentiment is greater than the actual situation, and more observation and less action are recommended [50]. Copper - Last trading day, Shanghai copper rebounded slightly. The US tariff on copper will be implemented on August 1st, which led to the return of refined copper to China and depressed the price. After the decline, the price stabilized and rebounded. Long - buying opportunities for the Shanghai copper main contract can be considered [51]. Tin - Last trading day, Shanghai tin oscillated. The supply from the mine end is tight, but the expectation of tin mine resumption in the fourth quarter has increased. The domestic processing fee is low, and the smelter's operating rate is below normal. The export from Indonesia has recovered, but the overall supply is still short. The consumption in the traditional field is in the off - season. The inventory at home and abroad is decreasing, and the price is expected to oscillate strongly [54]. Nickel - Last trading day, Shanghai nickel rose. The price of the mine end has weakened due to the pressure from the stainless - steel industry. The downstream nickel - iron plants are in losses, and some plants in Indonesia have shut down for maintenance. The stainless - steel market is strong in the futures but weak in the spot. The consumption is weak, and there is pressure above. The inventory in China is relatively high, and the primary nickel market is in excess [55]. Soybean Products (Soybean Meal, Soybean Oil) - Last trading day, soybean meal and soybean oil main contracts rose. The domestic soybean arrival volume is high, and the oil - mill's profit is low, with sufficient supply in the future. The increase in Brazilian soybean import cost provides support. The oil - mill's inventory of soybean meal and soybean oil increased. The consumption of soybean oil may be affected by the slowdown of catering growth, while the feed demand for soybean meal is expected to increase slightly. For soybean meal, long - buying opportunities at the support level after adjustment can be considered; for soybean oil, call - option opportunities at the support level after the decline can be considered [56]. Palm Oil - Malaysian palm oil prices rose for the third consecutive week. The export volume of Malaysian palm oil products decreased in the first 15 days of July. The biodiesel consumption in Indonesia increased, and the palm oil tax revenue is expected to support the biodiesel quota plan. The domestic palm oil inventory is at a medium - high level in the past 7 years. The opportunity of expanding the spread between rapeseed oil and palm oil can be considered [58]. Rapeseed Meal and Rapeseed Oil - Canadian rapeseed slightly strengthened. The import volume of rapeseed oil and rapeseed meal in China decreased in May 2025. The inventory of rapeseed, rapeseed meal, and rapeseed oil in China decreased. Long - buying opportunities for rapeseed products can be considered [61]. Cotton - Last trading day, domestic Zhengzhou cotton rebounded to a new high. The US Department of Agriculture's July supply - demand report showed an increase in the global and US cotton production and ending inventory. The domestic cotton sowing area increased in 2025, and the output is expected to increase. The global supply - demand is expected to be loose, and the short - term cotton price rebounds with the overall commodity market. The 7 - month supply - demand report is bearish. The domestic industry is in the off - season, and the downstream inventory is accumulating. It is recommended to wait and see [62]. Sugar - Last trading day, domestic Zhengzhou sugar oscillated. The Brazilian sugar production is expected to decrease. The import volume of sugar in China increased in June but decreased from January to June. The sugar production in the key central - southern region of Brazil decreased more than expected in the second half of June. The domestic inventory is low, and the import volume is high. After the short - term basis repair, the valuation is neutral. It is recommended to wait and see [66]. Apple - Last trading day, domestic apple futures oscillated. The expectation of apple production reduction has been falsified, and the production is expected to increase slightly in the 2025 - 2026 season. The inventory in the main production areas decreased. The main contract represents the new - year purchase price. Short - selling opportunities