Investment Rating - The report suggests a positive investment outlook for the electricity operators, highlighting low valuations and high dividend yields, particularly for companies like China Power (2380.HK) and China Resources Power (836.HK) [1][5]. Core Insights - The total electricity consumption in June 2025 increased by 5.4% year-on-year, with a cumulative growth of 3.7% for the first half of the year, indicating a continuous recovery in electricity demand [2][5]. - The growth in electricity consumption was primarily driven by the tertiary industry and residential electricity usage, which saw significant increases of 9.0% and 10.8% respectively in June [2][5]. - The report notes that the overall valuation of the Hong Kong electricity operator sector is low, with many stocks offering dividend yields exceeding 6%, and the decline in coal prices supports profitability in thermal power generation [1][5]. Summary by Sections Electricity Consumption Data - In June 2025, the total electricity consumption reached 867 billion kWh, marking a 5.4% increase year-on-year and a 7.1% increase month-on-month [2]. - For the first half of 2025, total electricity consumption was 48,418 billion kWh, reflecting a 3.7% year-on-year growth [2]. Industrial Power Generation - The industrial power generation in June 2025 grew by 1.7% year-on-year, with a total of 7,963 billion kWh generated [4]. - The report highlights that nuclear and solar power generation saw significant growth rates of 10.3% and 18.3% respectively, while thermal power generation growth slowed to 1.1% [4]. Sector Performance - The report emphasizes that the electricity operator sector in Hong Kong is currently undervalued, with performance growth outpacing the industry average [5]. - Recommended stocks include China Resources Power (836.HK) and China Power (2380.HK), which are characterized by low valuations and high dividend yields [1][5].