--- title: "Tianfeng Securities Public Utilities 2025 Strategy: Opportunities in thermal power may lie in trading coal prices falling below expectations, and hydropower company valuations may reach new highs" type: "News" locale: "en" url: "https://longbridge.com/en/news/224692876.md" description: "Tianfeng Securities released its 2025 strategy, pointing out that the profitability of thermal power is affected by coal prices and electricity prices. It is expected that coal prices will be weak, and the opportunity for the thermal power sector lies in an unexpected decline in coal prices. Recommendations include China Huadian Corporation, Shenergy, ZZEPC, and Anhui Energy. Hydropower companies maintain stable performance, and valuations may reach new highs, with recommendations for China Yangtze Power, Sichuan Investment Energy, Huaneng Hydropower, and SDIC Power. The performance of nuclear power is expected to be stable, with limited stock price adjustments" datetime: "2025-01-13T00:12:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/224692876.md) - [en](https://longbridge.com/en/news/224692876.md) - [zh-HK](https://longbridge.com/zh-HK/news/224692876.md) --- # Tianfeng Securities Public Utilities 2025 Strategy: Opportunities in thermal power may lie in trading coal prices falling below expectations, and hydropower company valuations may reach new highs According to the Zhitong Finance APP, Tianfeng Securities released a research report stating that in the current outlook for the profitability of coal-fired power in 2025, the main market expectation difference lies in coal prices and monthly electricity prices. As of December 17, the Qinhuangdao Port power-grade thermal coal closing price Q5500 has dropped to 780 yuan/ton. Currently, the supply and inventory of coal in the mid and downstream sectors remain relatively sufficient, and the short-term trend of coal prices may still be weak. The opportunity for the thermal power sector may lie in trading coal prices falling below expectations. Recommended stocks: Huadian International (600027.SH), Shenergy (600642.SH), ZZEPC (600023.SH), Anhui Energy (000543.SZ). ## The main points of Tianfeng Securities are as follows: **(1) Thermal Power:** In the current outlook for the profitability of coal-fired power in 2025, the main market expectation difference lies in coal prices and monthly electricity prices. As of December 17, the Qinhuangdao Port power-grade thermal coal closing price Q5500 has dropped to 780 yuan/ton. Currently, the supply and inventory of coal in the mid and downstream sectors remain relatively sufficient, and the short-term trend of coal prices may still be weak. The opportunity for the thermal power sector may lie in trading coal prices falling below expectations. Recommended stocks:【Huadian International】【Shenergy】【ZZEPC】【Anhui Energy】. **(2) Hydropower:** Although the fluctuations in market-based electricity prices have a slight impact on the performance of hydropower companies, considering factors such as the decline in financing loan rates, it is expected that the overall performance of hydropower companies will remain stable in 2025. Although the current valuation level of hydropower companies is at a historically high level, the domestic risk-free interest rate is declining rapidly. There will not be significant fundamental changes in hydropower in 2025, mainly depending on changes in the external environment and the expected return levels of incremental market funds. The valuation of hydropower companies in 2025 may reach new highs. Recommended stocks:【Yangtze Power】【Chuan Investment Energy】【Huaneng Hydropower】【SDIC Power】. **(3) Nuclear Power:** From the overall performance forecast, the performance of China National Nuclear Power and China General Nuclear Power is expected to remain stable in 2025. However, in terms of stock prices, although nuclear power stocks have seen some adjustments, the extent is limited. The valuation of nuclear power should not be overly pessimistic: on one hand, the continuous commissioning of new nuclear power units may smooth out the performance fluctuations brought about by marketization, while the proportion of marketization may have an upper limit; on the other hand, as interest rates continue to decline and hydropower valuations rise, the valuation level of nuclear power is also expected to follow suit. Suggested attention:【CGN Power H】【China