According to the Wise Finance APP, electric power stocks fell across the board today. As of the time of publication, Huadian Power International Corporation (01071) fell by 4.26% to HK$4.04; China Res Power (00836) fell by 2.43% to HK$20.05; Huaneng Power International,Inc. (00902) fell by 1.35% to HK$4.38.

Hua Yuan Securities pointed out that the comprehensive coal-fired sector prices slightly increased in the third quarter compared to last year. Coupled with the decline in coal-fired on-grid electricity prices this year compared to last year, it is expected that the price difference for coal-fired companies in the third quarter will narrow, affecting performance. Our analysis shows that national leading companies such as Huaneng Power International, Inc. and Huadian Power International Corporation are expected to have a significant decline in performance in the third quarter, but the coal-fired sector as a whole achieved positive growth in performance in the first three quarters.

Yangtze Securities indicated that overall, the performance of thermal power in the third quarter of this year is still expected to maintain growth compared to the same period last year, with a relatively narrow growth rate. Although coal prices were relatively low in the same period last year, it is difficult to have a positive contribution to the cost side in the third quarter this year. In 2024, the annual transaction electricity prices in most regions are expected to decline year-on-year, and the monthly agency purchase electricity prices also show similar changes; the decline in thermal power generation volume year-on-year in July is more obvious. Although thermal power performance has improved since August and is expected to grow year-on-year in the third quarter overall, the positive contribution to the profit of thermal power is limited.