Thermal power stocks experienced a collective downturn. As of writing, DATANG POWER (00991) fell 7% to HK$2.79; HUADIAN POWER (01071) dropped 4.79% to HK$4.37; HUANENG POWER (00902) declined 3.85% to HK$6.49.

On the data front, industrial power generation above designated size reached 744 billion kilowatt-hours in April, a year-on-year increase of 2.6%, with the growth rate accelerating by 1.2 percentage points compared to March. The average daily generation was 24.8 billion kilowatt-hours. Within this, thermal power generation above the designated size grew by 3.1% year-on-year, though the growth rate slowed by 1.1 percentage points from March.

A research report from Huayuan Securities noted that the thermal power sector achieved a record high in net profit attributable to shareholders in 2025, with the first quarter of 2026 showing a stable start. The report anticipates that thermal power operators may face performance pressure in the second quarter due to rising coal prices and the off-peak electricity consumption season. However, the third quarter, during the peak electricity demand period, may see operators frequently reflecting their price increase demands. The report expresses optimism regarding the year-end thermal power tariff negotiations, suggesting that operators are poised for improvements in both earnings per share (EPS) and price-to-earnings (PE) ratios within a cycle of tariff recovery and supply-demand enhancement.