September 28, 2020

Electricity price increases, power stocks will not rise and fall

Following April 28, Datang Power and Huadian Power successively stated that they will raise the price of on-grid. Yesterday, power companies such as Changjiang Power and Huadian Energy also announced that due to the implementation of the coal-electricity linkage policy, the company's on-grid tariff will be raised. However, stimulated by this good news, the stock prices of many power companies have not risen, but have fallen in different degrees.

As China's largest hydropower company, Yangtze Power is not affected by rising fuel prices, but can benefit from the coal-electricity linkage policy, but Yangtze Power fell 0.09 yuan yesterday, a decrease of 1.07%; Huaneng Power fell 0.11 yuan, a decrease of 1.50 %; Datang Power also fell 0.15 yuan, a drop of 2.479%.

Wang Xuebing of Great Wall Securities believes that the news of coal-electricity linkages has been reported at the end of last year, and it is no longer fresh. Moreover, the increase in the price of on-grid electricity is not very large, and the impact on the performance of power companies is limited because of the current The stock price is already higher than its stock index, so the stock price decline is not abnormal.