Guangfa Securities: It is expected that the hydropower industry will maintain profit growth for multiple quarters, focusing on the process of asset securitization.

Guangfa Securities research report pointed out that energy storage at high levels guarantees electricity volume, and attention should be paid to installation commissioning and asset securitization. In the second half of 2025, abundant water from the Pearl River and Yangtze River will drive electricity growth. China Longyuan Power Group has already released its performance report, achieving a net profit attributable to shareholders of 34.2 billion yuan in 2025, with 6 billion yuan in the fourth quarter. It is expected that the overall performance of hydropower will also be good. The high energy storage at the end of 2025 will guarantee electricity volume during the low water period in the first half of 2026. With a low base during the flood season, hydropower is expected to maintain profit growth for multiple quarters. The peak period for the commissioning of hydropower is approaching, with multiple power stations in the Dadu River basin expected to be put into operation successively. In addition, various groups still have hydropower assets not securitized, so the securitization process should also be monitored.