Analysis of the Strong Performance of Dazhong Public Utilities (600635): Defensive Attributes and Valuation Repair Logic

This analysis is based on tushare_strong_pool [0] data, and Dazhong Public Utilities (600635) has recently entered the strong stock pool. As a core public utility enterprise in Shanghai, its main business covers tap water supply, sewage treatment, etc. [1]. The 2025 performance is expected to grow steadily with prominent defensive attributes and large valuation repair space, and the institutional consensus rating is overweight [0].

As an important public utility enterprise in Shanghai, Dazhong Public Utilities (600635) has stable cash flow and a high dividend yield [0]. The 2025 performance growth expectation is clear, benefiting from economic recovery and operational efficiency improvement [0].

• Defensive Attributes
  : Amid economic uncertainty, public utility stocks become a safe haven for funds [0].
• Valuation Repair
  : Traditional public utility valuations are at historical lows, with room for repair [0].
• Policy Support
  : National steady growth policies and infrastructure investment are beneficial to industry leaders [0].
• Interest Rate Decline
  : Interest rate cuts reduce financing costs, which is beneficial to high-debt public utility enterprises [2].
• Industry Trends
  : The public utility sector has performed well overall, and industry leaders such as Huaneng Power (0902.HK) have also benefited from similar trends [3].

Most institutions give an overweight or buy rating, with the core logic being value regression and high dividends [0]. There are differences in target prices, but it is generally believed that there is sufficient upside potential [0].

• Market Style Switch
  : If risk preference shifts to value stocks, low-valued public utility stocks will benefit significantly [0].
• Policy Synergy
  : The advancement of the dual-carbon goal provides policy tilt for clean energy businesses (such as natural gas) [0].
• Defensive Allocation
  : In an uncertain market environment, the company becomes an ideal defensive allocation target [0].

1. Performance Exceeding Expectations
   : If performance continues to deliver or exceed expectations, it will directly boost the stock price [0].
2. Policy Benefits
   : Investment and subsidies in the water and environmental protection sectors reduce costs or expand business [0].
3. Valuation Repair
   : The value regression trend of low-valued sectors [0].

• Performance Below Expectations
  : If growth fails to meet market expectations, it may suppress stock price performance [0].
• Interest Rate Rise
  : If the central bank raises interest rates, it will increase financing costs, which is unfavorable to high-debt enterprises [2].

As a defensive public utility stock, Dazhong Public Utilities (600635) has value regression potential in 2025. Investors should pay attention to quarterly financial reports, dividend policies, and capital expenditure plans, and make decisions based on their own risk preferences [0].