National Nuclear Power】【China General Nuclear Power】. **(4) Green Power:** The valuation of green power has been relatively low in recent years, mainly due to two reasons: renewable energy subsidy funds + the full market entry of new energy electricity prices. Against the backdrop of significant "debt reduction" in 2025, the resolution of renewable energy subsidy funds may accelerate. The full market entry of new energy electricity prices is an inevitable trend, but entry does not mean a significant decline in electricity prices. The valuation of green power is at a relatively low level, providing high investment cost-effectiveness. Suggested attention:【Longyuan Power H】【Datang New Energy】【Xintian Green Energy H】【Solar Energy】. **(5) Natural Gas:** In 2024, the natural gas industry faces growth pressure in connection businesses due to the downturn in real estate, while high energy prices also suppress the growth of natural gas consumption demand. It is expected that the overall supply and demand situation of domestic natural gas will remain stable in 2025, and with the continuous promotion of downstream pricing, gross margins may continue to improve Recommended targets: \[Xinao Co., Ltd.\] \[China Resources Gas\] \[Xinao Energy\]. **Risk Warning:** Risks of significant macroeconomic downturn, risks of policy implementation falling short of expectations or adjustments, risks of electricity price reductions, risks of substantial increases in fuel costs, risks of new energy installation growth rates falling short of expectations, risks of increased power station construction costs, risks of water inflow falling short of expectations, risks of upstream natural gas prices fluctuating beyond expectations, and risks of subjective calculations (for reference only) ### Related Stocks - [600023.CN](https://longbridge.com/en/quote/600023.CN.md) - [600886.CN](https://longbridge.com/en/quote/600886.CN.md) - [600642.CN](https://longbridge.com/en/quote/600642.CN.md) - [300349.CN](https://longbridge.com/en/quote/300349.CN.md) - [01798.HK](https://longbridge.com/en/quote/01798.HK.md) - [000591.CN](https://longbridge.com/en/quote/000591.CN.md) - [00836.HK](https://longbridge.com/en/quote/00836.HK.md) - [01816.HK](https://longbridge.com/en/quote/01816.HK.md) - [600917.CN](https://longbridge.com/en/quote/600917.CN.md) - [02688.HK](https://longbridge.com/en/quote/02688.HK.md) - [00916.HK](https://longbridge.com/en/quote/00916.HK.md) - [01083.HK](https://longbridge.com/en/quote/01083.HK.md) - [000543.CN](https://longbridge.com/en/quote/000543.CN.md) - [00384.HK](https://longbridge.com/en/quote/00384.HK.md) - [600025.CN](https://longbridge.com/en/quote/600025.CN.md) - [601162.CN](https://longbridge.com/en/quote/601162.CN.md) - [03369.HK](https://longbridge.com/en/quote/03369.HK.md) - [600900.CN](https://longbridge.com/en/quote/600900.CN.md) - [300470.CN](https://longbridge.com/en/quote/300470.CN.md) - [301303.CN](https://longbridge.com/en/quote/301303.CN.md) - [00956.HK](https://longbridge.com/en/quote/00956.HK.md) - [600674.CN](https://longbridge.com/en/quote/600674.CN.md) - [600803.CN](https://longbridge.com/en/quote/600803.CN.md) - [601985.CN](https://longbridge.com/en/quote/601985.CN.md) - [002366.CN](https://longbridge.com/en/quote/002366.CN.md) - [01193.HK](https://longbridge.com/en/quote/01193.HK.md) - [600236.CN](https://longbridge.com/en/quote/600236.CN.md) - [688501.CN](https://longbridge.com/en/quote/688501.CN.md) - [000883.CN](https://longbridge.com/en/quote/000883.CN.md) - [002438.CN](https://longbridge.com/en/quote/002438.CN.md) - [01071.HK](https://longbridge.com/en/quote/01071.HK.md) ## Related News & Research - [Canadian electricity utility Hydro One Q2 revenue, profit rise on higher OEB-approved rates, peak demand](https://longbridge.com/en/news/295654756.md) - [ABB whitepaper flags ultracapacitor storage as route to Ireland data center grid code compliance](https://longbridge.com/en/news/295756630.md) - [Chile power transmitter Transelec rebuilds storm-collapsed Romeral-Incahuasi line by Aug. 15 deadline](https://longbridge.com/en/news/295688326.md) - [13:34 ETSPOC Energy Earns Fifth Inc. 5000 Recognition, Reflecting More Than a Decade of Growth and Innovation](https://longbridge.com/en/news/295565128.md) - [Scatec reaches commercial operations for Obelisk 1.1 GW Egypt solar-plus-storage project phase 2](https://longbridge.com/en/news/295620383.md)