A Surge in Power and Diamond‑Heat‑Sink Stocks Fuels a Mid‑Morning Rally

Power‑Sector Momentum

On the afternoon of June 23, 2026, the Chinese A‑share market witnessed a localized rally in the power‑generation sector. Several coal‑fired thermal operators—including Dalian Power (600719.SH) and Hengsheng Energy (605580.SH)—both attained their daily limit up, signaling robust investor confidence. The rally extended to peers such as Hangzhou Power, Fujian Power, and Jiangsu Power, all of which posted significant gains. The surge was anchored in the latest statistics from the National Energy Administration: national electricity consumption in May reached 867.1 billion kWh, a year‑on‑year increase of 6.9 %. From January to May, cumulative consumption climbed 42.018 billion kWh, up 5.7 %. The growth was broadly distributed across all sectors, with the primary, secondary, and tertiary sectors recording increases of 5.6 %, 5.1 %, and 5.8 % respectively. This uptick in demand bolstered the prospects for thermal power producers, as they continue to supply electricity to state grid terminals and industrial customers such as paper mills, textile printing, and food processing plants.

Hengsheng Energy’s Dual Role

Hengsheng Energy, a company listed on the Shanghai Stock Exchange, operates a diversified portfolio that extends beyond coal‑fired generation. Its core business encompasses:

  • Coal‑fired thermal power for industrial steam and grid electricity supply.
  • Cogeneration and biomass thermal projects.
  • Photovoltaic generation and coal trading.
  • Manufacturing equipment and environmental protection technologies.
  • A burgeoning cogeneration‑diamond division that produces lab‑grown diamonds, heat sinks, and diamond‑cutting tools.

The firm’s market capitalization stands at roughly 7.4 billion CNY, and its price‑earnings ratio of 44.4 reflects the premium investors place on its growth prospects. The 2026‑06‑21 closing price of 26.43 CNY underscores the stock’s current valuation relative to its earnings potential.

The Diamond‑Heat‑Sink Boom

In the days preceding the power‑sector rally, a separate yet interconnected trend gained momentum: the ascent of the cultured‑diamond sector. Intel’s CEO, Chen Liyu, announced a strategic investment in a domestic lab‑grown diamond wafer company, spotlighting the material’s superior thermal conductivity as a key advantage for high‑performance chip packaging. The announcement catalysed a wave of limit‑up moves across a cohort of companies, including Hengsheng Energy.

Key data points from the 22nd of June illustrate the strength of this sub‑sector:

  • Huanghe Rotors (黄河旋风), Qiangliang (力量钻石), Sifangda (四方达), and Hengsheng Energy all hit limit‑up.
  • Huifeng Diamond (惠丰钻石) surged 23–24 % before hitting a 30‑percentage‑point limit‑up.
  • Zhejiang Longyou Hengsheng Heating—the company’s former name—has been leveraging its manufacturing base to expand into diamond cutting tools, aligning with the demand from AI data centers for advanced cooling solutions.

The underlying driver is the escalating thermal load of next‑generation GPUs and AI accelerators. For instance, NVIDIA’s forthcoming Vera Rubin architecture is projected to consume up to 2,300 W, with localized heat flux exceeding 1,000 W/cm². Diamond’s extraordinary thermal conductivity (five times that of copper and fifteen times that of silicon) and its low coefficient of thermal expansion (~1.1 ppm/K) make it an ideal heat‑sink material. Analysts project that by 2030, the AI‑chip heat‑sink market could reach 48–90 billion CNY, with diamond products commanding a premium valuation.

Market Sentiment and Broader Implications

The convergence of two high‑growth narratives—renewed domestic electricity demand and the advent of diamond‑based thermal management—has energized a swath of A‑share constituents. While power‑sector stocks benefit from a tangible rise in consumption, diamond‑related firms enjoy speculative enthusiasm fueled by the promise of a material revolution in chip cooling.

For investors, the dual rally illustrates how macro‑economic fundamentals (energy demand) and technological breakthroughs (diamond heat sinks) can intertwine to create a composite narrative that drives equity valuation. Hengsheng Energy, positioned at the intersection of these trends, exemplifies a company whose diversified operations allow it to capture upside across multiple fronts.

In summary, the midday trading session of June 23, 2026, showcased a power‑sector surge backed by robust consumption growth, while a separate wave of limit‑up moves in the cultured‑diamond space highlighted the increasing importance of advanced thermal solutions for AI and high‑performance computing. Hengsheng Energy’s performance in both arenas underscores its strategic alignment with these emerging currents, positioning it as a notable case study in the evolving landscape of industrial and technological investment opportunities.