According to the Zhidao Finance App, electric power stocks are generally rising. As of press time, CGN Power (01816) rose 3.68%, to HKD 3.88; China Power (02380) rose 3.23%, to HKD 3.84; China Res Power (00836) rose 2.16%, to HKD 23.65; and Huadian Power International Corporation (01071) rose 1.18%, to HKD 5.15.
On the news front, the National Energy Administration recently issued a "Notice on Ensuring the High-Quality Development of New Energy Consumption Work," comprehensively promoting the construction of a new power system. The notice clarifies the role of the electricity market mechanism, accelerates the construction of the electricity spot market, and further promotes the participation of new energy in the electricity market. Prior to this, the State Council issued an energy-saving and carbon-reduction action plan, specifically targeting the power industry. The plan promotes important tasks such as advancing the flexible transformation of coal-fired power, enhancing the absorption capacity of renewable energy, putting forward requirements for the proportion of non-fossil fuel power generation in 25 years, improving price policies, and implementing capacity-based electricity prices.
Shanxi Securities pointed out that attention should be paid to investment opportunities for thermal power companies' valuation reshaping and enhancement under the new power market reform. On the demand side, electricity load is expected to increase substantially this summer. In the long run, as new productivity and energy replacement trends develop, electricity demand may further increase. On the supply side, the advantages of thermal power flexibility will be highlighted as the summer peak approaches. In the long run, with the gradual promotion of the auxiliary service and capacity-based electricity pricing mechanisms, the stable profitability and dividend-paying capability of thermal power enterprises are expected to improve, and new value points under improved business models are still waiting to be explored in the market.