Core Viewpoint - The company Duofuduo (002407) announced that its subsidiary, Duofuduo Boron-based (Shandong) New Materials Technology Co., Ltd., has officially accepted an order from China General Nuclear Power Group's subsidiary, Suzhou Thermal Research Institute Co., Ltd., after a site audit [1] Group 1 - The order involves the delivery of boron isotope products [1]

Investment Rating - The report maintains a "Buy" rating for the power sector, emphasizing the potential for price recovery and demand restoration in the future [4]. Core Insights - The power sector's overall performance in Q3 2025 aligns with expectations, with thermal power showing revenue decline but profit increase, hydropower remaining stable, and green energy facing pressure [4]. - The report forecasts a 5% year-on-year growth in total electricity consumption for 2025, with an expected increase in installed capacity exceeding 500 million kilowatts [11][4]. - Coal prices are projected to continue their downward trend due to weak downstream demand, with the average price for Q3 2025 at 673 RMB/ton, a 26.7% decrease year-on-year [20][4]. Summary by Sections Market Review - From January to September 2025, total electricity consumption reached 77,675 billion kWh, a 4.6% increase year-on-year, while industrial power generation grew by 1.6% [11]. - The performance of the power sector indices shows that the CSI 300 index rose by 17.90%, while the CITIC Power and Utilities index only increased by 3.05%, underperforming by 14.86 percentage points [23][2]. - Fund holdings in the power sector have decreased, with active funds holding 0.65% and index funds holding 1.74% of the sector, both showing declines compared to previous quarters [28][2]. Performance Overview - The power sector's total revenue for the first three quarters of 2025 was 1,436.5 billion RMB, down 1.34% year-on-year, while net profit increased by 5.81% to 169.4 billion RMB [3]. - Thermal power revenue decreased by 3.12% to 906 billion RMB, but net profit rose by 15.83% to 71.1 billion RMB [3]. - Hydropower revenue grew by 1.66% to 148.8 billion RMB, with net profit increasing by 3.32% to 51.3 billion RMB [3]. - New energy generation, including nuclear power, saw a slight revenue increase of 0.77% to 235.6 billion RMB, but net profit fell by 5.59% to 35.3 billion RMB [3]. Investment Recommendations - The report suggests focusing on the thermal power sector, particularly companies like Huaneng International and Huadian International, due to expected price stabilization and performance recovery [4][7]. - It also recommends increasing positions in undervalued green energy stocks and highlights the importance of energy storage policies and flexible power generation [4][7].

Core Points - The company Duofuduo (002407.SZ) announced that its subsidiary, Duofuduo Boron-based (Shandong) New Materials Technology Co., Ltd., has officially accepted an order from China General Nuclear Power Group's subsidiary, Suzhou Thermal Research Institute Co., Ltd., after a site audit [1] Group 1 - The subsidiary has begun the delivery of boron isotope products [1]

Core Viewpoint - China General Nuclear Power Corporation (CGN) has shown a mixed performance in stock price and financial results, with a slight increase in stock price recently but a decline in revenue and net profit year-on-year [1][2]. Financial Performance - As of September 30, 2025, CGN reported operating revenue of 59.723 billion yuan, a year-on-year decrease of 4.09% [2]. - The net profit attributable to shareholders was 8.576 billion yuan, reflecting a year-on-year decline of 14.10% [2]. - Cumulative cash dividends since CGN's A-share listing amount to 26.057 billion yuan, with 13.938 billion yuan distributed over the past three years [3]. Stock Market Activity - On November 5, CGN's stock price increased by 2.01%, reaching 4.07 yuan per share, with a trading volume of 350 million yuan and a turnover rate of 0.22% [1]. - The total market capitalization of CGN is approximately 205.529 billion yuan [1]. - Year-to-date, CGN's stock price has risen by 0.87%, with a 12.43% increase over the past 20 trading days [1]. Shareholder Structure - As of September 30, 2025, CGN had 228,200 shareholders, a decrease of 3.46% from the previous period [2]. - The average number of circulating shares per shareholder increased by 3.61% to 174,612 shares [2]. - The second-largest circulating shareholder, Hong Kong Central Clearing Limited, holds 7.487 billion shares, down by 621 million shares from the previous period [3].

