State Grid plans to invest 4 trillion yuan during the "16th Five-Year Plan" period to construct a new power system, with ultra-high voltage (UHV) and intelligentization as key focuses, potentially benefiting leading companies in the industrial chain.
Recently, State Grid announced on its official website that during the "16th Five-Year Plan" period, its fixed asset investment is projected to reach 4 trillion yuan, a 40% increase compared to the "14th Five-Year Plan" investment. This aims to drive high-quality development across the new power system's industrial and supply chains through expanded effective investment. Following the announcement, the DZH UHV Index rose for two consecutive days on the 16th and 19th, achieving a cumulative gain of 6.93%. Several constituent stocks, including Diankeyuan, Xigaoyuan, Hanlan Gufen, and Sieyuan Electric Co.,Ltd., saw increases exceeding 20%. Institutions believe that domestic power grid investment is expected to maintain high growth during the "16th Five-Year Plan" period, with sectors such as UHV equipment and power grid intelligentization upgrades likely to benefit.
The UHV sector has received positive news. State Grid's recent announcement indicated that during the "16th Five-Year Plan" period, the installed capacity of wind and solar new energy within its service area is expected to increase by an average of 200 million kilowatts annually. The goal is to raise the proportion of non-fossil energy consumption to 25% and electricity's share in final energy consumption to 35%. Efforts will focus on enhancing system regulation capability, optimizing the layout of pumped storage sites, and supporting the large-scale development of new energy storage. The plan also involves serving the construction of zero-carbon factories and parks, meeting the access needs for 35 million charging facilities, and improving the electrification level of end-use energy consumption.
It is understood that during the "16th Five-Year Plan" period, State Grid will initially establish a new grid platform featuring coordinated primary, distribution, and micro-grids, further consolidating the energy transmission network for "West-to-East Power Transmission" and "North-to-South Power Supply". The company will accelerate the construction of UHV DC transmission channels for outward delivery, aiming to increase inter-regional and inter-provincial transmission capacity by over 30% compared to the end of the "14th Five-Year Plan" period. This will support the development and delivery of clean energy bases in the country's desert, Gobi, and barren areas ("Sha-Ge-Huang") and large hydropower bases in the southwest. The flexible mutual support capability between regions via back-to-back connections will be significantly enhanced. The construction of distribution networks in urban, rural, and remote areas will be accelerated, exploring end-use supply-guarantee and off-grid microgrid models. Digital-intelligent infrastructure will be strengthened through the implementation of an "AI+" special initiative, reinforcing the grid's digital empowerment.
State Grid's decision aligns with the requirements outlined in the "Guiding Opinions on Promoting the High-Quality Development of Power Grids" issued by the National Development and Reform Commission and the National Energy Administration at the end of 2025, which serves as the top-level document for grid development over the next decade. The Guiding Opinions propose that by 2030, a new grid platform will be initially established, with the backbone grid and distribution network as the essential foundation and smart microgrids as a beneficial supplement. The scale of "West-to-East Power Transmission" will exceed 420 million kilowatts, with new inter-provincial power mutual support capacity of around 40 million kilowatts. This will support a new energy generation share of approximately 30%, enable the integration of distributed new energy capacity reaching 900 million kilowatts, and support over 40 million charging infrastructure units. By 2035, the development of the backbone grid, distribution network, and smart microgrids will be fully coordinated, safety governance mechanisms penetrating all grid levels will be more perfected, and the intelligentization and digitalization level throughout the entire lifecycle of grid facilities will be significantly enhanced.
While promoting the steady increase in installed capacity of wind and solar new energy, China has successively introduced multiple policies in recent years to address the issue of new energy consumption, consistently coordinating power delivery and local consumption capabilities. In September and November 2025, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Improving the Pricing Mechanism to Promote Local Consumption of New Energy Generation" and the "Guiding Opinions on Promoting New Energy Consumption and Regulation," respectively. These policies provide direction for resolving issues related to new energy consumption and supply-demand mismatches, explicitly stating the need to enhance the grid's capacity to accept new energy and promote the coordinated development of smart microgrids and the main grid according to local conditions.
