On April 30, electricity stocks rose collectively. As of press release,$HUANENG POWER (00902.HK)$increased by 3.93% to HK$5.02;$HUADIAN POWER (01071.HK)$increased by 2.91% to HK$4.25;$DATANG POWER (00991.HK)$rose 2% to HK$1.53;$CHINA RES POWER (00836.HK)$It rose 1.55% to HK$19.68.

According to the news, many thermal power companies performed well in the first quarter, benefiting from power generation exceeding expectations and falling coal prices. In the first quarter, Huaneng International achieved net profit of 4.596 billion yuan, up 104.25% year on year; Huadian International achieved net profit of 1,862 billion yuan, up 64.21% year on year; Datang Power achieved net profit of about 1,331 billion yuan, up 8.72 times year on year; Guodian Electric achieved net profit of 1,785 billion yuan, up 88.62% year on year.

Dongwu Securities pointed out that there is a global electricity shortage, a rapid drop in coal prices entering the off-season, and an improvement in expected dividend rates in the thermal power sector, focusing on thermal power investment opportunities at the current time. Galaxy Securities said earlier that the overall performance of the power sector is highly deterministic and has strong dividend capacity, and will continue to benefit from central state-owned enterprise reforms in the future. The bank continues to be optimistic about the long-term investment value of the electricity sector. In the short term, we recommend a thermal power sector with policy catalyst, continuous improvement in performance, and room for improvement in valuation.