Market Overview - In October, the Shanghai and Shenzhen 300 Index remained unchanged, while the public utility index increased by 4.47% and the environmental index rose by 2.58% [1][16] - Among the 31 first-level industry categories, public utilities and environmental sectors ranked 5th and 8th in terms of growth [1][43] - In the electricity sector, thermal power increased by 10.98%, hydropower by 4.01%, and gas by 6.39% [1][44] Important Events - On October 30, the Ministry of Commerce issued guidelines to support the use of green low-carbon development in foreign trade, promoting the use of renewable energy and sustainable fuels in international shipping [2][17] - The guidelines encourage foreign trade enterprises to develop and utilize recycled resources and biodegradable materials [2][17] Sector Performance - The thermal power sector's revenue for the first three quarters of 2025 was 906.47 billion yuan, a year-on-year decrease of 5.48%, while net profit increased by 15.03% to 71.12 billion yuan [3][18] - The hydropower sector's revenue was 148.76 billion yuan, down 1.39%, with net profit rising by 1.73% to 51.32 billion yuan [3][22] - Wind power revenue decreased by 2.80% to 117.16 billion yuan, with net profit down 12.15% to 22.03 billion yuan [3][25] - The photovoltaic sector saw revenue of 26.10 billion yuan, a decline of 16.55%, but net profit increased by 55.77% to 2.90 billion yuan [3][28] - Nuclear power revenue was 164.08 billion yuan, up 1.76%, but net profit fell by 12.39% to 16.58 billion yuan [3][32] - The gas sector's revenue was 234.91 billion yuan, a decrease of 0.78%, with net profit down 5.49% to 10.25 billion yuan [3][36] Investment Strategy - For thermal power, it is recommended to invest in major companies like Huadian International and Shanghai Electric due to stable profitability [4][41] - In the renewable energy sector, companies such as Longyuan Power and Three Gorges Energy are recommended for their potential steady earnings growth [4][41] - Nuclear power companies like China Nuclear Power and China General Nuclear Power are expected to maintain stable profits [4][41] - High-dividend hydropower stocks like Yangtze Power are highlighted for their defensive attributes [4][41] - In the gas sector, Jiufeng Energy is recommended for its capabilities in marine gas trading [4][41] - The environmental sector is advised to focus on companies like China Everbright Environment and Zhongshan Public Utilities, which are entering a mature phase with improved cash flow [4][42]

Investment Rating - The investment rating for China General Nuclear Power Corporation (003816.SZ) is "Outperform the Market" [6][20]. Core Views - The company's revenue for the first three quarters of 2025 was CNY 59.723 billion, a decrease of 4.09% year-on-year, while the net profit attributable to shareholders was CNY 8.576 billion, down 14.14% year-on-year, primarily due to increased market-based electricity sales and declining electricity prices [9][11]. - The total electricity generation from the company's operational nuclear units reached 182.822 billion kWh, an increase of 2.67% year-on-year, with grid electricity sales at 172.179 billion kWh, up 3.17% year-on-year [9][11]. - The cancellation of the variable cost compensation for nuclear power in Guangdong is expected to lead to a rebound in electricity prices, with an estimated increase of approximately CNY 0.04/kWh in market-based prices starting in 2026 [2][17]. - The adjustment of the value-added tax policy for nuclear power is not expected to have a significant impact on profitability in the short term [3][19]. - The completion of the asset injection of Huizhou Nuclear Power is a significant development, with the company acquiring 82% of Huizhou Nuclear Power and 100% of its subsidiaries [3][19]. Summary by Sections Financial Performance - In Q3 2025, the company reported revenue of CNY 20.556 billion, a decrease of 10.21% year-on-year but an increase of 7.40% quarter-on-quarter. The net profit for the same period was CNY 2.624 billion, down 8.81% year-on-year and down 10.32% quarter-on-quarter [9][11]. - The gross margin for the first three quarters of 2025 was 33.5%, a decrease of 3.17 percentage points year-on-year, while the net margin was 21.58%, down 3.31 percentage points year-on-year [11][18]. Future Outlook - The company expects net profits for 2025, 2026, and 2027 to be CNY 9.41 billion, CNY 10.75 billion, and CNY 11.73 billion, respectively, with year-on-year growth rates of -13%, 14%, and 9% [20][22]. - The company is managing 28 operational units with a total installed capacity of 31.796 million kW and has 20 units under construction, representing 44.46% of the national total capacity [16][22]. Market Conditions - The market-based electricity price in Guangdong is expected to rebound due to the cancellation of the variable cost compensation mechanism, which is anticipated to positively impact the company's performance in 2026 [2][17]. - The company’s stock is currently priced at CNY 4.01, with a market capitalization of CNY 202.499 billion [6][21].