CICC believes that accelerating the substitution of non-fossil energy will be a key task for achieving the carbon peak goal during the "16th Five-Year Plan" period, focusing on the growth of new energy installation, supporting flexible resources, and power grid infrastructure construction. It expects overall power grid investment to maintain high growth during the "16th Five-Year Plan," with key directions including the distribution network and UHV. Guosen Securities also believes that domestic power grid investment is expected to maintain high growth during the "16th Five-Year Plan" period, with sectors such as UHV equipment and power grid intelligentization upgrades likely to benefit.
Sieyuan Electric Co.,Ltd. was the first to release its 2025 performance forecast. In fact, even before this recent announcement, the DZH UHV Index had already begun an upward trend on November 24, 2025. By January 19, 2026, the index had achieved a cumulative gain of 26.92%. During the same period, UHV concept stocks such as Hualing Xianlan, Zhongchao Konggu, China Xidian, Dongcai Keji, and Tongguang Xianlan performed exceptionally well, with gains of 137.7%, 91.4%, 80.4%, 65.9%, and 65.9%, respectively. Observing the market performance since the start of 2026 (up to January 19), China Xidian, Diankeyuan, Baobian Electric, and Tebian Electric led the gains, rising 57.8%, 49.7%, 48.7%, and 37.3%, respectively.
Among UHV concept stocks, Sieyuan Electric Co.,Ltd., while not the top performer during the same period, still rose 50.6% since November 24, 2025, ranking 7th among the 35 constituent stocks in the Wind UHV index for that period. On the evening of January 15, 2026, Sieyuan Electric Co.,Ltd. released its "2025 Annual Performance Forecast" announcement. It was the first among the 35 UHV concept stocks to disclose a 2025 performance forecast, and also the first in the power grid equipment industry to do so. The company announced that during the reporting period, it achieved operating revenue of 21.205 billion yuan, a year-on-year increase of 37.18%; net profit attributable to shareholders of the listed company was 3.163 billion yuan, a year-on-year increase of 54.35%; net cash flow from operating activities was 2.228 billion yuan, a decrease of 235 million yuan compared to the previous year, down 9.54%.
According to Wind data, Sieyuan Electric Co.,Ltd. has maintained year-on-year growth in both revenue and net profit attributable to parents since the end of 2022. In the first three quarters of 2025, the company achieved revenue of 13.827 billion yuan, a year-on-year increase of 32.86%, and net profit attributable to parents of 2.191 billion yuan, a year-on-year increase of 46.94%. Combining this with the 2025 performance forecast data, it can be seen that Sieyuan Electric Co.,Ltd.'s revenue and net profit attributable to parents for the fourth quarter of 2025 reached 7.378 billion yuan and 972 million yuan, respectively, representing year-on-year growth of 46% and 74%, and quarter-on-quarter growth of 38% and 8.1%, setting a new historical high for single-quarter operations.
Sieyuan Electric Co.,Ltd. is one of the few companies in the power grid equipment industry with R&D, manufacturing, and solution capabilities for primary power equipment (traditional mechanical power equipment), secondary equipment (control power equipment), and power electronic equipment. While vigorously developing the domestic market, the company is also actively expanding overseas markets and is one of the enterprises with the deepest global footprint in the power grid equipment sector. Since 2022, the growth rate of its overseas revenue has been significantly faster than that of its domestic revenue. According to its financial reports, the proportion of overseas revenue was 16.88% in mid-2022, and by mid-2025, it had reached 33.68%.
Currently, institutions are optimistic about Sieyuan Electric Co.,Ltd. On January 16, 2026, several institutions including Goldman Sachs, Springs Capital, China Investment Corporation, and Morgan Stanley Investment Management conducted research on the company. Regarding the institution's focus on "Saudi company Al Sharhan Energy signing a joint venture agreement with Sieyuan Electric Co.,Ltd. to plan building a factory in Saudi Arabia," Sieyuan Electric Co.,Ltd. stated, "The joint venture factory in Saudi Arabia is a response to customer localization needs and a decision made after prudent evaluation. Overseas factory construction also brings new challenges, which we will actively address. The company maintains a prudent and open attitude towards overseas factory construction, aiming to provide products and services that better meet customer needs."