at high prices can be considered [69]. Pig - The national average price of pigs decreased yesterday. The northern market was strong on the weekend, with the support of farmers' supply reduction, second - fattening, and seasonal consumption. The central region increased the supply, and the price decreased slightly. The southern market rose, with the support of the typhoon, farmers' reluctance to sell, and second - fattening. The short - term southern market may still have a small upward space, but attention should be paid to the supply rhythm [70]. Eggs - Last trading day, the average price of eggs in the main production and sales areas rose. The cost per catty of eggs decreased slightly, and the profit is still in losses. The inventory of laying hens increased in June and is expected to continue to increase in July. The supply is expected to increase year - on - year in July, and it is in the consumption off - season. The supply pressure in October may be relieved. The 9 - 10 reverse - spread strategy can be considered [72]. Corn and Corn Starch - Last trading day, corn and corn starch main contracts rose. The market is worried about the impact of high - temperature on US corn growth. The domestic corn supply - demand is approaching balance, and the consumption is recovering. The port inventory has decreased rapidly, and the inventory pressure has been relieved. The import may increase in the future, and the central - reserve corn auction has a net sales. The upward movement may face pressure, and waiting and seeing is recommended. Corn starch has weak supply and demand, high inventory, and follows the corn market [75]. Logs - Last trading day, the main log contract rose. The number of expected arrival ships of New Zealand logs in 18 ports increased in the 27th week of 2025, and the arrival volume increased significantly. The cost factors are mixed. The domestic log inventory has been decreasing, and the radiation - pine inventory has decreased rapidly. The price of radiation - pine logs in the port is stable. Before the first delivery, the market is expected to oscillate and adjust. The delivery situation has a positive impact on the main 09 and far - month contracts, but the price of standard products has not increased significantly [78].

Investment Rating - The report maintains an "Overweight" rating for the utility sector [1] Core Insights - The implementation of a capacity price mechanism in Gansu Province at 330 CNY/KW·year, with a 100% recovery of fixed costs, exceeds market expectations and the national guideline of a minimum 50% recovery starting in 2026 [4] - The report highlights a reversal for green power operators due to the release of three major constraints: consumption, pricing, and subsidies, leading to a stable pricing mechanism for sustainable development [4] - The overall electricity consumption in the first five months of 2025 reached 3.97 trillion kWh, showing a year-on-year increase of 3.4% [13] - The cumulative power generation for the same period was 3.73 trillion kWh, with a slight year-on-year increase of 0.3% [20] Summary by Sections 1. Market Review - The SW utility index decreased by 1.37% from July 14 to July 18, 2025, with various sub-sectors showing mixed performance [9] - Notable stock performances included Min Dong Power (+6.7%) and Jiufeng Energy (+5.5%) [12] 2. Electricity Sector Tracking 2.1. Electricity Consumption - Total electricity consumption for January to May 2025 was 3.97 trillion kWh, up 3.4% year-on-year, with growth in all sectors [13] 2.2. Power Generation - Cumulative power generation for the same period was 3.73 trillion kWh, with fire power and water power showing declines of 3.1% and 2.5% respectively, while wind and solar power increased by 11.1% and 18.3% [20] 2.3. Electricity Prices - The average grid purchase price in July 2025 was 382 CNY/MWh, down 3% year-on-year and 1.4% month-on-month [38] 2.4. Coal Prices - As of July 18, 2025, the price of thermal coal at Qinhuangdao was 642 CNY/ton, down 24.11% year-on-year but up 10 CNY/ton week-on-week [43] 2.5. Hydropower - The water level at the Three Gorges Reservoir was 158.37 meters, with inflow and outflow rates showing significant year-on-year declines of 46.15% and 58.25% respectively [54] 3. Investment Recommendations - Focus on investment opportunities in solar energy and charging stations, with specific recommendations for companies like Nanfang Energy and Longxin Co [4] - Recommendations for thermal power investments include companies like Jingtou Energy and Beijing Energy [4] - Hydropower is highlighted for its low cost and strong cash flow, with a recommendation for Changjiang Power [4] - Nuclear power is noted for its growth potential, with recommendations for China Nuclear Power and China General Nuclear Power [4] - Green energy is expected to see a recovery in asset quality, with recommendations for Longjing Environmental Protection and others [4]