Market Overview - In October, the Shanghai and Shenzhen 300 index remained unchanged, while the public utility index increased by 4.47% and the environmental index rose by 2.58% [1][16] - Among the 31 primary industry sectors, public utilities and environmental sectors ranked 5th and 8th in terms of growth [1][43] - In the electricity sector, thermal power increased by 10.98%, hydropower by 4.01%, and gas by 6.39% [1][44] Important Events - On October 30, the Ministry of Commerce issued guidelines to promote green trade, encouraging foreign trade enterprises to adopt green and low-carbon development throughout their supply chains [2][17] - The guidelines support the use of renewable energy and sustainable fuels in international shipping, including green methanol and green ammonia [2][17] Sector Performance - The thermal power sector's revenue for the first three quarters of 2025 was 906.47 billion yuan, a year-on-year decrease of 5.48%, while net profit increased by 15.03% to 71.12 billion yuan [3][18] - Hydropower sector revenue totaled 148.76 billion yuan, down 1.39%, with net profit rising by 1.73% to 51.32 billion yuan [3][22] - Wind power revenue decreased by 2.80% to 117.16 billion yuan, with net profit down 12.15% to 22.03 billion yuan [3][25] - The solar power sector saw revenue of 26.10 billion yuan, a decline of 16.55%, but net profit increased by 55.77% to 2.90 billion yuan [3][28] - Nuclear power revenue was 164.08 billion yuan, up 1.76%, but net profit fell by 12.39% to 16.58 billion yuan [3][32] - The gas sector's revenue was 234.91 billion yuan, a decrease of 0.78%, with net profit down 5.49% to 10.25 billion yuan [3][36] Investment Strategy - For thermal power, it is recommended to invest in major companies like Huadian International and Shanghai Electric due to expected stable profitability [4][41] - In the renewable energy sector, leading companies such as Longyuan Power and Three Gorges Energy are recommended for their potential steady earnings [4][41] - Nuclear power companies like China Nuclear Power and China General Nuclear Power are expected to maintain stable profits, with a recommendation for China Power Investment Corporation [4][41] - High-dividend hydropower stocks like Yangtze Power are highlighted for their defensive attributes [4][41] - In the gas sector, Jiufeng Energy is recommended for its capabilities in marine gas trading [4][41] - The environmental sector is advised to focus on companies like China Everbright Environment and Zhongshan Public Utilities, which are seen as utility-like investment opportunities [4][42]

Core Viewpoint - The company reported a decline in revenue and net profit for the first three quarters of 2025, indicating ongoing challenges in the nuclear power sector due to price and volume pressures. Financial Performance - In the first three quarters of 2025, the company achieved revenue of 59.723 billion yuan, a year-on-year decrease of 4.09% - The net profit attributable to shareholders was 8.576 billion yuan, down 14.14% year-on-year - In Q3 2025, revenue was 20.556 billion yuan, a decline of 10.21% year-on-year, with a net profit of 2.624 billion yuan, down 8.81% year-on-year [1][2] Operational Challenges - The total nuclear power generation for the first three quarters of 2025 was 172.179 billion kWh, an increase of 3.17% year-on-year, but Q3 generation was 58.819 billion kWh, a decrease of 3.39% year-on-year - The average nuclear power generation price in Q3 2025 is estimated to have decreased by approximately 1.2 cents per kWh, contributing to revenue decline - Operating costs in Q3 2025 decreased by 6.47% year-on-year, while sales, management, R&D, and financial expenses varied, with significant reductions in sales and R&D costs [2] Growth Prospects - As of September 30, 2025, the company has 20 nuclear power units under construction, with several expected to be operational between 2025 and 2028, indicating substantial long-term growth potential - The cancellation of the variable cost compensation mechanism for Guangdong nuclear power units starting in 2026 is expected to enhance profitability for the company [3] Profit Forecast and Valuation - The company is projected to achieve net profits of 9.450 billion yuan, 9.785 billion yuan, and 10.561 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year changes of -12.62%, +3.54%, and +7.94% - The price-to-earnings ratio for the company's stock as of November 3, 2025, is estimated to be 21.43, 20.70, and 19.17 for the respective years [4]

