Sou Hu Cai Jing·2025-07-07 12:22Core Viewpoint - The recent surge in stock prices for power and related sectors is driven by increased electricity demand due to extreme heat, alongside positive financial forecasts from key companies in the industry [10][11][16]. Group 1: Company Performance - Shaoneng Co., Ltd. (韶能股份) has seen its stock price reach a limit up at 6.12 CNY per share, marking a 10.07% increase [3][4]. - Huayin Electric Power (华银电力) also hit a limit up, trading at 6.70 CNY per share, with a 10.02% increase. The company anticipates a net profit of 180 million to 220 million CNY for the first half of 2025, significantly up from the previous year [7]. - The average stock price increase for 126 companies in the high-temperature concept sector since June has been 4.49%, outperforming the Shanghai Composite Index [14]. Group 2: Market Trends - The national electricity load reached a historical high of 1.465 billion kilowatts on July 4, 2023, reflecting a rise of approximately 200 million kilowatts since the end of June [10]. - The demand for air conditioning is expected to rise significantly due to the ongoing heatwave, with air conditioning load accounting for about 37% of the total load in the East China grid [10][16]. - The market for sunscreen products is expanding rapidly, with projections indicating that the market size for sunscreen apparel will exceed 80 billion CNY by 2024 [12]. Group 3: Future Outlook - The power sector is likely to experience a new round of market activity due to the anticipated tight supply and demand during the peak electricity usage months from June to September [16]. - The correlation between temperature increases and air conditioning sales suggests that extreme heat will likely boost sales in the cooling sector [16].