CICC: Domestic UHV construction accelerates, overseas business deliveries expected to speed up in Q4

Stock News11-11

CICC has released a research report stating that its review of the power equipment sector in the third quarter shows strong momentum in ultra-high-voltage (UHV) construction, with overseas business deliveries expected to accelerate in the fourth quarter.

Third-quarter revenue was solid while profitability came under some pressure. In terms of year-on-year revenue growth by segment, primary equipment rose 19.7%, secondary equipment rose 12.5%, grid digitalization rose 1.3%, and smart power distribution and consumption fell 6.3%.

The report notes that domestic UHV construction is accelerating and the overseas expansion boom continues. In the first nine months, national grid project investment completed rose 5% year on year; this year's UHV approvals covered "three direct current and four alternating current" projects, and State Grid's power distribution and consumption tendering improved. Overseas grid demand remains robust, with China's transformer export value rising 25% year on year in the first nine months, and the bank is bullish on Chinese power equipment companies accelerating their global footprint.

The bank maintained its earnings forecasts, ratings, and target prices for all covered companies unchanged.

Recommended domestic grid names include Henan Pinggao Electric Co.,Ltd. (600312.SH), Nari Technology Co.,Ltd. (600406.SH), China Xd Electric Co.,Ltd. (601179.SH), and Xj Electric Co.,Ltd. (000400.SZ), among others.

Overseas expansion names include Sieyuan Electric Co.,Ltd. (002028.SZ), Huaming Power Equipment Co.,Ltd. (002270.SZ), WASION HOLDINGS (03393), Hainan Jinpan Smart Technology Co.,Ltd. (688676.SH), Eaglerise Electric&Electronic(China)Co.,Ltd. (002922.SZ), and Guangdong Mingyang Electric Co.,Ltd. (301291.SZ), among others.

AIDC and grid intelligence names include Beijing Sifang Automation Co.,Ltd. (601126.SH), DONGFANG ELEC (01072), Shanghai Liangxin Electrical Co.,Ltd. (002706.SZ), State Power Rixin Technology Co.,Ltd. (301162.SZ), and Willfar Information Technology Co.,Ltd. (688100.SH), among others.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment