Guangfa Securities: The performance of coal-fired power companies' stock prices varies, and it is expected that the increase in electricity prices will accelerate the commercialization of public utilities in 2026.

Guangfa Securities research report pointed out that with the increase in capacity electricity prices in 2026, the trend towards public utility may accelerate. Looking back, the performance of thermal power companies' stock prices in 2025 showed significant differentiation, with companies in the northern region generally performing better in terms of business performance. Currently, the long-term electricity prices for 2026 in various provinces are gradually approaching the lower limit, and there is limited room for future reductions. In addition, the increase in capacity electricity prices for coal-fired power in 2026 may bring about an increase in electricity tariffs by nearly 2 cents. At the same time, thermal power companies can also increase their electricity income through market-oriented trading methods, and the stability of profitability can still be expected to improve. In terms of governance, market value management of thermal power companies is a key driver, on the one hand, it is for the repair of financial statements; on the other hand, the improvement in free cash flow of thermal power companies is prominent, and there is ample room for an increase in dividend payout ratio, indicating that the moment of "public utility" for thermal power may have arrived.