1 minute, 20% limit up! Four major positive catalysts suddenly hit! The entire sector collectively explodes!

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Electric power surges early in the session!

This morning (March 18), the A-share electric power sector performed actively. Jiwei New Energy opened with a 20% limit-up after one minute of trading. China Power LiaoNeng hit three consecutive limit-ups, while Guangdong Electric Power A, ShaoNeng Shares, and Yabo Shares also followed with limit-ups. New Zhonggang, China Electric Power Energy, Jiangsu New Energy, and Min Dong Electric Power performed well.

An institution stated that the electric power sector combines high dividends with growth potential. Currently, there are four major positive factors: First, from top-level design to Token globalization, electricity is becoming a core asset in the AI era; second, rising electricity prices reinforce the logic of price increases, leading to a valuation re-rating of utility assets; third, aligning with the “HALO” asset paradigm, offering extreme defense and transformation growth dividends; fourth, value gaps are emerging, with electric power assets offering both offense and defense.

Electric power re-explodes

Today, some electric power stocks have become rare consensus targets in the market. Jiwei New Energy opened with a limit-up in seconds, and Yabo Shares quickly hit the limit-up as well. Both are typical photovoltaic concept stocks, belonging to the green electricity sector.

Western Securities pointed out that the proportion of new energy power generation continues to rise, but the fundamental mechanism of power dispatch and operation has not changed. Grid regulation and safety margins are decreasing, and absorption conflicts are becoming more serious. The rapid growth of new energy installed capacity has led to localized absorption issues. Computing power, as a controllable load factor, is expected to improve the “self-absorption” level of new energy. Policies like “East Data West Computation” support “Western electricity for Western use,” guiding industry shift westward. With AI advancements, smart grid technology is expected to help solve grid connection issues, forming an industrial closed loop, and strongly supporting the development of a technology-driven nation.

Thermal power also performed well. Shen Nan Electric, Guangdong Electric Power A, and China Power LiaoNeng all hit the limit-up, while China Electric Power Energy, Hui Hengyun, Huayin Electric Power, and Jiantou Energy performed strongly. Notably, Guangdong Electric Power A and China Power LiaoNeng opened with straight limit-ups, and Shen Nan Electric also hit the limit-up in seconds.

With the US and Israel attacking Iran, the Strait of Hormuz shipping is nearly paralyzed, causing extreme volatility in global oil prices. On March 16, South Korea’s ruling Democratic Party announced it would lift restrictions on coal power capacity and increase nuclear plant utilization to 80%. The Democratic Party’s Middle East crisis economic response team stated these measures aim to stabilize energy supply and prices, as tensions in the Strait of Hormuz hinder oil and natural gas shipments to South Korea.

Four major highlights

According to GF Securities, the electric power sector has four key highlights.

Highlight 1: From top-level design to Token globalization, electricity is becoming a core asset in the AI era. The 2026 government work report first proposed “computing and electricity collaboration,” elevating the development of power and computing power as a national-level new infrastructure strategy. As of March 9, global Token consumption exceeded 15T per week, with explosive growth in computing demand. Meanwhile, driven by cost advantages and improved model capabilities, domestic model Token usage is expected to continue rising, further boosting global AI computing demand.

Highlight 2: The logic of rising electricity prices is strengthening, leading to a valuation re-rating of utility assets. After the issuance of the “Notice on Improving Capacity Electricity Price Mechanisms for Power Generation” in 2026, capacity price mechanisms for coal, gas, pumped storage, and independent new energy storage on the grid were further refined. Ongoing conflicts like Russia-Ukraine and Middle East tensions continue to disrupt global energy supplies, with upstream coal and natural gas prices expected to rise and transmit through to electricity prices. As market-oriented mechanisms deepen, energy prices will gradually pass through to electricity prices, pushing the price center upward and further enhancing profitability of power assets.

Highlight 3: Aligning with the “HALO” asset paradigm, offering both extreme defense and growth dividends. In the A-share market, power assets fit perfectly with the “heavy assets, low淘汰” investment narrative, with shareholder equity backed by substantial physical assets and strong resilience to volatility. Due to their heavy capital investment and high capital utilization, these assets tend to have higher long-term ROE than the overall A-share index, with significant dividend yields. This high ROE and dividend characteristic means they do not require excessive timing, combining cyclical offensive potential with steady dividends, suitable for long-term allocation across cycles.

Highlight 4: Value gaps are emerging, with power assets offering both offense and defense. From a valuation perspective, current electric power indices have PE and PB ratios below their historical averages relative to power grid equipment indices. Additionally, the overall dividend yield of the power index is significantly higher than that of the power grid equipment theme, indicating better asset value for money. Furthermore, the allocation of public utility sectors in active equity funds is at historically low levels, presenting a clear low-allocation recovery opportunity.

Editor: Tactical Heng

Layout: Wang Lulu

Proofreading: Yang Lilin