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]

Investment Rating - The report maintains an "Overweight" rating for the utility sector, consistent with the previous rating [6]. Core Insights - In February 2025, wind power generation continued to show a year-on-year improvement, with four Hong Kong-listed companies reporting their generation data for January and February 2025. The wind power generation figures were 111.8, 57.6, 16.9, and 28.8 billion kWh for Longyuan Power, Datang New Energy, CGN New Energy, and Xintian Green Energy, respectively, reflecting year-on-year growth rates of +2.6%, +9.8%, -3.1%, and +13.8% [8][6]. - Inner Mongolia is encouraging the construction of incremental distribution networks to address consumption issues, as outlined in a recent announcement from the Inner Mongolia Energy Bureau. This policy aims to shift the responsibility of consumption from the regional grid to the distribution network project owners [9][10]. Summary by Sections Investment Highlights - The report highlights the ongoing improvement in wind power generation and the new policy in Inner Mongolia aimed at enhancing the consumption of renewable energy [8][9]. - The report suggests that the marginal improvement in wind power generation for three companies is likely due to favorable wind conditions, with differences in growth rates attributed to project regional distribution [8]. Subsector Recommendations - **Thermal Power**: Focus on companies with advantageous locations and strong performance improvement certainty, recommending Wanhua Power, Sheneng Co., and Huadian International Power [11]. - **Gas**: Emphasize dividend value enhancement under improving free cash flow trends, recommending leading companies such as China Resources Gas, Xinao Gas, and China Gas [11]. - **Wind and Solar**: Await policy-driven improvements in industry factors, recommending high-quality stocks with significant wind power proportions, such as Xintian Green Energy and Yunnan Energy Investment [11]. - **Hydropower**: Reverse investment in high-quality large hydropower basins, recommending China Yangtze Power and Sichuan Investment Energy [11]. - **Nuclear Power**: Long-term hidden return rates are worth attention, recommending CGN Power and China National Nuclear Power [11]. Market Review - From March 10 to March 14, 2025, the utility sector saw a price increase of 2.21%, with notable performances from various subsectors, including hydropower (+0.88%), thermal power (+3.39%), wind power (+2.09%), solar (+4.68%), and gas (+2.01%) [15][21].