Daiwa issued a research report stating that Guangdong Province announced the long-term electricity price results for next year, with an average electricity price of 391.9 yuan per megawatt hour, a year-on-year decrease of 15.9%, and a discount of 13.5% compared to the local benchmark electricity price. Although there were significant negative expectations in the market beforehand, the results are likely to differ greatly from market expectations, and the outlook for local coal power plants is not optimistic, as large-scale price reductions could offset all unit profits for next year.

Daiwa expects that China General Nuclear Power (01816.HK) will also be affected in its earnings per share next year, which is expected to drop by 3.8% to 0.089 yuan, implying a dividend yield of about 3.4%. However, the yield gap between domestic 10-year treasury bond rates and the removal of uncertainty regarding electricity prices may still hold some appeal for certain long-term Funds.