Regarding the question "With the completion and operation of the transformer plant, can the capacity expansion cover the orders for 2026?", Sieyuan Electric Co.,Ltd. stated, "The newly built transformer workshops and purchased equipment are still being installed, debugged, and undergoing trial production, and will gradually enter mass production. Currently, it appears that deliveries can generally meet customer requirements."
Trina Solar Co.,Ltd., Hangzhou Cable Co.,Ltd., and Changshu Fengfan Power Equipment Co.,Ltd. have released their 2025 performance forecasts. Unlike Sieyuan Electric Co.,Ltd., which released a performance forecast, UHV sector companies Trina Solar Co.,Ltd., Hangzhou Cable Co.,Ltd., and Changshu Fengfan Power Equipment Co.,Ltd. issued 2025 performance pre-announcements, and all three companies reported losses.
Trina Solar Co.,Ltd. is a designated solution provider for the world's first UHV photovoltaic projects and previously supplied its TrinaPro intelligent matching solution and 600MW P-type and N-type high-efficiency PV modules for the Qinghai-Henan ±800 kV UHV DC project. According to its "2025 Annual Performance Pre-announcement," it expects the net profit attributable to owners of the parent company for 2025 to be between -7.5 billion yuan and -6.5 billion yuan; it expects the net profit attributable to owners of the parent company after deducting non-recurring gains and losses for 2025 to be between -7.9 billion yuan and -6.9 billion yuan.
Regarding the reasons for the loss, Trina Solar Co.,Ltd. stated, "During the reporting period, the photovoltaic industry still faced a phase of supply-demand imbalance, with operating rates low across the industrial chain and market competition intensifying further, compounded by the ongoing impact of international trade protection policies. PV product prices were generally under pressure in the first half compared to the same period last year (2024). Although PV product prices gradually increased in the second half driven by industry efforts against 'internal competition,' the company's module business profitability for the full year declined compared to the same period last year due to the rapid rise in costs of key raw materials like silicon materials and silver paste, leading to an operating loss for 2025. Additionally, based on the principle of prudence, the company conducted impairment tests on long-term assets showing signs of impairment and, after careful assessment, will provision for asset impairment in accordance with accounting standards, which also affected performance."
However, alongside the pre-announced loss, Trina Solar Co.,Ltd. indicated signs of improvement in its fundamentals: "Leveraging mature global system solution capabilities and an efficient delivery service system, the company's energy storage business achieved rapid growth in overseas shipments, significantly increasing its market share." Simultaneously, the company "possesses diversified technology reserves including crystalline silicon cells (HJT, etc.), perovskite tandem cells, and III-V gallium arsenide multi-junction cells, and will actively introduce innovative technologies into the commercial aerospace field in the future, creating new application scenarios and adding new profit growth points for the company."
It is worth noting that the loss-making Trina Solar Co.,Ltd. also possesses the currently popular "space-based solar" concept. In its investor relations activity record disclosed on January 15, the company pointed out, "As an industry leader possessing the National Key Laboratory of Photovoltaic Science and Technology, and in promoting commercial applications, the company, based on our leading achievements, closely cooperates with domestic aerospace research institutes and enterprises, as well as overseas leading aerospace institutions, accumulating substantial practical experience in space-based solar power." It believes that with the continuous advancement of reusable rocket technology, space-based solar power is expected to become a trillion-yuan market in the future.
Hangzhou Cable Co.,Ltd. is a major supplier of EHV power cables and UHV conductors to State Grid and China Southern Power Grid, and has been involved in the construction of UHV project lines for State Grid's West-East Power Transmission and smart grid initiatives since 2010. According to its "2025 Annual Performance Pre-loss Announcement," it expects the net profit attributable to shareholders of the listed company for 2025 to be approximately -300 million yuan; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses is also expected to be approximately -300 million yuan.
Regarding the reason for the first loss, Hangzhou Cable Co.,Ltd. stated: "The company made a provision for fixed asset impairment amounting to 264.486 million yuan for its wholly-owned secondary subsidiary, Hangzhou Yongte Information Technology Co., Ltd." Additionally, "during the reporting period, affected by factors such as rising prices of the company's main product raw materials, the gross profit margin declined year-on-year, leading to a decrease in net profit."
