Movement Alert|CHINA RES POWER Rises 3.05% in Regular Trading, Electricity Price Recovery Expectations Lift Power Sector

Market Focus
Sep 28

On September 28, CHINA RES POWER rose 3.05% in regular trading, trading at HK$19.6 per share, with turnover of HK$107 million. The move came amid a broad-based rally in the power sector, driven by strengthening expectations that annual long-term contract electricity prices could rebound next year.

On the news front, multiple industry research reports noted that Qinhuangdao Q5500 thermal coal spot prices have surged to RMB 979 per ton, a significant year-over-year increase. Under coal price pressure, annual long-term electricity contract prices for next year are expected to stabilize and recover. Notably, monthly electricity prices in Guangdong and Jiangsu have already exceeded annual contract levels, with Guangdong October monthly prices reaching RMB 0.457/kWh — RMB 0.085 above annual contracts — reinforcing the upward trend. Meanwhile, wind and solar new installations in the first seven months fell over 50% year-over-year, and only 14GW of thermal power was approved in the first eight months, pointing to slowing supply growth and improving power supply-demand dynamics.

Sector peers rallied in tandem, with HUANENG POWER up 3.29%, CGN NEW ENERGY up 3.87%, and CGN POWER up 2.89%. CHINA RES POWER's first-half thermal power profit rose 16.1% year-over-year, demonstrating resilient operations. Deutsche Bank recently raised its target price to HK$23.5, maintaining a Buy rating.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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