--- title: "CICC: The performance of the power equipment sector in the first half of the year meets expectations, with strong domestic grid investment" type: "News" locale: "en" url: "https://longbridge.com/en/news/256069248.md" description: "CICC released a research report stating that the performance of the power equipment sector in the first half of 2025 is in line with expectations, with revenue increasing by 12.1% year-on-year and net profit excluding non-recurring items growing by 9.3%. The growth rate of primary equipment is leading, and it is expected that the compound annual growth rate of grid investment will reach 10% from 2024 to 2026. From January to July 2025, national grid engineering investment reached 331.5 billion yuan, an increase of 12.5% year-on-year, setting a new historical high. Looking ahead, the demand for ultra-high voltage and main distribution network construction is strong, and grid investment is expected to continue to grow" datetime: "2025-09-05T06:37:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/256069248.md) - [en](https://longbridge.com/en/news/256069248.md) - [zh-HK](https://longbridge.com/zh-HK/news/256069248.md) generator: "portal-rs" --- # CICC: The performance of the power equipment sector in the first half of the year meets expectations, with strong domestic grid investment According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that the revenue of the power equipment sector in the first half of 2025 increased by 12.1% year-on-year, and the net profit excluding non-recurring items increased by 9.3% year-on-year. By segment, the growth rate of primary equipment leads, with profits from primary equipment (+27.2%) > secondary equipment (+7.7%) > grid digitalization (+5.4%) > smart distribution and utilization (-9.6%). From January to July 2025, the total investment in national grid projects reached 331.5 billion yuan, an increase of 12.5% year-on-year, with the fixed asset investment scale of the State Grid reaching a historical high for the same period. Looking ahead to the next two years, considering the strong demand for domestic ultra-high voltage and main distribution network construction, it is expected that the compound annual growth rate (CAGR) of grid investment will remain around 10%. ## CICC's main viewpoints are as follows: **The performance of the power equipment sector in 1H25 meets expectations** The power equipment sector maintains steady growth: in 1H25, revenue increased by 12.1% year-on-year, and net profit excluding non-recurring items increased by 9.3% year-on-year. By segment, the growth rate of primary equipment leads, with profits from primary equipment (+27.2%) > secondary equipment (+7.7%) > grid digitalization (+5.4%) > smart distribution and utilization (-9.6%). **Strong domestic grid investment, expected CAGR of about 10% from 2024 to 2026** From January to July 2025, the total investment in national grid projects reached 331.5 billion yuan, an increase of 12.5% year-on-year, with the fixed asset investment scale of the State Grid reaching a historical high for the same period. Looking ahead to the next two years, considering the strong demand for domestic ultra-high voltage and main distribution network construction, it is expected that the compound annual growth rate (CAGR) of grid investment will remain around 10%. By segment: **Primary Equipment:** Driven by both domestic and overseas markets, performance growth is impressive. In the first half of the year, benefiting from domestic ultra-high voltage products and overseas high-profit products, business structure optimization has driven profits upward. We remain optimistic about the accelerated approval of ultra-high voltage projects in the second half of the year and the positive contribution of high overseas demand to the performance of various companies. **Secondary Equipment:** Since the beginning of this year, the bidding amount for main network protection equipment has significantly increased. We are optimistic about the steady upward trend of various companies' network business, the accelerated layout in external markets such as renewable energy, energy storage, and data centers, and the expansion of overseas incremental markets through technological competitiveness. **Smart Distribution and Utilization:** Individual stock performance shows differentiation, with domestic meter deliveries under pressure. In the future, we will mainly focus on the marginal changes brought by the advancement of new meter standards; meter exports are steadily increasing, and overseas layout remains the main theme, with various companies breaking into new markets and accelerating the export of distribution products. **Grid Digitalization:** Benefiting from the warming of State Grid tenders and the accelerated pace of power market construction, various companies have abundant orders on hand, and operational quality is improving. We are optimistic about the potential for accelerated delivery in the second half of the year to help release performance, while various companies are increasing their layout in AI-related fields, which is expected to empower long-term growth. **Regarding targets** Recommendations: **1) Ultra-high voltage:** Pinggao Electric (600312.SH), NARI-TECH (600406.SH), China Xidian (601179.SH), XJEC (000400.SZ); **2) Power equipment going overseas:** Siyuan Electric (002028.SZ), HUAMING (002270.SZ), Willfar (03393), Samsung Medical (601567.SH), Jinpan Technology (688676.SH), Mingyang Electric (301291.SZ), Haixing Electric (603556.SH), Huatong Cable (605196.SH), etc.; **3) Distribution network and grid intelligence:** Sifang Co., Ltd. (601126.SH), Guoneng Rixin (301162.SZ), Willfar (688100.SH), Longxin Group (300682.SZ), State Grid Information Communication (600131.SH). **Risk Factors** Grid investment is less than expected, risks of changes in international trade policies, intensified industry competition ### Related Stocks - [688100.CN](https://longbridge.com/en/quote/688100.CN.md) - [002270.CN](https://longbridge.com/en/quote/002270.CN.md) - [000400.CN](https://longbridge.com/en/quote/000400.CN.md) - [600406.CN](https://longbridge.com/en/quote/600406.CN.md) - [600312.CN](https://longbridge.com/en/quote/600312.CN.md) ## Related News & Research - [03:00 ETCorinex stellt Grid Intelligence Node vor: präzise Transparenz über den tatsächlichen Netzzustand im Niederspannungsnetz](https://longbridge.com/en/news/296747686.md) - [Trump planning visit to Ireland for tournament at his golf course](https://longbridge.com/en/news/296800686.md) - [FirstRand Bank lists ZAR 10 million structured product notes on JSE](https://longbridge.com/en/news/296785696.md) - [Enersize hands Swedish compressed-air efficiency operations to ONE Nordic in 20% revenue-share deal](https://longbridge.com/en/news/296743761.md) - [Trump's trade war with Canada could lead the U.S. back to quantitative easing](https://longbridge.com/en/news/296820985.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**