Galaxy Securities in China: Electricity consumption growth rate improves month-on-month, while new installed photovoltaic capacity decreases significantly

The Wisdom Finance app has learned that China Galaxy Securities has issued a research report stating that the rise in coal prices, coupled with high temperatures, has reversed the pessimistic expectations for electricity prices. The latest monthly long-term electricity prices in Jiangsu and Guangdong have both exceeded the annual long-term contract prices. The National Climate Center predicts that May will enter an El Nio state, and a moderate to strong El Nio event is expected to form in the summer and autumn seasons, with a focus on repairing electricity consumption on a low base. The mechanism electricity prices in Liaoning and Guangxi have been stabilized, and attention is now on the follow-up situation in other provinces. With the addition of a high volume of new units entering intensive operation, the sector is expected to see both performance and valuation improvements. The short-term fundamentals of new energy are relatively weak, and attention is on the catalytic effect of policies and project implementation on the market.