20230716-国金证券-公用事业及环保产业行业研究_电改文件获深改委审批_改革进入深水区_17页_1mb

Market Overview

Last week (July 10-14), the Shanghai Composite index increased by 1.29%, while the ChiNext index decreased by 2.41%. The utility sector declined 0.12%, environmental protection rose 0.66%, coal mining gained 0.33%, and the carbon neutrality sector rose 1.55%. Individual sub-sectors varied, with other energy power stocks leading utilities in gains, and photovoltaic stocks seeing significant declines.

Weekly Theme: Power System Reform

Central reforms include the approval of guidelines for building a new type of power system, which aims for clean energy, energy security, and market liberalization. This promotes renewable electricity expansion, grid upgrades, and cost management due to the energy "impossible triangle," emphasizing hardware (e.g., thermal power, grids) and software (market mechanisms).

Industry Key Developments

Notable events involve President Xi's emphasis on carbon emissions controls and power system upgrades. Industry highlights include a sodium-ion battery deal in Qingdao and government guidance on rural grid enhancements, such as solving coverage issues and integrating renewable sources.

Investment Suggestions

• Thermal power: Focus on high-quality assets like Huainan International and companies with new energy expansions.
• Renewable energy: Target Longyuan Power in wind/solar and nuclear sector leaders like China Nuclear Power.
• Environmental protection: Prioritize companies innovating in flexibility, such as Qingda Environmental Protection for deNOx solutions.

Risk Assessment

• Power sector risks include underestimated capacity growth, lower demand, market liberalization delays, and high coal prices impacting profitability.
• Environmental sector risks involve slow policy implementation and regional demand variations, potentially affecting market dynamics.

This summary is based on the provided market data and policy analyses from the industry report.