LESHAN ELECTRIC POWER CO. Surges on Strategic Expansion and Sector‑Wide Momentum

LESHAN ELECTRIC POWER CO. (SH600644) has posted a sharp rally in early trading on July 22, 2026, driven by a combination of an ambitious new development plan and a broader upturn in China’s electric‑utility sector. The company’s share price climbed to 9.64 CNY by the close, up from a 52‑week low of 7.51 CNY the week before. With a market capitalization of 5.59 billion CNY, LESHAN remains a mid‑cap player in Shanghai’s utilities landscape, yet its price‑earnings ratio of 239.6 indicates that investors are willing to pay a premium for the company’s growth prospects.

3.27 Billion CNY Project in Shenyang

In a landmark announcement dated July 20, 2026, LESHAN disclosed plans to acquire and build a “Comprehensive Operations Management Center” in Shenyang, Liaoning Province. The project is projected to cost 3.27 billion CNY, a significant investment that underscores LESHAN’s strategy to expand its asset base and operational footprint. Management noted that the company’s existing office space is already strained by rapid growth, and the new center will consolidate administrative functions and support the launch of upcoming projects.

The announcement was well received by the market, with LESHAN’s shares surging to the upper trading limit (涨停) shortly after the news. The rally was part of a broader pattern of gains across the power‑sector, where the Electric Utilities ETF (512140) advanced 1.27 % and several peers, including 华银电力 and 乐山电力, posted double‑digit gains.

Power‑Sector Momentum

The rally in LESHAN’s stock is set against a backdrop of robust performance in China’s power market. On July 20, the Electric Power ETF recorded a 4.84 % gain, buoyed by strong earnings outlooks for hydropower and the growing demand for electricity driven by digital and industrial expansion. Analysts at 华创证券 highlighted that the rising consumption of data center electricity—reported by the Guangdong Power Grid as 59.74 billion kWh for the first half of 2026, an increase of 21.15 %—is a key tailwind for utilities. This trend, coupled with policy support for “electric‑computing coordination” (电算协同), is positioning power companies for sustained earnings growth.

Meanwhile, the Green Power ETF (鹏华 159067) and the Public Utilities ETF (鹏华 560190) each posted gains of over 1.5 %, reinforcing the narrative that clean‑energy and utility stocks are attractive in the current cycle. The overall market sentiment remained positive, with the Shanghai Composite Index edging up 0.85 % and the Shenzhen Component Index falling modestly by 0.71 %.

Investor Reaction and Technical Outlook

LESHAN’s price performance aligns with a pattern of rapid upward movement that has seen the stock hit the upper limit price on multiple occasions. In the weeks leading up to July 22, LESHAN’s shares had already recorded double‑digit gains, and the latest news has likely propelled the stock to a new high. Given the company’s high price‑earnings ratio, investors appear to be pricing in significant upside potential tied to the company’s expansion plans and the broader sector rally.

From a technical perspective, the share price has approached its 52‑week high of 14.81 CNY set on August 7, 2025, suggesting that the stock may encounter resistance near that level in the near term. However, the ongoing development of the Shenyang center and the continued demand for electricity in China’s industrial and digital sectors could support further upside.

Conclusion

LESHAN ELECTRIC POWER CO. is poised to capitalize on both strategic growth initiatives and favorable macro‑environmental factors. The company’s announcement of a sizable investment in Shenyang, combined with a sector‑wide rebound in electric‑utility stocks, has generated significant enthusiasm among investors. As the company expands its operational base and benefits from rising electricity consumption, LESHAN’s valuation may continue to reflect the market’s optimistic outlook for the utility sector in China.