Investment Rating - The report maintains an investment rating of "Outperform" for the electricity and public utilities sector [9] Core Insights - The electricity and public utilities index outperformed the market in March 2026, with a rise of 4.65%, surpassing the Shanghai and Shenzhen 300 index by 9.07 percentage points [4][13] - The report suggests a "barbell strategy" for asset allocation in the electricity sector, focusing on stable, high-dividend large hydropower companies for defensive positions and exploring opportunities in themes like virtual power plants for aggressive investments [9] Summary by Sections Market Review - In March 2026, the electricity and public utilities index increased by 4.65%, while the Shanghai and Shenzhen 300 index decreased by 4.42% [4][13] - Sub-industry performance for March ranked as follows: Other Generation (12.94%), Thermal Power (7.45%), Hydropower (6.00%), Grid (4.05%), Gas (1.77%), Environmental Protection and Water Services (-3.76%), Heating or Others (-4.66%) [4][13] Supply and Demand in the Industry - In January-February 2026, total electricity consumption reached 1,654.6 billion kWh, a year-on-year increase of 6.1% [5][19] - The industrial electricity generation in the same period was 1,571.8 billion kWh, up 4.1% year-on-year, with thermal power generation increasing to 1,053.9 billion kWh [5][24] - As of February 2026, the total installed capacity of power generation in China was 3,945 million kW, a year-on-year increase of 15.9% [5][34] Coal Price and Production - In January-February 2026, the domestic production of raw coal was 760 million tons, a slight decrease of 0.3% year-on-year [6][39] - The price of thermal coal at northern ports was 765 RMB/ton, with a monthly increase of 3.38% and an annual increase of 10.87% [6][42] Provincial Electricity Supply and Demand - In January-February 2026, Henan province's total electricity consumption was 73.502 billion kWh, a year-on-year increase of 2.63% [7][64] - The total generation in Henan was 63.154 billion kWh, a decrease of 0.45% year-on-year, with hydropower generation increasing by 22.31% [7][66] Industry News and Developments - The report highlights significant developments such as the issuance of long-term market implementation rules in Qinghai province and the commencement of major natural gas pipeline projects [74]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - After the Spring Festival, the overall sentiment in the A-share market has significantly warmed up, with the CSI 1000 and CSI 500 indexes rising by over 4% within the week. The technology and resource sectors have shown a dual-line market, driven by different logics. The policy tone during the Two Sessions is expected to be "structural optimization" rather than "strong stimulus" [5]. - The technology sector remains prosperous but shows continued differentiation. The computing infrastructure and commercial aerospace sectors have more solid fundamental support, while the AI application and large model concepts face short - term pressure. The allocation logic for resource products and public utilities is expected to strengthen next week [8]. Summary by Directory Market Observation - **Market Performance After the Spring Festival**: The overall sentiment in the A - share market has warmed up after the Spring Festival. The CSI 1000 and CSI 500 indexes have risen by over 4%. The computing power industry chain, power, commercial aerospace, and resource product cyclical sectors have been active, but the "AI swallowing applications" narrative has impacted sectors such as A - share software and Hang Seng Technology. The global HALO trading strategy has become the dominant direction for foreign capital, and the A - share market has resonated [5]. - **Driving Logic of the Dual - line Market of Technology and Resources**: The dual - line market of technology and resources is essentially two sides of the same market logic. The technology sector is driven by the industrial prosperity logic of "AI driving the expansion of computing power and power demand and accelerating domestic substitution", and the resource sector is driven by the cycle repair logic of "PPI recovery, anti - involution policy implementation, and global resource re - pricing" [5]. - **Policy Expectations During the Two Sessions**: The period from the Spring Festival to the Two Sessions is a time window with dense policy expectations and relatively high certainty of market rise. The current policy tone emphasizes "stabilizing expectations, preventing risks, and improving quality", and the policy combination is more inclined to "structural optimization" rather than "strong stimulus" [5]. - **Configuration Outlook**: The technology sector remains prosperous but shows continued differentiation. The computing infrastructure and commercial aerospace sectors have better risk - return ratios. The allocation logic for resource products and public utilities is expected to strengthen next week. The public utility sector has both substantial demand increments from AI computing power expansion and price mechanism reform expectations [8]. Market Review - **Market Performance**: Most major market indexes rose last week, with the CSI 1000 having the largest increase of 4.34%. The material and energy indexes performed relatively well, with weekly increases of 8.03% and 6.31% respectively, while the telecommunications service and financial indexes performed weakly, with decreases of 3.20% and 1.10% respectively. Among the 30 Shenwan primary industries, 24 industries rose, with steel, non - ferrous metals, and basic chemicals having relatively large increases of 12.27%, 9.77%, and 7.15% respectively, and media, commercial retail, and food and beverage having relatively large decreases of 5.10%, 1.64%, and 1.54% respectively [9][15][18]. - **Trading Heat**: The average daily trading volume of the Wind All - A index last week was 24402.93 billion yuan (the previous value was 21111.36 billion yuan), which is at a relatively high historical position (92.80% in the three - year historical quantile) [21]. - **Valuation Tracking**: As of February 27, 2026, the valuation (PE_TTM) of the Wind All - A index was 23.71, an increase of 0.24 from the previous week, and it is at the 99.90% quantile in the past 5 years. Among the 30 Shenwan primary industries, 23 industries' valuations (PE_TTM) have recovered [25]. Economic Calendar - **Domestic Economic Data**: The official manufacturing PMI for February will be released on March 4 [28]. - **Overseas Economic Data**: The US ISM manufacturing PMI for February, the US effective federal funds rate for February, the US ISM services PMI for February, and the initial jobless claims for the week ending February 28 will be released from March 2 to March 5 [28].

