--- title: "Grid Invisible Champion Goes for Hong Kong IPO: Siyuan Electric, No Longer Wants to Be a \"Supporting Role\"" description: "Photovoltaics, lithium batteries, and new energy vehicles have taken turns being the darlings of capital, but the underlying infrastructure that truly carries the energy revolution often remains out o" type: "topic" locale: "en" url: "https://longbridge.com/en/topics/38720266.md" published_at: "2026-02-13T08:13:53.000Z" author: "[港股研究社](https://longbridge.com/en/profiles/3199113)" --- # Grid Invisible Champion Goes for Hong Kong IPO: Siyuan Electric, No Longer Wants to Be a "Supporting Role" Photovoltaics, lithium batteries, and new energy vehicles have taken turns being darlings of capital, but the underlying infrastructure that truly carries the energy revolution often remains out of the spotlight. As wind and solar installations continue to break records, and as energy storage becomes the next trillion-dollar track, a more "hardcore" question is emerging—where does the electricity flow? How can it be delivered more stably and efficiently to every city, factory, and data center? The answer lies not in power generation, but in the power grid. Over the past few years, the restructuring of the global energy system has essentially been a reconstruction project of the transmission and distribution system: upgrading aging grids, integrating new energy sources, expanding ultra-high voltage lines, using storage for peak shaving, and building power infrastructure in overseas emerging markets... A long, wide-moat industrial belt is quietly emerging. Recently, Siyuan Electric, a company with over thirty years of experience in power equipment, submitted its application to the Hong Kong Stock Exchange. This long-term low-profile private manufacturer lacks the high-growth narrative of PV companies or the storytelling appeal of energy storage firms, yet it has delivered a report card full of "certainty": revenue grew by leaps and bounds over three years, with a year-on-year growth rate of nearly 33% in the first three quarters of 2025; net profit growth approached 50%; gross margin steadily rose to 32%. What it has stepped into is not a fleeting trend, but the most fundamental "backbone" of the power system. And behind the Hong Kong IPO, what kind of capitalization path does Siyuan truly want to tell? **The Grid is Not a Trend, It's the Foundation: How is Siyuan Evolving from an "Equipment Supplier" to a System Player?** If judged solely by hype, transmission and distribution equipment is hardly a star track in the capital market. It lacks the sentiment premium of new energy vehicles and the technological iteration stories of photovoltaics. It's more like a "slow business"—bidding-based, asset-heavy, with long delivery cycles and high customer concentration. But it is precisely this "slowness" that constitutes the rare stability of this industry. Data shows that in 2024, the global market size for transmission, distribution, and control equipment reached 863.6 billion yuan and is expected to grow to 1,475.5 billion yuan by 2029, with a compound growth rate exceeding 11%. The Chinese market has also steadily expanded, growing from 225.1 billion yuan in 2020 to 311.3 billion yuan in 2024. This is not explosive growth, but a clear upward trajectory. In other words, this is an infrastructure track driven by the rigid demand for electrification, not dependent on sentiment or subsidies. What matters is comprehensive capability—whether the product portfolio is complete, whether delivery capabilities are stable, and whether it can deeply integrate with the grid system. The companies that survive are often not "hit champions" but "systemic players." This is precisely where Siyuan Electric is special. Unlike many equipment manufacturers still stuck in a single product category, Siyuan has quietly completed a full-chain layout from primary and secondary equipment to energy storage, power electronics, and EPC engineering services. Switches, transformers, protection automation, energy storage systems, and engineering contracting are linked together, forming a combination of "products + solutions + services." This may seem like just an extension of the business line, but it actually determines the company's profit structure. When a company only sells individual products, it can only compete on price in tenders; when it can provide system solutions, pricing power begins to shift to the supply side. The change in gross margin is the most direct reflection—Siyuan's gross margin rose from 29% to 32%, net profit margin rose to 16.4%, and profit growth consistently outpaced revenue growth. This is not due to a coincidental cost reduction but the evolution of the business model. More importantly, Siyuan is gaining a "first-tier" position within the grid system. The prospectus discloses that the company has consistently maintained a leading share in core customers' power transmission and transformation equipment