Daiwa published a Research Report indicating that the latest data from the Jiangsu Provincial Electrical Utilities Trading Center shows that the overall electricity price in the province will decrease by 40 yuan per megawatt-hour in 2025, a reduction of 8.9%, which is basically in line with market expectations and Daiwa's forecasts. It is believed that this comprehensive decrease in electricity prices will have a controllable impact on coal-fired and hydroelectric power companies.

Daiwa forecasts that the electricity price drop in Jiangsu Province next year will lead to a narrowing of the dark spread for coal companies by 9 to 15 yuan per megawatt-hour, some of which has already been offset by lower coal prices, while for hydropower, it is expected to have an impact on profits of about 1% to 4%.

The firm maintains a neutral view on the CHINA POWER Industry and has given "Hold" ratings to China Yangtze Power (600900.SH), CHINA RES POWER (00836.HK), and Huaneng Power International (00902.HK), believing that negative factors have already been reflected in their stock price performance. Additionally, due to a continued Bearish outlook on Wind Power, Daiwa maintains an "Underperform" rating for CHINA LONGYUAN (00916.HK). Currently, the electrical utilities industry has a preference for thermal power companies.