On June 6th, electric power stocks continued to rise. As of the time of writing, $HUADIAN POWER (01071.HK)$China Res Power (00836.HK) rose 2.19%, to HKD 23.3; $HUANENG POWER (00902.HK)$Datang International Power Generation (00991.HK) rose 2.45%, to HKD 1.67.$CHINA RES POWER (00836.HK)$Up 2.19%, trading at HKD 23.3;$DATANG POWER (00991.HK)$Up 2.45%, trading at HKD 1.67.

In recent news, Jiangsu Province announced the results of the centralized power trading in June, with a total trading volume of 5.467 billion kilowatt-hours and a transaction price of RMB 410 per megawatt-hour. In June, the monthly price of Jiangsu Province's long-term electricity contract was 4.9% higher than the benchmark price, down RMB 43 per megawatt-hour from the annual long-term electricity contract price of RMB 453 per megawatt-hour, a month-on-month decrease of RMB 25 per megawatt-hour.

China Securities Co., Ltd. pointed out that the decrease in monthly long-term electricity prices was mainly due to the overall supply and demand situation of electricity and the drop in coal prices. Considering that the annual long-term electricity price lock-in effect remains unchanged, we believe that there is no need to be overly concerned about the profitability of coal-fired power plants with a slight decline in monthly electricity prices under this background. With the continuous promotion of electric power reform, coal-fired power generation will gradually transform into a supportive power source, and the profitability model will also shift from a single electricity quantity and price to diversified income models such as electricity quantity and price, capacity and price, and auxiliary services. The stability of the profitability of coal-fired power generation is expected to continue to increase. In addition, the dividend payout ratio of coal-fired power companies is expected to gradually increase, and the dividend attribute of coal-fired power is also expected to be strengthened.