Nanshan Power pivots to energy services as heat lifts demand
Heatwave and record power loads lift the whole power sector A July heatwave pushed electricity use to record highs, and power stocks like Shennan Electric A jumped to their daily limit even as the broad market fell. Strong demand supports short-term revenue for power producers, though it does not fix the company's underlying cost problems.
This is the immediate demand-side force that first pushed the stock up this period.
Company warns of heavy pressure from costly gas and old plants The company itself said 2026 still brings big operating pressure: expensive fuel, outdated gas-fired units and tough competition in the power market. Higher summer demand helps sales but does not remove these cost problems, so the stock's gains rest on shaky ground.
It is the main counterweight — the company's own warning that profits remain under strain.
New energy and storage bets take shape with partners Nanshan Power formed a joint venture with Shandong Hi-Speed Shenzhen, holding 51%, and its subsidiary committed 26 million yuan to an energy storage fund. These moves expand it beyond gas power into new energy, giving investors a growth story, though both are early-stage and carry execution risk.
These capital moves are the clearest new growth narrative behind the stock.
Interim profit turns positive as energy services surge First-half net profit was 19.83 million yuan versus a 21.74 million yuan loss a year earlier, with revenue up 21.29%. The integrated energy services segment grew 153% and now makes up 34% of revenue, showing the business mix is shifting toward higher-growth services.
The profit turnaround is the strongest fundamental support for the stock's price.