Guosheng Securities: Overall performance of thermal power in Q3 is on the rise, emphasizing on switching styles and focusing on power allocation.

Guosheng Securities released a research report stating that the third quarter performance of thermal power continued to improve, with the rebound in coal prices leading to expectations of "stabilizing electricity prices". The autumn flood season for hydropower has brought about improved water supply, coupled with changes in the market style, emphasizing the importance of allocation. With frequent energy storage policies being implemented, there is still room for improvement in capacity compensation mechanisms, with a focus on the value of adjustable power sources, in addition to expectations for a catalyst in the third quarter performance. Key points from Guosheng Securities are as follows: Demand side - In September, the national total electricity consumption increased by 4.5% year-on-year. According to data released by the National Energy Administration, from January to September, the total electricity consumption of the whole society reached 77.675 billion kilowatt hours, a year-on-year increase of 4.6%, with industrial electricity consumption above a certain scale reaching 72.557 billion kilowatt hours. In September, total electricity consumption reached 888.6 billion kilowatt hours, a year-on-year increase of 4.5%. Overall - In September, the growth rate of electricity demand for primary and tertiary industries narrowed, while the electricity demand for secondary industries continued to improve on a monthly basis, and residential electricity consumption growth significantly slowed down after the end of the hot weather. In terms of electricity consumption by industries, in September, the electricity consumption of the primary industry was 12.9 billion kilowatt hours, an increase of 7.3% year-on-year; the electricity consumption of the secondary industry was 570.5 billion kilowatt hours, an increase of 5.7% year-on-year; the electricity consumption of the tertiary industry was 176.5 billion kilowatt hours, an increase of 6.3% year-on-year; and the electricity consumption for urban and rural residents was 128.7 billion kilowatt hours, a decrease of 2.6% year-on-year. Supply side - In September, the electricity production of large-scale industrial enterprises increased by 1.5% year-on-year. Overall, electricity production in the industrial sector showed steady growth. In September, the electricity production of large-scale industrial enterprises reached 826.2 billion kilowatt hours, an increase of 1.5% year-on-year; with a daily average electricity production of 27.54 billion kilowatt hours. From January to September, the electricity production of large-scale industrial enterprises reached 72.557 billion kilowatt hours, an increase of 1.6% year-on-year. Varieties - In September, the electricity production of large-scale industrial thermal power and wind power decreased, while hydropower increased, nuclear power growth slowed down, and the electricity production growth rate of CECEP Solar Energy accelerated. Specifically, the electricity production of large-scale industrial thermal power decreased by 5.4% year-on-year, compared to an increase of 1.7% in August; hydropower increased by 31.9%, compared to a decrease of 10.1% in August; nuclear power increased by 1.6%, with a slower growth rate of 4.3 percentage points compared to August; wind power decreased by 7.6%, compared to an increase of 20.2% in August; and the electricity production of large-scale industrial CECEP Solar Energy increased by 21.1%, with a growth rate accelerated by 5.2 percentage points compared to August.