Power sector multiple stocks hit daily limit, one stock releases announcement after 7 consecutive daily limits

【Source: Global Times】

【Global Times Financial Report】On March 24, power stocks performed actively, with a total of 14 stocks hitting the daily limit-up by the close. Among them, Huadian Liaoning Power achieved seven consecutive limit-ups. According to data from Eastmoney Choice, the power sector index rose by 5.31% that day.

In individual stocks, Huadian Liaoning Power has recently recorded seven consecutive limit-ups, with its total market value returning to the 10 billion yuan mark. On March 25, Huadian Liaoning Power issued an announcement about severe abnormal fluctuations in its stock trading. From March 11 to March 24, the company’s stock price increased by a total of 95.36% over 10 trading days. The short-term rise was significant and has deviated sharply from the Shanghai Composite Index and the industry index for power, heat production, and supply. Since March 20, the turnover rates over the past three days were 26.74%, 11.43%, and 16.07%, indicating high trading risk and the potential for sharp short-term declines. Investors face considerable trading risks.

The announcement shows that the latest rolling price-to-earnings ratio (P/E) for the power, heat production, and supply industry to which Huadian Liaoning Power belongs is 17.96 times, while the company’s own latest rolling P/E is 174.89 times. The latest price-to-book ratio (P/B) for the industry is 1.58 times, and the company’s latest P/B is 8.26 times. Both the company’s latest rolling P/E and P/B are higher than industry averages, indicating higher trading risks.

Additionally, 16 power sector stocks achieved record high trading volumes for the year. Jinkai New Energy, Energy Saving Wind Power, and GCL New Energy Technology led in trading volume. In terms of turnover rate, Kyushu Group, Jowei New Energy, and Jinkai New Energy all exceeded 30%.

Notably, data from Eastmoney shows that green power concept stocks traded a total of 5.477 billion yuan throughout the day, with a daily turnover rate exceeding 19%. Since March, these stocks have gained over 48% in total. Margin trading data indicates that Energy Saving Wind Power had a net financing purchase of 1.3078 million yuan on March 23; the financing balance is 781 million yuan, accounting for 2.95% of the circulating market value.

Institutions believe that driven by the rapid development of AIDC and the expanding demand for power grid infrastructure, the demand for power equipment such as transformers remains strong. They remain optimistic about leading companies that are strategically positioned and have potential to break into the North American market in the future. (Wen Hui)