Shang Hai Zheng Quan Bao·2025-07-04 19:00Group 1: Market Overview - A-share major indices showed mixed performance on July 4, with the Shanghai Composite Index closing at 3472.32 points, up 0.32%, while the Shenzhen Component Index fell 0.25% to 10508.76 points [2] - The total trading volume in the Shanghai and Shenzhen markets reached 142.86 billion yuan, an increase of approximately 120 billion yuan compared to the previous trading day [2] Group 2: Power Sector Performance - The power sector saw significant gains, with multiple stocks hitting the daily limit up, driven by positive earnings forecasts from several power companies [2] - Huayin Power announced an expected net profit of 180 million to 220 million yuan for the first half of 2025, an increase of 175 million to 215 million yuan compared to the same period last year [2] Group 3: Investment Opportunities in Power Sector - China Galaxy Securities' mid-term strategy report for the power industry highlights investment opportunities in the second half of the year, focusing on improved profitability in thermal power due to declining coal prices, attractive dividend yields in hydropower, long-term growth in nuclear power, and clear revenue expectations in renewable energy [3] - Despite challenges such as declining electricity volume and prices, thermal power is expected to benefit from significant coal price reductions, providing room for profit improvement [3] Group 4: Solar Energy Sector Activity - The solar energy sector has been active, with stocks like Hopu Co. and Yamaton experiencing significant gains, driven by policies aimed at phasing out outdated production capacity [4] - Recent government meetings emphasized the need to address low-price competition in the solar industry and promote sustainable development [4] - The polysilicon market is showing signs of recovery, with prices slightly increasing due to stable production and easing supply-demand tensions [4] Group 5: Earnings Outlook and Sector Focus - Historical trends indicate that July and August in the A-share market will focus on semi-annual earnings reports, with structural opportunities expected to dominate [5] - Sectors with strong earnings certainty include wind power, gaming, and rare earths, while some renewable energy segments are seen as having reached reasonable valuation levels [5] - The macroeconomic outlook for July is stable, with expectations for trading to revolve around earnings reports [5] Group 6: Defensive Investment Strategies - Given uncertainties in the overseas market, high-dividend sectors such as telecommunications and electricity are recommended as risk-hedging investments [6] - If external conditions improve, sectors like non-bank financials may drive indices upward, warranting attention to insurance and brokerage firms [6]