tenders, meaning it has transformed from a "supplementary supplier" to a "core alternative." In an industry with complex relationship chains and extremely high entry barriers, this position is more valuable than short-term growth rates. Of course, the power equipment business has never been easy. Accounts receivable and inventory have risen with scale, operating cash flow is under pressure, continuous capacity expansion brings capital expenditure pressure, and the top five customers still contribute over 40% of revenue—this is a typical "heavy asset + long payment cycle" business. But precisely because of this, it is more like infrastructure than cyclical speculation. From this perspective, Siyuan's first growth curve is essentially a victory of "slow variables": using thirty years of accumulation to secure a stable and substantial position in the industry. **Energy Storage and Global Expansion: The Real Capital Story is Not in China** If grid equipment constitutes Siyuan's basic foundation, what truly determines its valuation elasticity are two other, more imaginative curves—energy storage and globalization. Energy storage has been one of the fastest-growing segments in the power industry chain in recent years. Data shows that in 2024, global new lithium battery energy storage installations reached 187.2 GWh, with a compound growth rate exceeding 100% over the past four years; the market size for transmission and distribution-side energy storage soared from 5.1 billion yuan in 2020 to 100.2 billion yuan, almost an exponential expansion. This indicates a trend: energy storage is no longer just a supporting facility for power generation but is becoming a "standard asset" on the grid side. For Siyuan, this is not a cross-border venture but a natural extension. Grid companies are its long-term, deeply cultivated customer base, and energy storage is precisely the core adjustment tool in grid upgrades. Unlike startups entering energy storage from scratch, Siyuan possesses more mature system integration capabilities and customer access. Its hybrid supercapacitor and lithium battery technology solution essentially responds to the grid's real needs for frequency regulation and peak shaving across different time scales. Currently, energy storage revenue still accounts for less than 6%, but precisely because the base is still small, it has ample room for growth. Once scale is achieved, this curve's contribution to profits will far exceed that of traditional equipment. The other, more imaginative curve is global expansion. In China, grid procurement is highly centralized and price-transparent, making companies more like "standardized suppliers"; overseas, especially in emerging markets, power infrastructure often progresses through engineering, procurement, and construction (EPC) models, allowing equipment suppliers to upgrade into "system integrators" with significantly higher profit margins and pricing power. This is also why more and more power companies are shifting from "selling products" to "doing engineering." Siyuan has already moved ahead in this regard. The company's business covers over 100 countries and regions worldwide. Overseas revenue doubled in two years, accounting for over 30% in the first three quarters of 2025 and becoming the fastest-growing source of performance. This is not just market expansion but an upgrade of the profit model. In China, it is more like a manufacturing enterprise; overseas, it is gradually becoming a solutions provider. The valuation logic for these two identities is completely different. From a capital market perspective, this may be the real reason Siyuan chose the Hong Kong Stock Exchange. Compared to the domestic market, Hong Kong is more familiar with the valuation methods of global equipment companies and provides easier access to foreign currency financing and M&A ammunition. The benchmark is no longer just domestic electrical companies but international system integrators like ABB and Siemens Energy. This is a "transformational listing." If the past thirty years proved Siyuan can stand firm, then the question it truly needs to answer in the next thirty years is: can it become a Chinese player in global energy infrastructure? The story of new energy always revolves around efficiency and innovation, but what truly supports this revolution is the underlying infrastructure that doesn't look sexy. The power grid is the hardest layer among them. As the market gradually shifts from "creating trends" back to "seeking certainty," companies like Siyuan, firmly on the infrastructure track, might be the most durable long-termism examples. Its IPO is less about financing and more of an advance bet on its future territory. Trends will rotate, but electricity must flow. And whoever masters the path of the current holds the most tangible chips of the next era. ### Related Stocks - [002028.CN - SIEYUAN](https://longbridge.com/en/quote/002028.CN.md) --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.