Changshu Fengfan Power Equipment Co.,Ltd. is one of the main manufacturers of power transmission towers in China, primarily engaged in businesses such as angle steel towers, steel pole tubular towers, and substation structure supports. According to its "2025 Annual Performance Pre-loss Announcement," it expects the net profit attributable to owners of the parent company for 2025 to be between -380 million yuan and -320 million yuan. Compared with the same period last year, this represents a decrease of 411.2886 million yuan to 471.2886 million yuan, meaning the loss increased by 450.54% to 516.26% year-on-year. Changshu Fengfan Power Equipment Co.,Ltd. explained: "The company's photovoltaic business faces pressures from overcapacity and price declines, and it is expected to make a goodwill impairment provision of approximately 338.98 million yuan for the full year."
Currently, among the 35 companies in the Wind UHV sector, apart from Sieyuan Electric Co.,Ltd., Trina Solar Co.,Ltd., Hangzhou Cable Co.,Ltd., and Changshu Fengfan Power Equipment Co.,Ltd., the remaining 31 companies have not disclosed their 2025 performance. However, reviewing the performance of the 19 UHV companies with a total market capitalization exceeding 10 billion yuan in the first three quarters of 2025, it can be seen that apart from Trina Solar Co.,Ltd. and Xuji Electric, which saw revenue decline by 20.87% and 1.38% year-on-year respectively, the remaining 17 companies all achieved revenue growth. Similarly, in terms of net profit attributable to parents, apart from Trina Solar Co.,Ltd., Dongfang Cable, and Hanlan Gufen, which saw declines of 396.22%, 1.95%, and 18.55% year-on-year respectively, the remaining 16 companies also achieved year-on-year growth in net profit attributable to parents. This suggests that against the backdrop of significantly accelerated domestic power grid construction in 2025 and continued growth in overseas orders, these companies with market caps over 10 billion yuan that achieved performance growth in the first three quarters of 2025 are highly likely to show overall growth in their full-year 2025 results.
In fact, institutional interest in UHV concept stocks remains high. According to Wind data, since December 2025 alone, 10 companies have received investor research, involving institutional research for 9 companies. Besides the aforementioned Sieyuan Electric Co.,Ltd., these include Guangzhou Baiyun Electric Equipment Co.,Ltd., Beijing Sifang Automation Co.,Ltd., Jinpan Tech, Changshu Fengfan Power Equipment Co.,Ltd., Trina Solar Co.,Ltd., Zhiguang Electric, Energy Saving Environment, and Hengtong Optic-Electric. Among them, Sieyuan Electric Co.,Ltd., Guangzhou Baiyun Electric Equipment Co.,Ltd., and Beijing Sifang Automation Co.,Ltd. have seen their stock prices rise over 30% since the start of 2026.
Regarding Beijing Sifang Automation Co.,Ltd., which has risen 30.2% since the start of 2026, multiple institutions including China Asset Management, Renbridge Asset Management, and JY Fund Management conducted research at the end of 2025, focusing on performance and Solid State Transformer (SST) aspects. On the question "What is the new progress in Solid State Transformer (SST)?", Beijing Sifang Automation Co.,Ltd. stated: "The company holds a significant leading advantage in SST technology, products, solutions, and project operation experience. Currently, the company has made certain progress in related aspects."
For Guangzhou Baiyun Electric Equipment Co.,Ltd., which has gained 32% year-to-date, institutions such as E Fund Management, Bosera Asset Management, and Bopu Asset Management recently researched the company, focusing on various aspects including products, profitability, global expansion, and strategic layout. Regarding its "layout and goals in the data center field," the company stated: "The company collaborated with the three major telecom operators and financial institutions over a decade ago, has accumulated multiple implemented data center projects, and has supplied products for projects like China Unicom's Shaoguan project; it provides transformers, medium-voltage switchgear, low-voltage switchgear, busways, and distribution boxes for computing power centers, accumulating rich experience; currently, the company has completed the R&D of intelligent small busways and integrated power modules for data centers, and its 750V DC power distribution solution has been implemented in three scenarios: industrial parks, smart buildings, and subway stations. The company already possesses technology reserves like 800V HVDC and will continue to strengthen its data center power distribution product series and solutions, committed to launching safer and more reliable power supply guarantee products and solutions."
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