---
title: "The leading power equipment company's performance has exploded, not just in the United States! Europe is also facing a power shortage!"
type: "News"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/news/272782874.md"
description: "Leading power equipment company SIEYUAN's 2025 performance report exceeded market expectations, with projected revenue of 21.205 billion yuan, a year-on-year increase of 37%, and a net profit attributable to the parent company of 3.163 billion yuan, a year-on-year increase of 54%. The company has performed strongly in overseas markets, especially in North America, with overseas orders expected to grow by more than 50% year-on-year. In the next 10 years, Europe needs to invest 3 trillion euros to upgrade its power grid, while the United States is expected to invest 700 billion dollars. SIEYUAN is expected to become a top-tier international power equipment supplier in the global power grid construction supercycle"
datetime: "2026-01-16T04:10:46.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/272782874.md)
  - [en](https://longbridge.com/en/news/272782874.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/272782874.md)
---

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# The leading power equipment company's performance has exploded, not just in the United States! Europe is also facing a power shortage!

Electric power is power!

SIEYUAN, a leading company in the export of electric power equipment, reported its 2025 performance exceeding market expectations, with both year-on-year and quarter-on-quarter performance accelerating, once again validating the high growth and high profitability of the industry going overseas!

In the next 10 years, Europe needs €3 trillion in investment to upgrade its power grid, while the United States is expected to invest $700 billion in grid upgrades before 2030. Are Chinese electric power equipment companies just starting their journey into the vast ocean? Which companies in specific segments have competitive advantages during this supercycle?

## **1\. What happened? Leading performance explosion**

Electric power is power!

One of the leading companies in the export of electric power equipment, SIEYUAN, released its 2025 performance yesterday, exceeding market expectations and showing signs of acceleration year-on-year and quarter-on-quarter. Today, the stock hit the daily limit.

Looking specifically at the company's business.

The company expects to achieve revenue of 21.205 billion yuan in 2025, a year-on-year increase of 37%, with a net profit attributable to the parent company of 3.163 billion yuan, a year-on-year increase of 54%, and a non-recurring profit of 2.958 billion yuan, a year-on-year increase of 58%. Among them, the company expects to achieve revenue of 7.378 billion yuan in Q4 2025, a quarter-on-quarter increase of 46% and a year-on-year increase of 40%, with a net profit attributable to the parent company of 999 million yuan, a quarter-on-quarter increase of 79% and a year-on-year increase of 18%, and a non-recurring profit of 922 million yuan, a quarter-on-quarter increase of 95% and a year-on-year increase of 15%. The company has successfully broken through new overseas market customers, and its performance has exceeded market expectations.

Benefiting from continuous breakthroughs in overseas market business, the company's profitability continues to improve. In 2025, the company's net profit margin attributable to the parent company is expected to be 14.92%, a year-on-year increase of 1.66 percentage points, and the non-recurring net profit margin attributable to the parent company is expected to be 13.95%, a year-on-year increase of 1.80 percentage points. Among them, in Q4 2025, the net profit margin attributable to the parent company is expected to be 13.51%, a year-on-year increase of 2.47 percentage points, and the non-recurring net profit margin is expected to be 12.50%, a year-on-year increase of 3.13 percentage points. The company's profitability has maintained year-on-year growth every quarter, and the growth rate is continuously expanding. With the delivery of orders for high-voltage electric power transformers and circuit breakers in the North American market, the company's profit margin is expected to rise further.

From a business logic perspective, the domestic external business cultivates flagship products such as SSC and grid-type energy storage, growing into champions in specific fields. The company's international business is flourishing, and it is expected that the company's overseas orders in 2025 will maintain a year-on-year growth of over 50%, especially with remarkable breakthroughs in the North American market. In the supercycle of global grid construction and the wave of AI infrastructure development, the company has the opportunity to grow into a leading international electric power equipment supplier.

## **2\. Why is it important? Milestone of the supercycle**

In the next 5 years, the global energy transition and the wave of AI will drive a super new cycle of "Chinese electric power equipment premium." SIEYUAN's performance can be regarded as a milestone of the supercycle, worthy of careful reading of the business details. Currently, the global power system is undergoing the most profound paradigm shift since the Edison era. Goldman Sachs pointed out in its latest research that global grid equipment is in a state of "structural shortage," which is not only due to the replacement of outdated grids in Western countries but also due to AI data centers (AIDC) The new power load brought about by explosive growth. Against this backdrop, Chinese power equipment companies are transforming from "domestic suppliers" to "global challengers" with their high delivery efficiency, cost advantages across the entire industry chain, and leading technology in the ultra-high voltage (UHV) field.

