Core Viewpoint - The power sector is experiencing a significant rise in stock prices, driven by a record-breaking electricity consumption in July and favorable conditions for thermal power companies [1] Group 1: Stock Performance - Longyuan Power (001289)(00916) increased by 6% to HKD 7.42 [1] - China Power (02380) rose by 3.65% to HKD 3.41 [1] - Huaneng International (600011)(00902) gained 2.79% to HKD 5.89 [1] - China Resources Power (00836) climbed 2.51% to HKD 18.78 [1] Group 2: Electricity Consumption - In July, the total electricity consumption in China reached 1.02 trillion kWh, marking the first time it surpassed 1 trillion kWh in a month [1] Group 3: Industry Insights - Dongguan Securities reported that the rapid development of renewable energy is squeezing the market share of thermal power, leading to a year-on-year decline in revenue for several thermal power companies [1] - Despite the decline in revenue, companies like Huaneng International and Huadian International (600027) achieved year-on-year growth in net profit due to falling fuel prices [1] - Average coal prices have decreased year-on-year, which is beneficial for the profitability of thermal power companies [1] Group 4: Future Outlook - Bank of America noted that the performance of Chinese power stocks in the first half of the year largely met expectations [1] - Guosheng Securities projected that the overall performance of the power sector will align with expectations, with thermal power seeing revenue decline but profit increase, while hydropower remains stable and green energy faces pressure [1] - The current electricity prices are expected to bottom out and rebound, with demand recovery anticipated to boost electricity consumption and continued decline in fuel costs [1]

Core Viewpoint - The power sector is experiencing a significant rise in stock prices, driven by a record electricity consumption milestone and favorable market conditions for thermal power companies [1] Group 1: Stock Performance - Longyuan Power (00916) increased by 6% to HKD 7.42 [1] - China Power (02380) rose by 3.65% to HKD 3.41 [1] - Huaneng International (00902) gained 2.79% to HKD 5.89 [1] - China Resources Power (00836) saw a 2.51% increase to HKD 18.78 [1] Group 2: Electricity Consumption - In July, the total electricity consumption in China reached 1.02 trillion kilowatt-hours, marking the first time it surpassed one trillion kilowatt-hours in a month [1] Group 3: Industry Analysis - Dongguan Securities reported that the rapid development of renewable energy is squeezing the market share of thermal power, leading to a decline in revenue for several thermal power companies [1] - Despite the decline in revenue, companies like Huaneng International and Huadian International achieved year-on-year growth in net profit due to falling fuel prices [1] - Average coal prices have decreased year-on-year, contributing to improved profitability for thermal power companies [1] Group 4: Future Outlook - Bank of America noted that the performance of Chinese power stocks in the first half of the year generally met expectations [1] - Guosheng Securities projected that the mid-year report for the power industry in 2025 would show a decline in revenue but an increase in profits for thermal power, stable performance for hydropower, and pressure on green energy [1] - The current electricity prices are expected to bottom out and rebound, with demand recovery anticipated to boost electricity consumption, while fuel costs continue to decline [1]