The power grid equipment sector surges, Hanlan Co., Ltd. hits 7 limit-ups in 11 days

March 6th, the power grid equipment sector continued its upward trend, with multiple stocks hitting the daily limit, including ShunNa Co., HanLian Co., and GuangDian Electric. Among them, HanLian Co. has hit the limit up 7 times in the past 11 trading days, with a total increase of over 75%. The stock price is 9.83 yuan per share, and the total market value has risen to 32.7 billion yuan.

The acceleration of the global power grid infrastructure cycle is the core driver behind the sector’s sustained rise.

In January this year, State Grid Corporation announced that during the 14th Five-Year Plan, fixed asset investment is expected to reach 4 trillion yuan, a 40% increase compared to the 13th Five-Year Plan, with an average annual investment of 800 billion yuan. Including the Southern Power Grid’s estimated investment of about 1 trillion yuan during the same period, the combined investment of the two major grid companies during the 14th Five-Year Plan will approach 5 trillion yuan.

In overseas markets, the explosive growth of AI computing power has kept load pressures on European and American power grids high, prompting many to begin upgrading their grids. Recently, the three major regional grid operators in the U.S. have received approval for a total of $75 billion in transmission expansion projects; the EU expects grid investments to reach 1.2 trillion euros by 2040. However, domestic transformer and other core grid equipment production capacity in Europe and America is insufficient, with delivery schedules extending several years, making it difficult to meet the current surge in electricity demand.

Against this backdrop, domestic power grid equipment companies, leveraging technological and cost advantages, are poised to seize a wave of international opportunities. Customs data shows that China’s transformer exports in 2025 have hit a record high, with a year-on-year increase of 34.83%. Some companies’ data center supporting orders are already scheduled through 2027.

As a leading domestic provider of high-voltage and ultra-high-voltage cables, HanLian Co. will benefit from this trend. The company’s main business includes power cables and accessories systems, condition monitoring systems, and EPC (engineering, procurement, and construction) for transmission and transformation projects. Its key products include power cables, equipment cables, and special cables, with technological breakthroughs in ±535kV flexible submarine DC cables.

With strong technical strength, HanLian Co. continues to win bids for projects from State Grid and Southern Power Grid, setting a new record for the number of contracts in the Southern Power Grid market in 2025. Currently, its overseas revenue share is relatively low; in the first half of 2025, overseas business revenue was only 78 million yuan, but it has established a subsidiary in California, USA, and secured a 1.34 billion yuan land cable order in Singapore.

Overall, due to factors such as the sustained high prices of copper and aluminum raw materials, HanLian Co.’s performance shows a trend of “increased revenue but not increased profit.” Data indicates that in 2025, total operating revenue exceeded 10 billion yuan for the first time, reaching 10.467 billion yuan, a year-on-year increase of 13.04%; however, net profit attributable to shareholders was only 592 million yuan, down 9.59% year-on-year.