The Zhitong Finance App learned that power stocks continued to rise in early trading. As of press release, Huadian International (01071) rose 5.99% to HK$4.6; Huaneng International (00902) rose 4.72% to HK$5.33; Datang Power (00991) rose 3.77% to HK$1.65; and China Resources Electric (00836) rose 2.13% to HK$21.55.
According to the news, the China Telecommunication Union recently released the “National Electricity Supply and Demand Situation Analysis and Forecast Report for the First Quarter of 2024”. The report predicts that the electricity consumption of the entire society in 2024 will be 9.8 trillion kilowatt-hours, an increase of about 6% over 2023. Among them, the electricity consumption rate of the whole society in the first half of the year was slightly higher than 8% year-on-year.
Cinda Securities believes that after many rounds of domestic power supply and demand tension, the power sector is expected to experience improved profits and a revaluation of value. In a situation where electricity supply and demand are tense, the peak value of coal and electricity is highlighted; with the continuous advancement of market-based electricity reforms, the electricity price trend is expected to rise steadily and slightly, the electricity spot market and auxiliary service market mechanisms are expected to continue to be promoted, and the capacity electricity price mechanism is officially introduced, clarifying the cornerstone position of coal and electricity. The construction of new power systems under the dual carbon target may continue to rely on the abundance and investment of system regulation methods. Furthermore, as the Development and Reform Commission increases the electricity and coal commissioner's guarantee and supply efforts, the actual compliance rate of the Electricity and Coal General Cooperation is expected to rise marginally. We judge that the cost side of coal power companies is relatively manageable.