China Galaxy Securities: The continuous decline in new installed wind power capacity, we recommend seizing the sector's turning point opportunities.

China Galaxy Securities released a research report stating that in July, wind power and CECEP Solar Energy saw a decline in newly installed capacity due to the impact of the slowdown in the rush to install after the "530 policy" milestone. According to government policies and calculations by relevant institutions, it is expected that there is still a large growth space for new energy installations in the future, and China's power generation structure will continue to be cleaner. It is suggested to seize the opportunity of the turning point in the sector, with individual stocks recommended to focus on leading national enterprises such as China Longyuan Power Group Corporation (001289.SZ) and China Three Gorges Renewables (600905.SH). Main points of view from China Galaxy Securities: - The newly installed capacity of wind and solar energy in July continued to decline, with great long-term growth potential. - The electricity generation growth rate of thermal power in July increased, while the decline in hydropower generation widened. - The growth rate of electricity consumption accelerated in July, with monthly consumption exceeding 1 trillion kilowatt-hours for the first time. Investment recommendations: 1. Green Energy: In the final year of the 14th Five-Year Plan, the assessment of energy consumption targets is expected to catalyze the demand for green electricity. With the establishment of a sustainable development price settlement mechanism for new energy, the industry's future profit expectations become clearer. It is recommended to seize the opportunity of the turning point in the sector, with individual stocks recommended to focus on leading national companies such as China Longyuan Power Group Corporation and China Three Gorges Renewables. 2. Thermal Power: With the end of the peak season and the recovery of coal transportation, it is expected that coal prices will enter a downward trend again. Companies with a large market coal exposure, and those in regions with smaller reductions in annual long-term contract electricity prices, are recommended. Individual stocks to focus on include DATANG POWER and Jointo Energy Investment. 3. Hydro and Nuclear Power: During the interest rate downturn cycle, hydropower and nuclear power, with strong dividend attributes, have long-term allocation value. Nuclear power also has high potential for long-term growth. Individual stocks recommended include China Yangtze Power and China National Nuclear Power. Risk Warning: Risks include lower-than-expected installation scale, significant increases in coal prices, reductions in on-grid electricity prices, and increased industry competition, among others.