Power structure surges! Huabao Fund Power ETF (159146) rises over 1% against the market, Guangdong Electric Power A hits two consecutive limit-ups! Four major investment values of the sector emerge!

Early trading on the 19th, power stocks defied the market trend with strong performance. The concept of green energy showed robust gains, with Guangdong Electric Power A hitting two consecutive limit-ups, Guang’an Aizhong reaching the daily limit, and several stocks like Li New Energy and Jinkai New Energy rising over 6%!

Regarding popular ETFs, the all-electric power ETF Huabao (159146), which focuses on the power utility sector, rose 1% intraday despite the market trend, with net capital inflows exceeding 27 million yuan on the previous day.

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

Highlight 1: From top-level design to Token globalization, power has become a core asset in the AI era. In 2026, the government’s work report first proposed “computing and electricity collaboration,” elevating the development of power and computing power to a national-level new infrastructure strategy. As of March 9, global Token consumption exceeded 15T per 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 needs.

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 for Power Generation” in 2026, capacity electricity prices for coal, gas, pumped storage, and independent new energy storage on the grid have been further refined. Additionally, geopolitical conflicts and ongoing tensions in the Middle East continue to disrupt global energy supplies, with upstream coal and natural gas prices expected to rise and transmit upward. As market-oriented mechanisms deepen, energy prices will gradually pass through to electricity prices, pushing the price center higher and further enhancing the profitability of power assets.

Highlight 3: Fits the “HALO” asset paradigm, combining extreme defense with growth dividends. In the A-share market, power assets perfectly align with the “heavy assets, low淘汰” investment narrative, with shareholder equity backed by substantial physical assets, making them highly resilient 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 dividend profile allow for long-term allocation without excessive timing concerns, combining cyclical offensive potential with steady dividend income, capable of crossing cycles.

Highlight 4: Valuation valleys are emerging, with power assets offering both offense and defense. From a valuation perspective, the current PE and PB ratios of the power index are below the historical averages relative to the power grid equipment index. Meanwhile, the overall dividend yield of the power index is significantly higher than that of the power grid equipment theme, indicating better asset value. Additionally, the allocation ratio of the utility sector in active equity funds is at a historic low, presenting a clear opportunity for low-weight recovery.

Seize the AI energy opportunity by focusing on the Huabao Power ETF (159146), which tracks an index centered on power utilities, covering thermal, hydro, wind, nuclear, and photovoltaic power. The sector offers both dividends and growth potential, with leading power companies concentrated and expected to benefit from AI computing growth and power reform policies. This ETF provides a convenient way to tap into the development opportunities of the power industry. Note: The off-market connect fund (code: 026949) will be actively issued from March 23!

ETF-related fee information: When investors subscribe or redeem fund units, 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 levied.

Risk reminder: Huabao Power ETF passively tracks the CSI All Share Power Utility Index, with a base date of December 31, 2004, and a publication date of 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 reflect holdings or trading activity 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’s judgment. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any other statements) is for reference only; investors are responsible for their own investment decisions. The opinions, analyses, and forecasts in this article do not constitute investment advice and do not hold the author or the fund manager liable for any direct or indirect losses resulting from the use of 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.