CITIC Securities: Recommend leading integrated enterprises in hydropower, nuclear power, and coal power with high-quality underlying assets.

CITIC Securities released a research report stating that the national electricity consumption growth rate in June marginally decreased to 3.7%. The primary reason is the weak electricity demand from urban and rural residents as well as from sub-sectors like chemical production, while high-tech industries such as electrical and computer sectors continue to show robust growth. It is recommended to focus on high-quality leading companies in hydropower, nuclear power, and integrated coal power; H-shares of conventional thermal power and green power that offer attractive dividends with safe valuations; and new scenarios and models like virtual power plants and microgrids that benefit from the increasing integration of digitization and new power systems.