Group 1 - The Xinxin Heating Project in Xiuwen County is a provincial key project that resumed construction on February 22, aiming for production by May 2026 [1][2] - The project covers an area of 30,875.25 square meters and plans to build four production lines, with an annual steam production capacity of approximately 780,000 tons [1] - The first phase of the project involves an investment of about 106 million yuan, with a planned annual steam output of 260,000 tons and includes two biomass chain grate boilers [1][2] Group 2 - As of February 26, 13 out of 25 key projects in Xiuwen County have resumed work, achieving a resumption rate of 52%, while 12 out of 17 provincial major projects have resumed, reaching a 70% rate [3] - The project is aligned with green and low-carbon initiatives, utilizing biomass boiler technology primarily fueled by agricultural and forestry waste, contributing to pollution reduction and supporting the local economy [2]

Group 1 - The company has implemented a comprehensive heating guarantee system during the Spring Festival, focusing on safety production, smart scheduling, emergency response, and public service to ensure a warm holiday for residents [1][2] - A 24-hour hotline "968111" with 15 service seats has been established to promptly respond to heating requests from the public [1][3] - The company conducted thorough safety inspections before the holiday, ensuring no blind spots in identifying potential hazards and enhancing the monitoring of heating stations [1][3] Group 2 - Smart scheduling strategies have been developed in collaboration with heat source companies to ensure balanced and comfortable heating during the holiday, utilizing a dynamic temperature and pressure adjustment plan [2] - The company has adopted a service mechanism that emphasizes proactive engagement with vulnerable groups, providing door-to-door services to address heating issues before they arise [3] - Emergency response teams have been organized, with strict adherence to a "1-minute response, 30-minute arrival" standard to ensure uninterrupted heating services [3] Group 3 - The company plans to review the heating operations for the current season and prepare for the next heating season, focusing on enhancing safety production responsibilities and promoting high-quality development in heating services [3]

Core Insights - The Binhai New Area Smart Heating Platform has been established to enhance heating services for approximately 1.3 million users, significantly reducing service requests by 65% compared to the previous year [1][2][4] Group 1: Smart Heating Platform Overview - The platform operates a comprehensive "source-network-load-user" smart operation system, which is set to be fully operational by the 2025-2026 heating season [1] - Real-time monitoring of 71 heating stations and over 1,300 heat exchange stations allows for immediate visibility into heating data for each residential community [2][6] Group 2: Operational Efficiency and Emergency Response - The platform includes seven subsystems focused on heating dispatch, service supervision, and emergency command, with automatic alerts triggered for low return water temperatures or loads [4] - In extreme weather conditions, the platform proactively notifies heating companies to increase temperature and pressure, ensuring timely resolution of heating issues [4][6] Group 3: Data-Driven Decision Making - The smart heating platform provides a panoramic data system covering the entire heating supply chain, supporting decision-making and operational management [6] - The transition from reactive repairs to proactive warnings enhances service quality and allows for tailored responses to individual user needs [6] Group 4: Future Developments and Sustainability - Plans are in place for the "3+2+N" network strategy to upgrade existing heating plants and integrate renewable energy sources, ensuring a sustainable heating supply [7] - Ongoing projects aim to improve network connectivity and capacity, enhancing the overall stability and safety of the heating system across the region [7]

