JPMorgan reiterate positive view on China’s power industry amid heatwaves

 

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Southern China has seen power load hit new record highs, with southwestern China’s Sichuan province reportedly introducing power restrictions again, and taking into account the low coal prices, the recent heatwave is expected to benefit power utility stocks, said JPMorgan in a research note. 

The bank reiterated a positive view on the electric power industry, expecting a strong first-half earnings, it said.

Four mainland power companies have forecast a significant rebound in first-half earnings, meaning their Q2 earnings were strong, it said. 

The industry’s top picks are China Resources Power and China Power International Development and in addition, Huaneng Guodian is expected to see first-half earnings exceed 4 billion yuan, it said.