Core Viewpoint - 大唐新能源 (01798.HK) reported a slight decrease in total power generation for 2025 compared to 2024, with a notable increase in solar power generation and a decrease in wind power generation [1] Group 1: Power Generation Statistics - The company and its subsidiaries achieved a total power generation of 3,452,979 MWh in December 2025, representing a 0.33% decrease year-on-year from 2024 [1] - Wind power generation amounted to 3,094,039 MWh, reflecting a 5.38% decrease compared to 2024 [1] - Solar power generation reached 358,941 MWh, showing a significant increase of 49.48% year-on-year [1] Group 2: Cumulative Power Generation - As of December 31, 2025, the cumulative power generation for the year was 35,105,104 MWh, which is a 9.40% increase from 2024 [1] - Cumulative wind power generation totaled 29,994,258 MWh, marking a 4.69% increase compared to the previous year [1] - Cumulative solar power generation was 5,110,846 MWh, indicating a 41.57% increase year-on-year [1]

Investment Rating - The report maintains a "Positive" investment rating for the utility sector [8] Core Insights - In October, the national power generation increased by 7.9% year-on-year, driven by abnormal high temperatures in southern regions, marking the highest monthly growth rate of the year [2][18] - Hydropower continues to perform strongly with a 28.2% year-on-year increase in October, while thermal power shows significant recovery with a 7.3% increase [2][24] - The report highlights the improvement in the operational environment for thermal power, with a narrowing decline of 0.4% for the year-to-date [11][45] Summary by Sections Power Generation Data - In October, total power generation reached 800.2 billion kWh, with thermal power contributing 513.8 billion kWh, hydropower 135.1 billion kWh, nuclear power 38.7 billion kWh, wind power 73.3 billion kWh, and solar power 39.4 billion kWh [17][24] - For the first ten months of 2025, total power generation was 8062.5 billion kWh, reflecting a 2.3% year-on-year growth [17][18] Thermal Power Insights - Thermal power generation in October saw a significant turnaround with a 7.3% increase, alleviating previous pressures, and the year-to-date decline has narrowed to 0.4% [2][45] - The average coal price at Qinhuangdao port was 746.89 RMB/ton in October, down 105.22 RMB/ton year-on-year, contributing to the improved operational environment for thermal power [11][45] Hydropower Performance - Hydropower generation in October was 135.1 billion kWh, up 28.2% year-on-year, supported by improved rainfall and a low base from the previous year [11][26] - The average rainfall in October was 51.5 mm, significantly above the historical average, enhancing hydropower generation capacity [26] Renewable Energy Trends - Wind power generation decreased by 11.9% year-on-year in October, while solar power generation increased by 5.9%, although the growth rate has slowed [11][32] - The report notes that the cumulative installed capacity for wind and solar power has seen a decline in new installations compared to previous years [32][40] Investment Recommendations - The report recommends focusing on quality thermal power operators such as Huaneng International, Datang Power, and Guodian Power, as well as hydropower companies like Yangtze Power and State Power Investment Corporation [11][50] - For renewable energy, it suggests companies like Longyuan Power and China Nuclear Power, highlighting their potential for growth in the current market environment [50][52]