Guangfa Securities: Guangdong spot electricity prices surge, focus on thermal power first quarter results exceeding expectations.

Guangfa Securities released a research report stating that in April, the average spot electricity price in Guangdong reached 0.524 yuan/kWh, with the highest exceeding 1 yuan/kWh, far exceeding the annual long-term contracted electricity price. Since April, the national average temperature has been higher than the same period last year, and it is expected that most parts of the country will have temperatures 1-2C higher than normal this summer. This is likely to drive an increase in electricity consumption. The China Electricity Council predicts that the total electricity consumption of the entire society will increase by 5%-6% in 2026, and the demand for the electricity industry will remain stable. National power companies have been releasing their first-quarter reports, with initial expectations of a decline in electricity prices at the beginning of the year. However, some companies have announced that the actual decrease in electricity prices is better than expected, and it is anticipated that the performance of power companies will surpass expectations.