A research report indicates that total exports of major power equipment from January to February 2026 increased by 34% year-on-year, with growth observed across all regions. Asia, Africa, and Europe demonstrated particularly strong expansion. Transformer exports reached approximately $1.6 billion, a 39% year-on-year increase, while electricity meter exports grew by 3%. The report maintains a positive outlook on the global power investment cycle, noting that Chinese companies are increasing their overseas presence, which is expected to enhance profit flexibility.
Historical data on U.S. grid operations reveals that power outages caused by extreme weather are not isolated incidents. There is a trend toward winter outages becoming more common, which may pressure the United States to accelerate investment in grid infrastructure. Key points from the analysis are as follows:
Investment by the two major grid operators has accelerated at the beginning of the year, with ultra-high voltage (UHV) project construction pacing significantly faster. 1) UHV: Several key AC and DC projects have entered the approval and construction phase, though equipment tenders have not yet been issued. A new peak in UHV equipment bidding is anticipated, with core companies likely to benefit substantially. Multiple projects are in the feasibility study stage, supporting sustained high activity during the 15th Five-Year Plan period. 2) Main Grid: Two rounds of bidding for State Grid transmission and transformation equipment have already been conducted in 2026, with the second batch showing a significant year-on-year increase in volume, indicating stable growth in main grid demand for the year. 3) Electricity Meters: Two bidding rounds for electricity meters have been held in 2026, totaling nearly 49.2 million units, close to the full-year 2025 level. Specialized bidding has seen price recovery, suggesting a potential scenario of both volume and price increases for meter tenders this year.
The strong growth in power equipment exports continues. Global power investment is entering a major cycle, and Chinese firms are expanding their overseas footprint, which is poised to release profit potential.
An analysis of widespread outages during U.S. winter storms, examining the causes and underlying medium-to-long-term power supply and demand challenges, may offer insights for China's power planning and new power system construction during the 15th Five-Year Plan period.
Recommended companies include: 1) Power equipment exporters: Sieyuan Electric Co.,Ltd. (002028.SZ), Huaming Power Equipment Co.,Ltd. (002270.SZ), Hainan Jinpan Smart Technology Co.,Ltd. (688676.SH), Guangdong Mingyang Electric Co.,Ltd. (301291.SZ), Ningbo Sanxing Medical Electric Co.,Ltd. (601567.SH), WASION HOLDINGS (03393.HK); 2) UHV and main grid players: Beijing Sifang Automation Co.,Ltd. (601126.SH), Henan Pinggao Electric Co.,Ltd. (600312.SH), Nari Technology Co.,Ltd. (600406.SH), Xj Electric Co.,Ltd. (000400.SZ), China Xd Electric Co.,Ltd. (601179.SH); 3) Power market participants: Longshine Technology Group Co.,Ltd. (300682.SZ), State Power Rixin Technology Co.,Ltd. (301162.SZ).
Risk factors include slower-than-expected new energy capacity installation, lower-than-expected grid investment, and impacts from macro-policy environmental changes.
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