Investment Rating - The report maintains a "Positive" investment rating for the power industry [12] Core Insights - Since 2025, electricity demand has slowed, with a year-on-year growth of 4.60% in total electricity consumption for the first three quarters. The power sector's operating revenue decreased by 3.94% year-on-year due to adjustments in annual long-term contract electricity prices in several provinces. However, benefiting from a significant drop in coal prices, the net profit attributable to shareholders in the power sector reached 166.32 billion yuan, a year-on-year increase of 3.13% [2][22] - The performance of various sub-sectors within the power industry has shown significant differentiation, with thermal power profits increasing by 28.41% year-on-year due to cost improvements, while hydropower and renewable energy sectors faced declines of 4.76% and 16.80% respectively [2][10] Summary by Sections Thermal Power - In the first three quarters of 2025, thermal power generation volume decreased by 1.2% year-on-year, and the annual long-term contract electricity prices were adjusted in most provinces. Despite this, the significant drop in coal prices supported a 12.13% year-on-year increase in net profit for the thermal power sector, amounting to 79.39 billion yuan [6][57] - The third quarter saw a marginal improvement in thermal power generation due to a recovery in electricity demand, with net profit increasing by 28.41% year-on-year [6][26] Hydropower - The overall water inflow was lower in the first three quarters of 2025, leading to mixed performance among major hydropower companies. The hydropower sector's revenue grew by 1.62% year-on-year, while net profit increased by 2.13% [7][30] - In the third quarter, the hydropower sector faced a revenue decline of 1.63% and a net profit decrease of 4.76% due to uneven water inflow conditions [7][32] Renewable Energy - The renewable energy sector experienced weak performance due to unfavorable wind and solar conditions, alongside ongoing electricity price pressures. Revenue growth was limited to 0.62% year-on-year, while net profit decreased by 9.87% [8][30] - In the third quarter, net profit for the renewable energy sector fell by 16.80% year-on-year, with significant declines noted in nuclear power companies due to increased tax expenses and market price pressures [8][39] Power Grid - The power grid sector saw a slight revenue decline of 0.03% year-on-year in the first three quarters, with net profit decreasing by 4.78%. However, the performance pressure eased in the third quarter due to improved water inflow conditions [9][30] - In the third quarter, the power grid sector's revenue decreased by 0.82% year-on-year, with net profit down by 2.88%, but the decline was less severe compared to the first half of the year [9][39] Investment Recommendations - The report suggests a continued focus on quality thermal power operators and clean energy investment opportunities, highlighting companies such as Huaneng International, Datang Power, and China Nuclear Power as potential investment targets [10][51]

Core Viewpoint - CITIC Securities-Kaiyuan Single Asset Management Plan has increased its stake in China General Nuclear Power (01816) by acquiring 16.16 million shares at a price of HKD 3.0868 per share, totaling approximately HKD 49.88269 million, resulting in a new holding of about 1.3556 billion shares, representing 12.14% ownership [1] Summary by Category - **Share Acquisition** - CITIC Securities-Kaiyuan has purchased 16.16 million shares of China General Nuclear Power [1] - The acquisition price was HKD 3.0868 per share, leading to a total investment of approximately HKD 49.88269 million [1] - **Ownership Structure** - Following the acquisition, CITIC Securities-Kaiyuan's total shareholding in China General Nuclear Power is approximately 1.3556 billion shares [1] - This represents a 12.14% ownership stake in the company [1]