"Big Banks" Citigroup: The National Energy Administration's forecast is overly conservative, reiterating "buy" ratings for Goldwind, DONGFANG ELEC, and others

Citi published a research report indicating that yesterday (December 17), the stock prices of several mainland utility stocks fell, which is believed to be due to the National Energy Administration's conservative guidance for next year, including prudently setting targets for new installed capacity of wind and solar power, as well as a cautious attitude towards the development of hydropower and nuclear power.

The bank stated that based on past experience, it believes the forecast of "wind and solar installed capacity exceeding 200GW" for next year may be too low, and it expects capital expenditure on hydropower and nuclear power projects during the 14th Five-Year Plan period to increase in order to achieve emission reduction targets. In addition, the bank anticipates that the demand for global energy storage systems (ESS) will accelerate.

The bank reiterated its "Buy" rating on Goldwind (02208.HK)(002202.SZ), Tongwei Co., Ltd (600438.SH), DONGFANG ELEC (01072.HK)(600875.SH), and Sungrow Power Supply (300274.SZ)