Power Structure Surges! Huabao Fund Power ETF (159146) Gains Over 1% Against Market Downturn, Guangdong Electric Power A Posts Two Consecutive Limit-Up Days! Four Major Investment Values of the Sector Emerge!

On the morning of the 19th, electricity stocks defied the market trend and strengthened, with the green energy concept performing strongly. Guangdong Electric Power A hit two consecutive limit-ups, Guang’an Aizhong surged to the limit, and several stocks like Lixin New Energy and Jinkai New Energy rose over 6%!

Regarding popular ETFs, the all-electric power ETF Huabao (159146) rose 1% intraday against the trend, with net purchases exceeding 27 million yuan on the previous day.

According to GF Securities, the electric power sector currently has four major highlights:

Highlight 1: From top-level design to Token exports, electricity has become a core asset in the AI era. The 2026 government work report first proposed “computing and electricity collaboration,” elevating the development of electricity and computing power to a national-level new infrastructure strategy. As of March 9, global Token consumption exceeded 15T in a single week, with explosive growth in computing demand. Meanwhile, driven by cost advantages and continuous improvements in model capabilities, domestic models’ Token usage is expected to keep rising, further boosting global AI computing demand.

Highlight 2: The logic of rising electricity prices is strengthening, leading to a reassessment of utility assets. After the issuance of the “Notice on Improving Capacity Electricity Prices on the Generation Side” in 2026, the capacity electricity price mechanisms for coal, gas, pumped storage, and independent new energy storage on the grid side have been further improved. Additionally, ongoing conflicts like Russia-Ukraine and tensions in the Middle East continue to disrupt global energy supply, with upstream coal and natural gas prices expected to rise and transmit. Under the deepening market-oriented electricity mechanism, energy prices will gradually pass through to electricity prices, pushing the price center upward and further enhancing the profitability of electricity assets.

Highlight 3: Fits the “HALO” asset paradigm, combining extreme defense and transformation growth dividends. In the A-share market, electricity assets perfectly align with the “heavy assets, low淘汰” investment narrative, with shareholder equity backed by substantial physical credit and strong resistance to volatility. Due to their heavy capital investment and high capital utilization, these assets tend to have higher long-term ROE than the overall A-share index and offer significant dividend advantages. This high ROE and high dividend yield make them suitable for long-term allocation, capable of navigating cycles with both offensive and defensive features.

Highlight 4: Valuation dislocation is evident, with electricity assets offering both offense and defense. From a valuation perspective, the current PE and PB ratios of the electricity index are below the historical average compared to the power grid equipment index. Additionally, the overall dividend yield of the electricity index is significantly higher than that of the power grid equipment theme index, reflecting higher asset value for money. Furthermore, the allocation ratio of the utility sector in active equity funds is at a historic low, indicating potential for low allocation correction.

Seize AI energy opportunities by focusing on the Huabao (159146) electricity ETF, which tracks an index focused on the utility sector, covering thermal, hydro, wind, nuclear, and photovoltaic power. The sector combines dividends and growth attributes, with leading power stocks concentrated and expected to benefit from AI computing power growth and electricity reform policies. Easily grasp the development opportunities in the electricity industry. Note: The off-market connection fund (code: 026949) will be launched on March 23!

ETF-related fee explanation: When investors subscribe or redeem fund shares, the agency handling the subscription or redemption may charge a commission of up to 0.5%. Intraday trading fees are based on the actual charges by securities firms; no sales service fee is charged.

Risk reminder: Huabao Electric Power ETF passively tracks the CSI All Share Electric Power & Utility Index, with a base date of December 31, 2004, and published on July 15, 2013. The index components are adjusted periodically according to the index rules. Past backtested performance does not predict future results. The index components shown are for display only; individual stock descriptions are not investment advice and do not represent holdings or trading trends of any fund managed by the manager. The risk level of this fund is assessed as R3—medium risk, suitable for active investors (C3) and above. Suitability opinions are subject to the sales institution. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any form of statements) is for reference only. Investors are responsible for their own investment decisions. The opinions, analysis, and forecasts in this article do not constitute investment advice and do not hold the fund manager liable for any direct or indirect losses caused by using this content. Fund investments carry risks; past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Please invest cautiously.

MACD Golden Cross signals formed, these stocks are on a good upward trend!