--- title: "Minsheng Securities: The peak electricity consumption season is approaching, and the fundamentals of the power sector are expected to continue to strengthen steadily" type: "News" locale: "en" url: "https://longbridge.com/en/news/239439411.md" description: "Minsheng Securities released a research report indicating that the power sector is expected to continue its steady upward trend in the upcoming peak electricity consumption season. Benefiting from a significant drop in coal prices, the performance of thermal power is steadily increasing, with an expected year-on-year growth of 31% in net profit attributable to the parent company for the thermal power sector in 2024. At the same time, hydropower companies are showing stable performance, with a premium advantage in dividend yield. Key companies to focus on include FUNENG CO.,LTD. and JEI. Despite facing pressures from declining electricity prices and increased renewable energy generation, the growth resilience of the power sector remains strong" datetime: "2025-05-08T23:09:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/239439411.md) - [en](https://longbridge.com/en/news/239439411.md) - [zh-HK](https://longbridge.com/zh-HK/news/239439411.md) generator: "portal-rs" --- # Minsheng Securities: The peak electricity consumption season is approaching, and the fundamentals of the power sector are expected to continue to strengthen steadily According to the Zhitong Finance APP, Minsheng Securities released a research report stating that benefiting from the significant drop in coal prices, the performance of thermal power in the first quarter has steadily increased. As the second and third quarters enter the peak electricity consumption season, with coal prices remaining low, the performance of thermal power is expected to continue improving. Some companies are actively laying out quality assets such as wind power and cogeneration, with promising long-term growth potential. Key focuses include FUNENG CO.,LTD. (600483.SH), JEI (000600.SZ), Gansu Energy (000791.SZ), and China Huadian Corporation (600027.SH). The performance of large hydropower companies remains stable and upward, and in the context of declining interest rates, the dividend yield still has a premium advantage, with stable dividend payout expectations. Key focuses include Yangtze Power (600900.SH) and Sichuan Investment Energy (600674.SH). **Fundamentals resonate with market style, and the performance period power index strengthens.** In Q1 2025, the A-share market style still prefers technology growth stocks. The power sector, facing a weak beta market, has not performed as well as the ChiNext Index at the beginning of the year. In mid to late April, under the impact of U.S. tariff policies, coupled with the market style gradually transitioning from a preference for technology growth to performance verification, the power sector shows strong growth resilience. Moving forward, the power sector has rigid demand growth characteristics, and the second and third quarters will welcome the peak electricity consumption season, with the sector's fundamentals expected to continue to be robust. **Hydropower and thermal power performance upward, green electricity profit pressure, nuclear power short-term fluctuations.** **Thermal Power:** "Volume and price both decline" affects revenue scale in 2024. In 2024, due to the decline in electricity prices, the sales revenue of thermal power companies decreased, with total revenue reaching 1.2189 trillion yuan, a year-on-year decrease of 1%. Affected by warmer temperatures, the growth rate of electricity consumption in Q1 2025 is relatively low, coupled with the rapid growth of new energy generation, which continues to squeeze thermal power generation. The simultaneous decline in volume and price led to Q1 thermal power sector revenue of 286.9 billion yuan, a year-on-year decrease of 8%. However, benefiting from the significant drop in coal prices, thermal power profitability continues to stabilize upward, with the net profit attributable to the parent company in the thermal power sector reaching 65.6 billion yuan in 2024, a substantial year-on-year increase of 31%. In Q1 2025, under the trend of declining electricity prices, the net profit attributable to the parent company reached 21.9 billion yuan, an increase of 8% year-on-year. **Hydropower:** Performance is stable with an upward trend, and new units contribute new electricity generation. In 2024, benefiting from abundant water inflow, operating revenue reached 194.409 billion yuan, a year-on-year increase of 8.98%. However, due to tax payments, the performance of "two investments" is under pressure, suppressing the growth rate of the hydropower sector's performance. In Q1 2025, affected by the decline in market-oriented electricity prices in Guangxi, Guangdong, Jiangsu, and other regions, the revenue growth rate of hydropower companies slowed, with revenue increasing by 8.63% year-on-year. The overall generation of hydropower companies is favorable, and some newly commissioned hydropower stations contribute to electricity generation, resulting in a year-on-year performance growth of 28.11%. **Nuclear Power:** Installed capacity continues to increase, and electricity prices are disturbed in the short term. The decline in profitability in 2024 is mainly affected by the tax expenses corresponding to the value-added tax refund, with net profit attributable to the parent company decreasing by 8.23%. In Q1 2025, performance fluctuated due to disturbances in electricity prices. **Wind and Solar:** The proportion of grid parity projects increases, and comprehensive electricity prices decline, while the green electricity industry still faces the dilemma of "increased revenue without increased profit." The green electricity industry achieved operating revenue of 143.537 billion yuan in 2024, a year-on-year increase of 0.27%; net profit attributable to the parent company was 23.992 billion yuan, a year-on-year decrease of 6.48% In Q1 2025, the operating revenue reached 35.049 billion yuan, a year-on-year decrease of 3.35%; the net profit attributable to the parent company was 7.744 billion yuan, a year-on-year decrease of 6.32% ### Related Stocks - [000600.CN](https://longbridge.com/en/quote/000600.CN.md) - [600483.CN](https://longbridge.com/en/quote/600483.CN.md) - [600900.CN](https://longbridge.com/en/quote/600900.CN.md) - [600674.CN](https://longbridge.com/en/quote/600674.CN.md) ## Related News & Research - [If I could invest $500 in just 1 ETF in September, here's what I'd buy](https://longbridge.com/en/news/298347627.md) - [ZAWYA: Nigeria: How public funds were moved from LG account into crypto wallets ?](https://longbridge.com/en/news/298209591.md) - [Trump Says Oil Prices Will Drop 'Precipitously' Once the US Wins Iran War, As Gas Hits Record Labor Day High](https://longbridge.com/en/news/298258707.md) - [Iran increases gasoline price for its heaviest consumers as economy struggles](https://longbridge.com/en/news/298233018.md) - [The Refining Squeeze Behind Record Diesel Prices](https://longbridge.com/en/news/298199063.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**