Group 1: Liquidity and Scale of New Energy ETF - The New Energy ETF had an intraday turnover of 2.47%, with a transaction volume of 22.29 million yuan [3] - As of July 18, the New Energy ETF's latest scale reached 896 million yuan, marking a one-month high [3] - The latest margin buying amount for the New Energy ETF was 1.24 million yuan, with a margin balance of 21.68 million yuan [3] Group 2: Performance Metrics of New Energy ETF - Since its inception, the New Energy ETF recorded a highest monthly return of 25.07%, with the longest consecutive monthly gains being 2 months and a maximum increase of 38.44% [3] - The average return during the rising months was 7.76%, and the annualized return over the past three months exceeded the benchmark by 6.57% [3] Group 3: Key Stocks in New Energy Sector - The top ten weighted stocks in the CSI New Energy Index include CATL, Sungrow Power, Longi Green Energy, China Nuclear Power, Three Gorges Energy, TBEA, EVE Energy, Huayou Cobalt, Tongwei Co., and Ganfeng Lithium, collectively accounting for 42.81% of the index [6] Group 4: New Hydropower Project Announcement - The groundbreaking ceremony for the Yarlung Tsangpo River downstream hydropower project was held on July 19, with a total investment of approximately 1.2 trillion yuan for the construction of five cascade power stations [5] - The project primarily focuses on power transmission outside the region while also addressing local consumption needs in Tibet [5] Group 5: Long-term Benefits for Suppliers - CITIC Securities believes that the ongoing construction of the Yarlung Tsangpo River downstream hydropower project will provide long-term benefits to leading suppliers of hydropower equipment and core equipment for power grid transmission [6]

Core Viewpoint - China Life Insurance is committed to the "333 strategy" and aims to enhance its role in supporting the economy and improving people's livelihoods through long-term investments in infrastructure and green finance [1][3]. Group 1: Investment Activities - The event held in Qinghai from June 18 to 20 was part of the "One China Life, One Life Protection" series, focusing on how insurance funds can better support the development of the real economy [3][4]. - China Life has invested a total of 170 billion yuan in the Qinghai Yellow River Company, with 80 billion yuan in 2017 and 90 billion yuan in 2019, to support various infrastructure projects [12][70]. - As of June 2025, China Life Asset Management Company manages over 6.5 trillion yuan in assets, with more than 4 trillion yuan directly supporting the real economy [12][78]. Group 2: Impact on Local Economy and Environment - The Dragon Yuxia Hydropower Station, known as the "First Dam of the Yellow River," generates an average of 6 billion kWh annually and significantly reduces flood risks for downstream areas [10][17]. - The irrigation guarantee rate for downstream areas has increased from 56% to 80% due to the regulation provided by the Dragon Yuxia Reservoir, benefiting food supply across nine provinces [11][66]. - The Qinghai Yellow River Company has developed a "photovoltaic + ecological" model, transforming barren land into productive grazing areas, which has improved local livelihoods [44][91]. Group 3: Regulatory and Strategic Framework - The State Council's guidelines emphasize enhancing the insurance industry's service quality to the real economy, focusing on major national strategies and key areas [12][18]. - China Life is actively involved in various sectors, including renewable energy, infrastructure, and social welfare, aligning its investments with national development goals [54][60]. - The company has established a comprehensive investment mechanism to ensure that insurance funds are directed towards social welfare projects, aiming for both social and economic benefits [55][78].

