Electric power stocks continued their recent upward trend. As of press time, China Longyuan (00916) rose 5.7% to HKD 7.42, Huadian Power International Corporation (01071) rose 3.59% to HKD 4.9, Datang Renew (01798) rose 2.97% to HKD 2.08, China Res Power (00836) rose 2.71% to HKD 24.6, and China Power (02380) rose 1.73% to HKD 4.12.
Electric power stocks continued their recent upward trend. As of press time, China Longyuan (00916) rose 5.7% to HKD 7.42, Huadian Power International Corporation (01071) rose 3.59% to HKD 4.9, Datang Renew (01798) rose 2.97% to HKD 2.08, China Res Power (00836) rose 2.71% to HKD 24.6, and China Power (02380) rose 1.73% to HKD 4.12.
According to the statistics released by the National Bureau of Statistics, from January to May, the revenue of the electricity, heat, gas, and water production and supply industry's large-scale enterprises reached CNY4988.57 billion, a year-on-year increase of 4.8%; and realized a total profit of CNY323.36 billion, a year-on-year increase of 29.5%. Specifically, the electricity and heat production and supply industry realized a profit of CNY272.11 billion, a year-on-year increase of 35%.
China Securities Co., Ltd. believes that the profits of large-scale electricity enterprises maintain a high growth rate, mainly benefiting from the downward trend of thermal coal prices promoting the improvement of thermal power profitability and the continued good water conditions driving the improvement of hydropower profitability. It is expected that the thermal coal market will maintain a loose operation, and the improvement trend of thermal power profitability will continue. Haitong Securities also pointed out that the thermal power sector can expect multiple bullish factors in the third quarter, with overall improvement in electricity prices, electricity consumption, and coal prices, which are worth investing in, and similarly, there are investment opportunities in other sectors such as hydropower, nuclear power, and wind power.