The Zhitong Finance App learned that Daiwa released a research report stating that the investment rating of China Electric Power's stock sector was raised from “negative” to “positive.” Among them, the investment rating of China Electric Power (02380) was raised from “outperforming the market” to “buy”, but the target price was lowered 4.88% from HK$4.1 to HK$3.9; maintaining Longyuan Electric Power (00916) The “buy” rating, but the target price was lowered by 8.33% from HK$12 to HK$11; the rating of Datang New Energy (01798) was upgraded from “hold” to “outperform the market”, maintaining the target price of HK$3.15; and the rating of China Resources Electric Power (00836) was raised from “hold” to “outperform the market”, and the target price was raised 4.44% from HK$18 to HK$18.8.

The bank said that China Power's stocks are a good example of defensive behavior under the mainland economic situation. Because upstream costs have entered a downward cycle, in the long run, the power system with large-scale deployment of renewable energy has received strong support from China's policy. However, the bank also raised the main risk that coal prices are higher than expected and the amount of renewable energy installed is lower than expected.