--- title: "China Galaxy Securities: How to seize investment opportunities in the Tibet Yaxia Hydropower Project?" type: "News" locale: "en" url: "https://longbridge.com/en/news/249346977.md" description: "China Galaxy Securities released a research report indicating that the hydropower project in the lower reaches of the Yarlung Tsangpo River commenced construction on July 19, with a total investment of approximately 1.2 trillion yuan. The firm believes that the demand for cement and civil explosives in the Tibet region will increase in the long term and recommends paying attention to central state-owned enterprises involved in the surveying, design, and construction of hydropower projects, as well as investment opportunities in the cement and civil explosives industries in the Tibetan region" datetime: "2025-07-21T07:01:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/249346977.md) - [en](https://longbridge.com/en/news/249346977.md) - [zh-HK](https://longbridge.com/zh-HK/news/249346977.md) --- # China Galaxy Securities: How to seize investment opportunities in the Tibet Yaxia Hydropower Project? According to the Zhitong Finance APP, China Galaxy Securities released a research report stating that on July 19, the groundbreaking ceremony for the Yarlung Tsangpo River downstream hydropower project was held; the founding conference of China Yajiang Group took place in Beijing. The project mainly adopts the development method of straightening bends and tunnel water diversion, constructing five cascade power stations, with a total investment of approximately 1.2 trillion yuan. The bank believes that the demand for cement in the Tibet region is expected to be enhanced in the long term, and the demand for civil explosives in the region is also expected to increase. Two major investment lines are highlighted: Line One recommends central state-owned enterprises responsible for the survey, design, and construction of hydropower projects; Line Two recommends cement and civil explosives in the Tibetan region. ## The main viewpoints of China Galaxy Securities are as follows: **The Yarlung Tsangpo River downstream hydropower project officially starts, with a total investment of approximately 1.2 trillion yuan** According to Xinhua News, the groundbreaking ceremony for the Yarlung Tsangpo River downstream hydropower project was held on the morning of July 19 in Nyingchi City, Tibet Autonomous Region. Premier Li Qiang announced the official commencement of the project. The Yarlung Tsangpo River downstream hydropower project mainly adopts the development method of straightening bends and tunnel water diversion, constructing five cascade power stations, with a total investment of approximately 1.2 trillion yuan. The power generated by the project will primarily be transmitted out, while also considering local self-use demand in Tibet. On the same day, the founding conference of China Yajiang Group was held in Beijing, establishing Yajiang Group Co., Ltd. to ensure the smooth construction and operation of the Yarlung Tsangpo hydropower project. **Central state-owned enterprises as the main bodies for survey, design, and construction of hydropower projects will benefit first** China Power Construction Corporation undertakes over 80% of the river planning and survey design tasks for large and medium-sized hydropower stations in China, over 65% of the construction tasks for large and medium-sized hydropower stations, 90% of the survey design tasks for pumped storage power stations, and 78% of the construction tasks, as well as over 60% of the planning design and construction tasks for wind and solar power projects, holding over 50% of the global market for large and medium-sized water conservancy and hydropower construction. China Energy Engineering Corporation has completed over 90% of domestic thermal power design business and undertaken over 70% of domestic thermal power project construction, with a market share exceeding 30% in the hydropower project construction sector (over 50% for large hydropower). In addition, central enterprises such as China Railway, China Railway Construction, China Communications Construction, and China State Construction are globally positioned and are expected to benefit in the future in the field of hydropower station infrastructure construction. **The demand for cement in the Tibet region is expected to be enhanced in the long term** According to China Cement Network, the cement production in Tibet Autonomous Region is projected to be 13.0982 million tons in 2024. The cement market in Tibet is dominated by six companies, mainly including Tibet Tianlu, Huaxin Cement, Qilian Mountain, and Conch Cement. In 2024, Tibet Tianlu's cement production is expected to be 3.9369 million tons, with sales of 3.9297 million tons and inventory of 119,500 tons. Tibet Tianlu's cement production accounts for approximately 30.06% of the total production in the Tibet region. Huaxin Cement has two factories in Tibet, located in Shannan and Shigatse. In January 2025, Tibet Tianlu's holding subsidiary Tibet Gaozheng Building Materials (51% stake) jointly established "Tibet Lang County Gaozheng Building Materials Co., Ltd." with Tibet Zangjian Cement Co., Ltd. (25% stake), Linzhi City Investment (13% stake), and Lang County City Investment (11% stake) to actively layout the Linzhi market. Referring to the construction period of the Three Gorges Hydropower Station, the demand for cement from enterprises in the Tibet region is expected to benefit in the long term **Demand for civil explosives in Tibet is expected to increase** According to the bank's calculations, the amount of explosives used in the Three Gorges Project exceeds 52,000 tons. The installed capacity of major water conservancy projects in Tibet reaches 60 million kilowatts, approximately 2.68 times that of the Three Gorges Hydropower Project. Assuming the same amount of explosives is used per unit of installed capacity, the amount of explosives used in the downstream hydropower project of the Yarlung Tsangpo River in Tibet is about 139,300 tons. Gaozheng Minbao, Yipuli, and Guangdong Hongda have a significant market share in the civil explosives market in Tibet. In 2024, Gaozheng Minbao's revenue in Tibet is expected to be 1.29 billion yuan, accounting for 76.28%. In 2024, Yipuli's revenue in the southwest region is expected to be 1.344 billion yuan, accounting for 15.73%. Yipuli undertakes nearly 70% of the blasting work for the Three Gorges Project. Guangdong Hongda's sales revenue from civil explosive materials in 2024 is expected to be 2.309 billion yuan, accounting for 16.91%; revenue in the southwest region is expected to be 1.14 billion yuan, accounting for 8.35%. **Risk Warning:** Risks of construction progress of the downstream hydropower project of the Yarlung Tsangpo River not meeting expectations; risks of accounts receivable recovery not meeting expectations, etc ### Related Stocks - [601668.CN](https://longbridge.com/en/quote/601668.CN.md) - [002827.CN](https://longbridge.com/en/quote/002827.CN.md) - [600326.CN](https://longbridge.com/en/quote/600326.CN.md) - [600585.CN](https://longbridge.com/en/quote/600585.CN.md) - [00914.HK](https://longbridge.com/en/quote/00914.HK.md) - [601800.CN](https://longbridge.com/en/quote/601800.CN.md) - [01800.HK](https://longbridge.com/en/quote/01800.HK.md) ## Related News & Research - [CCCC new contracts fall 8.89% in H1 2026 to RMB 902.95 billion](https://longbridge.com/en/news/295928053.md) - [Anhui Conch Cement files HKEX next-day disclosure return on share buyback at RMB 17.4](https://longbridge.com/en/news/296197934.md) - [09:25 ETThe Brothers That Just Do Gutters Encourages Homeowners to Prepare for the Great American Leaf Drop](https://longbridge.com/en/news/296235825.md) - [BitMart shutdown gets messy as staff speak out over unpaid wages](https://longbridge.com/en/news/296089549.md) - [Algeria signs contracts to develop integrated phosphate project](https://longbridge.com/en/news/295748204.md)