According to the CITIC Securities Research Report, 2026H1 continues to suppress the industry due to factors such as weak overall industry fundamentals, rising coal prices on the revenue side, and overcapacity at the industry level; in terms of power, we expect that only hydropower reports with abundant water supply and stable electricity prices will perform excellently; in an environment with weak fundamentals, high certainty and valuation are the keys to screening targets. It is recommended that leading hydropower, coal and electricity be integrated to evaluate H shares that fully release industry risks. Electricity and nuclear power.

According to the CITIC Securities Research Report, 2026H1 continues to suppress the industry due to factors such as weak overall industry fundamentals, rising coal prices on the revenue side, and overcapacity at the industry level; in terms of power, we expect that only hydropower reports with abundant water supply and stable electricity prices will perform excellently; in an environment with weak fundamentals, high certainty and valuation are the keys to screening targets. It is recommended that leading hydropower, coal and electricity be integrated to evaluate H shares that fully release industry risks. Electricity and nuclear power.