In addition to the well-known U.S. power grid, Europe is also nurturing a large-scale, uniquely logical, and relatively open incremental market for the Chinese supply chain. Under the dual pressure of "AI computing power catch-up" and "deep decarbonization of the energy structure," there is a strong demand for offshore wind power and cross-border power interconnection equipment that differs from the logic of the United States. Leading Chinese power equipment companies will gain structural growth opportunities in this strategic European market, leveraging their comprehensive advantages in cost, technology iteration speed, and large project delivery experience, achieving a rebalancing of their global layout.  The current market situation in Europe is as follows:

① Accelerated construction, surging demand: Europe, as the world's third-largest data center market, is rapidly catching up. The European Union has launched the "InvestAI" plan, aiming to triple data center capacity. In 2024, investment in European data centers is expected to reach a historic high of $69 billion, with North American cloud service giants (CSPs) being the main driving force. CBRE predicts that by 2025, the supply of data centers in Europe will reach 871MW, a year-on-year increase of 34%.

② Power bottlenecks become prominent: Data centers are "power hogs." In traditional core hubs FLAP-D (Frankfurt, London, Amsterdam, Paris, Dublin), data centers have consumed 33%-42% of the electricity in these cities, with Dublin even reaching 80%. ICIS estimates that by 2030, the share of electricity demand from European data centers will increase from 3% to 4.5%, with its growth contribution exceeding that of electric vehicles. The existing power grid, especially in core cities, can no longer meet the explosive growth demand in terms of capacity and connection queuing time (up to over 8 years).

(European power operators and submarine cable manufacturers market performance) 
Europe faces dual pressures of green constraints on power supply structure and cost dilemmas—

① Decline of natural gas, renewable energy taking the lead: Unlike the United States, Europe's transition in power structure is more resolute. In 2024, EU natural gas generation will decline for the fifth consecutive year, with renewable energy generation accounting for 47%. High and unstable natural gas prices (long-term above pre-crisis levels) make it neither economical nor sustainable to rely on gas power to meet new demand.

② Wind power becomes the mainstay, especially offshore wind power: Wind power has become the second-largest source of electricity in the EU. More importantly, in the power purchase agreements (PPAs) signed by data center operators to fulfill net-zero commitments and meet government mandates (such as Germany's requirement for data centers to use 100% renewable energy starting in 2027), wind power accounts for over 50% Among them, offshore wind power accounts for the majority of the construction capacity of data center PPAs, due to its stable power generation, large scale, and high compatibility with the energy consumption characteristics of large data centers.

③ The shift of the geographical center and the rise of Northern Europe: Due to the saturation of the power grid and high electricity prices in the FLAP-D region, there is a clear trend of strategic transfer of data center construction to Northern Europe. In the first three quarters of 2025, 57% of the signed contracts for AI data centers in Europe came from Northern European countries. 
The path chosen by Europe to resolve the above contradictions happens to be an area where Chinese enterprises have global competitiveness, forming two clear investment main lines:

Main Line One: Deep-sea opportunities in the offshore wind power industry chain

Europe is the birthplace and one of the largest markets for offshore wind power globally. To achieve renewable energy goals, especially to provide green electricity for data centers moving north, large-scale offshore wind power projects are being planned. The North Sea and the Baltic Sea are key development areas. The EU plans to reach at least 60GW of installed offshore wind power capacity by 2030, which requires thousands of large wind turbines and supporting infrastructure.

Chinese industries have competitive advantages:

① Wind turbines and core components: Chinese manufacturers, represented by Mingyang Smart Energy, have made rapid progress in large-scale, typhoon-resistant, and deep-sea technology, and have the strength to compete with international giants. They have significant advantages in cost control and delivery efficiency.

② Marine engineering foundations and construction: Companies like Dajin Heavy Industry and Hailey Wind Power are globally leading in the manufacturing of offshore wind tower structures, jackets, and pipe piles, and have a track record of supplying to top European projects (such as the UK Moray West).

③ Submarine cables: This is one of the segments with the highest technical barriers. Leading companies like Dongfang Cable have broken through ultra-high voltage AC/DC submarine cable technology, with product quality receiving international certification and securing orders in Europe and Southeast Asia. The demand for high-voltage submarine cables for European grid interconnection and offshore wind power transmission is enormous, and Chinese companies are expected to break the long-standing monopoly held by companies like Prysmian and Nexans.