Group 1 - The article highlights the dedication of emergency service workers in Chen Barhu Banner during the Spring Festival, emphasizing their commitment to public safety and service [1][2] - Firefighters maintain a 24-hour watch during the holiday, focusing on key areas and ensuring communication is always operational, showcasing their readiness and responsibility [1] - The power supply team actively monitors and maintains the electrical grid, ensuring reliable service during peak electricity usage, reflecting their mission and dedication to the community [2] Group 2 - The heating service workers continuously adjust heating parameters based on weather changes, ensuring warmth for residents during the cold season, demonstrating their commitment to public comfort [2] - The article portrays the collective effort of firefighters, power supply, and heating service workers as they prioritize community safety and comfort over personal celebrations during the holiday [2] - The narrative emphasizes the ordinary yet profound actions of these workers, portraying them as the unsung heroes of the Spring Festival, contributing to a peaceful and harmonious environment [2]

Group 1 - The city of Xining aims to build an innovative, livable, beautiful, resilient, civilized, and smart city by 2025, with a focus on high-quality urban development [1] - The urban sewage treatment rate is projected to increase from 95% in 2024 to 96% in 2025, while the proportion of green buildings in new constructions is expected to rise from 98% in 2024 to 100% [1] - The city has secured a central government subsidy of 1.2 billion yuan for urban renewal and aims to complete 34 underground pipeline renovation projects with a total of 1.257 billion yuan in national bond funding [1] Group 2 - Xining is integrating housing condition improvements with geological disaster relocation projects, completing 40 model villages and improving living conditions for 7,000 rural households [2] - In the heating sector, 40 annual tasks have been completed, including the renovation of 220.4 kilometers of heating pipelines and 145 heat exchange stations [2] - A digital platform for four heating enterprises has been established, enhancing the visibility and control of heating operations, thereby strengthening supply reliability for the upcoming winter [2]

Core Viewpoint - The article highlights the essential role of heat pipeline inspectors in maintaining urban warmth during cold weather, emphasizing their dedication even during festive seasons [1] Group 1: Industry Insights - The temperature difference between underground heat pipelines and the surface can reach up to 50°C, indicating the efficiency and importance of the heating system in urban areas [1] - The article describes the routine inspections conducted by heat pipeline inspectors, referred to as "pipeline doctors," showcasing their commitment to ensuring the city's heating infrastructure operates effectively [1]

Core Viewpoint - The article highlights the essential role of heat supply personnel in ensuring the safety and efficiency of the heating pipeline network during the winter season, particularly during the Chinese New Year holiday when they remain on duty to perform routine inspections and maintenance [1][5]. Group 1: Personnel and Responsibilities - The team responsible for the heating pipeline network consists of experienced professionals, including Zhou Tong and Guo Xudong, who have been in the industry since 2007 and 2011, respectively [1]. - The heating pipeline network managed by the company spans 262 kilometers across three districts: Xicheng, Haidian, and Fengtai [1]. Group 2: Inspection Process - During inspections, personnel utilize specialized equipment such as thermal imaging cameras and acoustic listening rods to assess the condition of the pipelines [3][4]. - The temperature in the underground inspection areas can reach up to 40 degrees Celsius, creating a stark contrast with the cold surface temperatures, which can differ by as much as 50 degrees Celsius [3]. Group 3: Technology and Monitoring - The company has implemented a "situation awareness system and track inspection robots" for real-time monitoring of underground temperatures and liquid levels, enhancing the ability to detect leaks and anomalies [4]. - The inspection of each well typically takes between 40 minutes to an hour, with a total of 2,210 wells distributed across the network [4]. Group 4: Safety and Maintenance - The personnel are committed to maintaining pipeline safety, which is emphasized as a primary goal during the festive season [5]. - Each worker is responsible for 25 to 30 wells, requiring them to memorize critical information about each well, including its location, valve types, and maintenance history, to ensure quick response during emergencies [4].

Core Viewpoint - The article highlights the critical role of heat supply personnel in ensuring the safety and efficiency of the heating pipeline network during the winter season, particularly during the Chinese New Year holiday when they perform routine inspections to maintain the city's warmth [2][5]. Group 1: Personnel and Responsibilities - The heat supply team is responsible for a heating pipeline network that spans 262 kilometers across multiple districts in Beijing, requiring daily inspections during peak times like the Spring Festival [2][4]. - Experienced personnel, such as Zhou Tong and Guo Xudong, utilize specialized equipment for inspections, demonstrating their expertise in maintaining the heating infrastructure [2][3]. Group 2: Inspection Techniques - Inspections involve both visual checks and advanced technology, including thermal imaging and electronic listening devices, to detect temperature variations and potential leaks in the pipeline [4][5]. - The process of thoroughly inspecting a single well typically takes between 40 minutes to an hour, with a total of 2,210 wells managed by the team [4]. Group 3: Technological Integration - The company has implemented a "situation awareness system and track inspection robots" for real-time monitoring of underground temperatures and liquid levels, enhancing the efficiency of leak detection and response [5]. - This integration of technology allows for automatic alerts in case of abnormal temperature or water level changes, complementing the experience of the personnel [5].