Financial Services Association, September 23 (Edited by Hu Jiarong) Benefiting from today's favorable morning trading, Hong Kong's power stocks were among the top performers. As of press release, Huadian Power International (01071.HK), CGN Power (01816.HK), CGN New Energy (01811.HK), and China Resources Power (00836.HK) rose 5.64%, 5.24%, 5%, and 4.69% respectively.

Note: Performance of Hong Kong Electric Power Stocks

In terms of news, the National Energy Administration today released national power industry statistics for January-August. By the end of August, the country's cumulative installed power generation capacity was about 3.13 billion kilowatts, an increase of 14% over the previous year. Among them, the installed capacity of solar power generation was about 0.75 billion kilowatts, up 48.8% year on year; the installed capacity of wind power was about 0.47 billion kilowatts, up 19.9% year on year.

Note: National Electric Power Industry Statistics List (as of August 2024)

In January-August, the cumulative average utilization of power generation equipment across the country was 2,328 hours, a decrease of 103 hours over the same period last year. Major power generation companies in the country completed investment of 497.6 billion yuan in power projects, an increase of 5.1% over the previous year. The grid project completed an investment of 333 billion yuan, an increase of 23.1% over the previous year.

The agency says the high prosperity of the power grid is being realized at an accelerated pace

In its fourth quarter outlook, Guojin Securities predicts that orders for power transformers, high voltage switches, and smart meters from overseas markets in 2023 will enter a centralized delivery period.

According to the agency's research report, China's inverter exports in August were 6.16 billion yuan, up 24.2% year on year and 10.0% month on month, which strengthened the market's expectations for inverter exports to resume positive growth in the third quarter.

By province, Zhejiang province's inverter export value reached 1.9 billion yuan, up 165% year on year, up 19% month on month; Guangdong province's export value was 2.1 billion yuan, up 4% year on year, down 6% month on month; Anhui province's export value was 1.02 billion yuan, down 9% year on year, up 56% month on month; Jiangsu province's export value was 0.63 billion yuan, up 15% year on year, up 23% month on month.

Guojin Securities also mentioned that the mid-term results of a number of key companies met or exceeded market expectations, dispelling market concerns about second-quarter results. Looking ahead to the next few months, overseas products such as power transformers, high voltage switches, and smart meters are expected to be delivered centrally in the third and fourth quarters. On the domestic side, UHV and transmission and transformation projects are expected to receive a large number of tenders, DC projects will continue to be delivered, and demand outside the power grid is also expected to improve. The agency reiterated that there are opportunities to exceed expectations in domestic and foreign markets.