Understanding the Market | HPI rose over 8%, with a 88.5% year-on-year increase in net profit attributable to the parent company in the third quarter, as coal and electricity profits continue to improve

HPI rose over 8%, as of the time of writing, up 8.46%, reported at HKD 6.54, with a trading volume of HKD 294 million. In terms of news, Huaneng Power International released its performance for the first three quarters, reporting an operating income of CNY 172.975 billion, a year-on-year decrease of 6.19%; net profit attributable to shareholders was CNY 14.841 billion, a year-on-year increase of 42.52%. Looking specifically at the third quarter, the company achieved an operating income of CNY 60.943 billion, a year-on-year decrease of 7.1%; net profit attributable to shareholders was CNY 5.579 billion, a year-on-year increase of 88.5%. Guosheng Securities believes that the growth in performance is mainly due to lower fuel costs and the expansion of new energy. As a leading player in the national power sector, the company has a prominent advantage, with continuous improvement in coal power profits and broad growth potential in new energy transformation. China Merchants Securities stated that under the expectation of a cold winter, the company's thermal power is expected to fully play its role in ensuring supply, with Q4 electricity volume expected to recover; the annual coal price is expected to remain at a low level, and the implementation of a two-part electricity price will stabilize profits, with coal power performance likely to continue high growth; in Q3, the company added a new grid-connected power generation capacity of 2.3081 million kilowatts, which is expected to further contribute to performance growth