DHEP(SH:600744) 经济观察报·2025-07-09 12:44Core Viewpoint - The continuous increase in electricity consumption has sparked interest in the power industry, with multiple power stocks gaining significant attention in the A-share market since July [1][11]. Group 1: Market Performance - The power sector has been a focal point in the A-share market, with notable performance from Huayin Power (600744.SH), which achieved six consecutive trading days of price increases from July 1 to July 9, resulting in a cumulative increase of 63.41% [2][4]. - The electricity index rose by 2.89% during the same period, outperforming the Shanghai Composite Index (1.41%), Shenzhen Component Index (1.11%), and CSI 300 Index (1.41%) [2]. - Huayin Power's stock price surged by 160.77% year-to-date, closing at 8.11 yuan per share with a total market capitalization of 16.5 billion yuan as of July 9 [2]. Group 2: Factors Driving Demand - Seasonal peaks in electricity demand during summer months are expected to enhance performance, as high temperatures lead to increased electricity consumption for cooling [12]. - The rise of artificial intelligence and data centers is driving a surge in electricity demand, with the International Energy Agency (IEA) predicting a 4% increase in global electricity demand over the next two years, the highest annual growth rate since 2007 [12]. - Ongoing upgrades to the power grid are improving transmission capacity and flexibility, benefiting power generation companies by optimizing resource allocation and enhancing profit margins [12]. Group 3: Cost Factors - A decline in coal prices is favorable for thermal power companies, as coal is a significant production cost. Lower coal prices are expected to translate into increased profitability for these companies [13]. - Long-term demand for electricity is anticipated to remain stable, with coal prices expected to stabilize or decrease, allowing for sustained profit margins in the industry [14].