According to the Zhitong Finance and Economics app, electric power stocks continued to rise in early trading. Huadian International (01071) rose 4.05% to HKD 5.14; Huaneng International (00902) rose 3.76% to HKD 5.52; Datang International Power Generation (00991) rose 3.76% to HKD 5.52; China Resources Power (00836) rose 2.76% to HKD 23.7.

Haitong Securities believes that the current power reform and low-carbon transformation are mutually driving, and the core difficulty the system still faces is the consumption of new energy. The capacity and ancillary services difficulties faced by the power system are mainly solved by thermal power generation at present. Currently, power plant inventory is at a high level, and the difficulty of rising coal prices has increased. It is bullish on the continued improvement of the thermal power industry, and hydro and green power are also worth paying attention to.

CITIC Securities pointed out that the monthly electricity price in Jiangsu fell month-on-month in June, mainly affected by the power supply and demand situation and the decline in coal prices. Considering the unchanged effect of annual long-term contract electricity price locking, we believe there is no need to excessively worry about the profitability of coal-fired power. With the continuous advancement of the power reform, coal-fired power will gradually transform into supporting power sources, and the profitability model will also gradually transform from a single electricity price to diversified revenue models such as capacity price and auxiliary services. The stability of the profitability of coal-fired power is expected to continue to improve. In addition, the dividend ratio of coal-fired power companies is expected to gradually increase, and the dividend attributes of coal-fired power are also expected to be strengthened.