Longyuan Power August power generation +5.56%

Longyuan Power August power generation +5.56%

In a significant development, Longyuan Power, a leading power generation company in China, reported a substantial increase in its power generation in August. According to the latest financial reports, Longyuan Power's power generation surged by 5.56% compared to the previous month, trading at HKD 7.42 [1].

This upward trend is part of a broader pattern observed across the power sector in Hong Kong. As of the report date, Longyuan Power's stock rose by 6%, trading at HKD 7.42. Similarly, China Power (02380) gained 3.65%, trading at HKD 3.41, Huaneng International (00902) increased by 2.79%, trading at HKD 5.89, and China Resources Power (00836) rose by 2.51%, trading at HKD 18.78 [1].

The surge in power generation can be attributed to several factors. The National Energy Administration announced that the total electricity consumption in July reached 1.02 trillion kilowatt-hours, marking the first time monthly electricity consumption surpassed one trillion kilowatt-hours [1]. Additionally, the decline in fuel prices, particularly thermal coal, has positively impacted the profitability of thermal power companies. Companies like Huaneng International and Huadian International have seen year-on-year growth in net profit attributable to shareholders, benefiting from reduced fuel costs [1].

The performance of Chinese power stocks in the first half of the year generally met the expectations set by financial analysts. Guosheng Securities reported that the 2025 interim report for the power industry showed a decrease in revenue but an increase in profit for thermal power, stable growth for hydropower, and pressure on green energy, with the overall performance of the power sector meeting expectations [1].

Looking ahead, the power sector is expected to see further improvements. Current electricity prices are anticipated to bottom out and rebound, while electricity demand is expected to recover, and fuel costs are projected to continue declining. These trends will likely highlight regional disparities and present investment opportunities [1].

References:
[1] https://news.futunn.com/en/post/61719016/hong-kong-stock-market-update-power-stocks-rose-across-the