Investment Rating - The report maintains an "Outperform" rating for the public utility and environmental sectors [1][5][8]. Core Views - The report highlights the commencement of the Yarlung Tsangpo River downstream hydropower project, with a total investment of approximately 1.2 trillion yuan, focusing on power delivery and local consumption [1][15]. - The Gansu Provincial Development and Reform Commission has proposed a capacity price mechanism for power generation, setting a standard of 330 yuan per kilowatt per year starting January 1, 2026, for compliant coal power units and new energy storage [2][17]. - The report emphasizes the potential for stable profitability in coal-fired power generation due to synchronized declines in coal and electricity prices, recommending major coal power companies [3][22]. Summary by Sections Market Review - The Shanghai Composite Index rose by 1.09%, while the public utility index fell by 1.37% and the environmental index by 0.49%, with relative returns of -2.46% and -1.58% respectively [1][14]. - In the electricity sector, coal-fired power decreased by 1.04%, hydropower by 2.13%, and new energy generation by 0.68%, while the gas sector saw a slight increase of 0.31% [1][25]. Important Policies and Events - The Yarlung Tsangpo River downstream hydropower project was officially launched on July 19, 2025, with a focus on five tiered power stations [1][15]. - The National Bureau of Statistics reported a 1.7% year-on-year increase in industrial power generation in June, with a total of 796.3 billion kilowatt-hours produced [1][16]. Investment Strategy - The report recommends several companies based on their sector performance: - Coal-fired power: Huadian International and Shanghai Electric [3][22]. - New energy: Longyuan Power and Three Gorges Energy, among others [3][22]. - Nuclear power: China Nuclear Power and China General Nuclear Power [3][22]. - Hydropower: Yangtze Power [3][22]. - Gas: China Resources Gas and Jiufeng Energy [3][22]. - Environmental: China Everbright Environment and Zhongshan Public Utilities [3][23]. Key Company Earnings Forecasts and Investment Ratings - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for various companies, all rated as "Outperform" [8]. For example, Huadian International has an EPS of 0.46 for 2024 and a PE of 11.7 [8]. Industry Key Data Overview - In June, the total industrial power generation reached 796.3 billion kilowatt-hours, with a year-on-year growth of 1.7% [1][48]. - The report notes that coal-fired power generation saw a 1.1% increase, while nuclear power generation grew by 10.3% [1][48]. Environmental Sector Insights - The report indicates that the water and waste incineration sectors are entering a mature phase, with improved free cash flow and declining risk preferences among investors [3][23]. - The domestic waste oil recycling industry is expected to benefit from the EU's SAF blending policy [3][23].

Group 1 - The market showed a slight increase with the Shanghai Composite Index rising less than half a point, while the Shenzhen Component and ChiNext also saw minor gains, indicating a more active trading atmosphere compared to the previous week [1][3] - Infrastructure-related sectors, including cement, steel, and hydropower, experienced significant gains, with stocks like Tibet Tianlu and China Power Construction hitting the daily limit, driven by the announcement of key projects for the second half of the year [3] - The performance of these sectors is directly linked to project commencement, suggesting that companies in these areas are likely to report solid earnings in the upcoming mid-year reports [3] Group 2 - There was a noticeable shift in funds towards safer investments with tangible performance, moving away from speculative stocks that rely solely on concepts [4] - The banking sector showed weakness, with stocks like Qilu Bank and Xiamen Bank declining, likely due to the lack of a reduction in the Loan Prime Rate (LPR) [3] - For long-term investors, focusing on sectors with reasonable valuations and existing orders, such as regional cement leaders or infrastructure support equipment manufacturers, presents a better opportunity during market pullbacks [3][4]

Group 1 - The market experienced fluctuations with a total trading volume of 1.57 trillion yuan, an increase of 31.7 billion yuan compared to the previous trading day, with mixed performance among individual stocks [1] - Key sectors showing gains included rare earth permanent magnets, lithium mining, non-ferrous metals, and coal, while gaming, photovoltaics, CPO, and consumer electronics sectors faced declines [1] - CITIC Securities highlighted continuous catalysts in the AI computing power sector, with companies like Meta investing billions in data centers and OpenAI launching a general AI agent in ChatGPT [1] Group 2 - The announcement of the construction of the Yarlung Tsangpo River downstream hydropower super project is seen as a positive development for the hydropower sector [2] - The civil explosives industry is expected to see a significant increase in concentration, with production value projected to grow from 27.3 billion yuan in 2015 to 41.7 billion yuan in 2024, averaging a 5% annual growth [2] - The domestic market indices, driven by heavyweight stocks, returned to the 3,500-point mark, with the Shenzhen and ChiNext indices nearing previous highs, indicating potential short-term technical adjustments [2]