Xin Lang Cai Jing·2025-07-04 03:17Core Viewpoint - The electricity sector is experiencing positive momentum, with significant growth in the Electric Power ETF and favorable market conditions driven by rising temperatures and stable electricity demand [1][2][3] Group 1: Market Performance - The CSI All Share Electric Power Utility Index (H30199) increased by 0.78% as of July 4, 2025, with notable gains in constituent stocks such as Huayin Electric Power (600744) hitting the daily limit, and GCL-Poly Energy (002015) rising by 8.24% [1] - The Electric Power ETF (159611) saw a nearly 1% increase, with a turnover rate of 2.44% and a transaction volume of 80.6094 million yuan [1] - Over the past year, the Electric Power ETF's scale grew by 1.037 billion yuan, ranking first among comparable funds, while its share count increased by 1.8 billion shares in the last six months [1] Group 2: Valuation and Index Composition - The latest price-to-earnings ratio (PE-TTM) for the CSI All Share Electric Power Utility Index is 17.12, indicating a valuation lower than 83.9% of the time over the past three years, suggesting it is at a historical low [1] - As of June 30, 2025, the top ten weighted stocks in the index accounted for 55.43% of the total, including major players like China Yangtze Power (600900) and China Nuclear Power (601985) [2] Group 3: Electricity Demand and Consumption - In May, the total electricity consumption reached 809.6 billion kWh, reflecting a year-on-year growth of 4.4%, while the cumulative consumption from January to May was 39,665 billion kWh, up 3.4% year-on-year [3] - The industrial electricity generation for May was 737.8 billion kWh, with a year-on-year increase of 0.5%, indicating a slight slowdown compared to April [2][3] - Analysts suggest a stable growth in electricity demand across various industries, with a recommendation to focus on thermal power and renewable energy companies, as well as leading firms in hydropower and nuclear power sectors [3]