The approved Energy Plan VIII opened a new chapter for the electricity sector. Companies in the field of elect...
The approved Energy Plan VIII opened a new chapter for the electricity sector. Companies in the field of electrical infrastructure construction and installation will benefit from a relatively high workload, especially in the electricity and gas and renewable energy groups.
Investors need to observe the pace of market corrections and indicators to have a suitable trading strategy. Photo credit: SONG ANH
Planning Opportunities
For the group of coal-fired power plants, energy planning VIII has a negative impact on this group, but in the short and medium term it is still an important source of electricity, especially with the return of El Niño, alternative energy sources have not been developed.
In addition to renewables, Master Plan VIII also has major electrification projects. As a result, electricity and gas sources will spearhead Vietnam's development plan for the 2021-2030 period with a compound growth of 26%, accounting for 27% of total power capacity.
VNDIRECT Securities said companies in the field of electrical infrastructure construction and installation will most clearly benefit from the relatively high workload of the Power Plan VIII plan, especially in the power and gas and renewable energy groups.
Renewables are the group that is showing the most positivity so far, as this group has come out of the correction and entered a period of euphoria of signals in the direction of buying. In such a state, investors holding this group of stocks may continue to hold to take advantage of the ongoing short-term momentum or consider looking for short-term opportunities
We can see that gas-fired thermal power, coal-fired thermal power, and renewables are still in the most positive trend, while hydropower is not really good at the moment. In terms of cash flow, coal-fired power plants and renewables are two groups that attract cash flow attention.
What are the expected stocks?
In the coal-fired group, the PPC is a technically positive action that can provide a good short-term negotiating position. BCG and GEG are two shares of the renewable energy group. What these three stocks have in common is that they are all in a positive uptrend and have held steady from November 2022 to today. Although the market has moved sideways since the beginning of 2023 so far
In terms of market liquidity, cash flows have shown a strong improvement since April 2023 and have supported the stock's bullish direction. Investors need to observe the pace of market corrections and indicators to have a suitable trading strategy.
Via Bao Nhan dan