The Zhitong Finance App learned that power stocks rose again. As of press release, Huadian International (01071) rose 4.37% to HK$4.78; Huaneng International (00902) rose 3.14% to HK$5.25; China Resources Power (00836) rose 1.35% to HK$19.52; and China Electric Power (02380) rose 1.24% to HK$3.26.
Great Wall Securities said that upstream coal prices have been low in recent years and have maintained a downward trend, reducing power generation costs for thermal power companies; downstream electricity price transmission is lagging behind, electricity price levels are still expected to rise, and the certainty of first-quarter results and profits has increased. Haitong International, on the other hand, pointed out that thermal power is low in profit and undervalued. The bank expects a dividend rate of at least 6% in 2024, and Hong Kong stocks may exceed 10%. Overseas power leading PE is generally around 20 times higher, and domestic thermal power investment opportunities are obvious.