Main Line Two: Equipment demand for grid upgrades and cross-border power interconnection

To transport Northern Europe's cheap green electricity (hydropower, wind power) to load centers in Western and Southern Europe, and to enhance the resilience and flexibility of the entire European grid, large-scale upgrades and expansions of the grid are necessary, especially for cross-border interconnection lines. According to the European Network of Transmission System Operators for Electricity (ENTSO-E) plan, by 2030, the cross-border transmission capacity in Europe needs to increase from the current 126GW to 161GW. The "offshore corridor" in the North Sea and the Baltic Sea will bear 30% of the new capacity.  Chinese industries have competitive advantages:

① Primary equipment for power transmission and transformation: Companies like SIEYUAN, Huaming Equipment, China Xidian, and TBEA have mature technologies in high-voltage/super high-voltage transformers and gas-insulated switches (GIS), which have been widely applied in complex domestic grid projects, and have the capability to provide core equipment for European high-voltage transmission projects ② Flexible DC Transmission (VSC-HVDC) Technology: This is the optimal technical solution for the integration of large-capacity offshore wind power and asynchronous interconnection of power grids over long distances. Chinese companies have mastered the full chain capabilities of design, manufacturing, and debugging of this system in the engineering practices of State Grid and Southern Power Grid, making them one of the few players capable of providing this solution.

③ Intelligent Distribution Network Equipment: In response to the access of distributed energy and demand-side management, there is a strong demand for upgrading distribution networks in Europe. Companies like Jinpan Technology (dry-type transformers) and Igor (high-frequency magnetic devices) are competitive in product energy efficiency and intelligence levels, and have entered the supply chain of the high-end European market.

The European market is more open and focuses more on project costs, technical reliability, and delivery efficiency. This provides market space for high-quality products from China that have cost-performance advantages.

## **III. What to Focus on Next? Value Logic of Segmented Links and Leading Companies**

Why can Chinese manufacturing enjoy this round of premium?

① Delivery Cycle: The "Time Dimension" of Core Competitiveness

Goldman Sachs pointed out in its research on Sieyuan Electric that the delivery cycle for transformers from leading Chinese companies is about 6-9 months, while global competitors (such as Hitachi Energy, Siemens Energy, GE Vernova) have extended their delivery cycles to 2-3 years. In the current race against time for AIDC construction, this delivery capability gap constitutes a substantial competitive barrier.

② Vertical Integration of the Entire Industry Chain and Cost Premium

The Chinese power equipment industry has a complete chain from raw materials (oriented silicon steel, copper materials) to core components (tap changers, bushings, insulating materials) to complete machine integration. Against the backdrop of global inflation and labor shortages, the manufacturing costs of Chinese companies are 30%-40% lower than similar products in Europe and the United States, while maintaining a high gross margin, reflecting strong cost transfer capabilities.

The market has previously viewed power equipment as a low-margin manufacturing industry, but Sieyuan Electric's financial data is refuting this view. As the proportion of overseas orders increases (overseas gross margins are usually 10-15 percentage points higher than domestic), the overall gross margin of leading domestic companies is entering an upward channel. Let's look at which segmented link companies have the window of industrial dividends.

① Core Links of Power Transmission and Transformation: Transformers and Switchgear

Value Logic: Transformers are the "heart" of the power grid, and in the context of global shortages, their premium space is the largest.

② The Core "Throat" of Transformers: Tap Changers

Value Logic: Tap changers (OLTC) are the core regulating components of transformers, with extremely high technical barriers, and only a few companies globally master this technology.

Leading companies have a domestic market share of over 90%, second only to Germany's MR globally. Their business logic is similar to "blade + blade holder," with stock maintenance and spare parts replacement contributing to extremely high cash flow and profit margins.

③ Ultra-High Voltage (UHV) and the Brain of the Power Grid: Secondary Equipment and General Contracting Capability

Value Logic: UHV is China's "golden business card" for going global, and is key to solving the mismatch of energy resources.

Leading company Guodian Nari is the king of power grid digitization and scheduling. Its core advantage lies in being the absolute main force of the national team, possessing monopolistic technology in power grid scheduling, substation automation, and DC transmission (high-voltage direct current relay protection) With the construction of the new power system, the demand for "software-defined" and "digitalization" in the power grid has surged. NARI not only benefits from the increase in domestic ultra-high voltage bidding but also possesses irreplaceability in overseas high-end market bidding for grid integration and control systems.

④ Distribution Network and AIDC Specialized Equipment: New Direction for Going Abroad

Value Logic: As the distribution network transforms from "unidirectional power receiving" to "bidirectional interaction," there is significant room for upgrading distribution network equipment.

The construction of power grids in emerging overseas markets is currently in the process of going from 0 to 1. Haixing Electric has extended from smart meters to microgrids, energy storage, and EPC contracting, creating a closed loop of "products + services." Leading enterprises have delivery advantages due to their production capacity overseas.

In summary, the power equipment industry is currently in a state of "low debt, high cash, full orders." Compared to the 30-40 times PE valuation of American peers (such as Eaton, Schneider), Chinese leading companies typically have a PE ratio between 15-25 times. With global capital recognizing the "super cycle of power equipment," Chinese enterprises still have dividends to look forward to in the future. As overseas high-margin orders (usually 10-15% higher than domestic) peak in delivery between 2026-2027, the performance of relevant leaders is expected to achieve sustained compound growth.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk.

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