According to a research report on the mainland utilities sector by JPMorgan, last year's procurement capacity for offshore wind turbines in mainland China reached 8.42 GW. Mingyang Smart Energy (601615.SH) led with 2.1 GW, while Goldwind (02208) ranked fourth with 1.2 GW. Boosted by positive sentiment surrounding commercial aerospace and space-based solar power development, both companies' share prices have risen significantly since the start of the year. In the upstream wind power sector, the firm advises investors to shift their focus to Orient Cable (603606.SH). Furthermore, driven by optimism for space-based solar power and commercial aerospace, the A-share solar sector index has significantly outperformed the broader market. The bank recommends that stock selection should continue to concentrate on companies with strong profit growth prospects, such as Orient Cable, Daqo New Energy (DQ.US), and GCL Tech (03800). Additionally, China's energy storage system installed capacity surged 73% year-on-year last year. Sungrow Power (300274.SZ) is poised to benefit from policy reforms and rising demand in the high-end market. The bank maintains a cautious outlook on China's gas utility sector, primarily due to weak growth in industrial gas consumption, limited margin improvement, and a continued decline in new customer connections. Last year's warm winter in the fourth quarter also led to modest growth in natural gas sales volumes. JPMorgan anticipates that some companies may fail to meet their full-year 2025 gas consumption targets. Kunlun Energy (00135) is the only company in the sector actively engaged in capital recycling and is the bank's top sector pick. Simultaneously, the bank holds a cautious stance on China Resources Gas (01193) due to its slow progress on share buybacks and weak operational trends.
Comments