On July 5th, Guolong News reported that UBS issued a report pointing out that the basic factors of China's domestic electrical utilities industry are strong, and the preferred stocks are CGN Power, China Resources Power, China National Nuclear Power, and China Yangtze Power. Among them, CGN Power's target price was raised from HK$3.9 to HK$4.6, and China Resources Power's target price was raised from HK$25 to HK$31, and both were rated as "Buy". The report pointed out that although the stock price of domestic electrical utilities has risen strongly by 33% to HK$78 since the beginning of the year, the stock price performance is still expected to be bullish due to strong fundamental factors, including structural electricity demand growth and potential residential electricity price increases, which are currently only partially reflected in stock prices. The report mentioned that based on higher electricity demand growth assumptions, from 5.2% in 2024-2026 to 7.5%, while the market expectation is 7%, plus valuation reevaluation, the stock price of China's domestic electrical utilities is expected to further rise. The potential electricity reform is another key factor driving the stock price up, which may include a rise in residential electricity prices.