In the opening year of the “15th Five-Year Plan,” power grid investment is surging, with the two major grid operators investing nearly 400 billion yuan in the first half of the year alone. Half-year reports from 156 A-share listed companies in the power equipment sector have all been disclosed, with revenue and profits showing broad growth. UHV and distribution network intelligence are the dual investment themes, while AI computing power demand is emerging as a “second growth curve” for the power equipment industry.
On September 8, in Jingyan County, Leshan City, Sichuan, workers were hoisting tower cross-arms. Yang Yi, deputy manager of the owner’s project execution at State Grid Sichuan Construction Company, introduced: “We establish an account for each tower, work backward from the deadline, and ensure completion of all 22 tower assembly tasks by the 10th.”
This is the construction site of the Panxi 1000-kilovolt UHV AC project, the first UHV AC transmission and transformation project to commence construction during the “15th Five-Year Plan” period nationwide, with total investment of approximately 23.2 billion yuan, expected to be completed and put into operation by 2028.
At the same time, from the desert Gobi of Ordos in Inner Mongolia to the great Yellow River crossing of the Long-dian-to-Zhejiang project, multiple UHV projects are advancing simultaneously across China’s map.
This is a microcosm of the surging grid investment in the opening year of the “15th Five-Year Plan.” A power grid construction project worth 5 trillion yuan is being fully unveiled.
In May this year, the National Development and Reform Commission held a press conference introducing that during the “15th Five-Year Plan” period, China’s new power grid investment is expected to exceed 5 trillion yuan.
Where is the money going? UHV and distribution network intelligence are the dual main lines.
Statistics from an institution show that as of the end of July 2026, State Grid had publicly announced UHV equipment bidding amounts of 29.3 billion yuan, exceeding full-year levels in 2024 and 2025. The overall UHV bidding amount in 2026 reached 43.66 billion yuan, a year-on-year increase of 97.7%. GIS equipment has achieved 100% domestic supply, with the industry’s localization rate exceeding 95%.
CITIC Securities stated in a research report that the cumulative winning bid amount in the first three batches this year reached 29.261 billion yuan, far exceeding the full year of 2025. Against the backdrop of the “Desert, Gobi and Barren” large base delivery and power grid upgrade and transformation, order and performance support for the power grid equipment sector continues to strengthen.
The heat of investment is translating into concrete results in corporate half-year reports.
According to Wind data, half-year reports from 156 A-share listed companies in the power equipment sector have all been disclosed for 2026, with 96 companies showing year-on-year revenue growth and 60 showing year-on-year net profit growth. The combined H1 revenue of 54 key companies reached 357.6 billion yuan, up 13% year-on-year; the combined revenue of 65 key targets in the grid sector reached 327.2 billion yuan, up 15%.
Looking at individual stocks, industry chain leaders generally delivered outstanding reports.
State Grid Nari’s H1 revenue reached 27.767 billion yuan, up 14.54% year-on-year; net profit attributable to shareholders was 3.073 billion yuan, up 4.08%. Even more impressive than profit was orders, with new contract values of 45.633 billion yuan in H1.
Sieyuan Electric’s H1 revenue reached 10.795 billion yuan, up 27.05% year-on-year, setting a new record for the same period; net profit attributable to shareholders was 1.464 billion yuan, up 13.23%.
Pinggao Electric’s H1 revenue was 5.374 billion yuan, down slightly 5.64% year-on-year, but net profit attributable to shareholders reached 817 million yuan, surging 22.87% year-on-year; non-GAAP net profit was 798 million yuan, up 20.76%. Behind the revenue drop and profit rise is product structure optimization and gross margin improvement.
China XD’s H1 revenue was 12.233 billion yuan, up 7.96% year-on-year; net profit attributable to shareholders was 688 million yuan, up 15.03%; gross margin reached 24.5%, up 2.9 percentage points year-on-year, with contract liability balance at period end of 6.23 billion yuan.
Baobian Electric’s H1 revenue was 3.846 billion yuan, up 28.43% year-on-year; net profit attributable to shareholders was 134 million yuan, surging 77.34% year-on-year, ranking first among transformer head companies in growth rate. More noteworthy is that the company won its first 1000-kilovolt UHV transformer order for nuclear power engineering support.
TBEA’s H1 revenue was 56.585 billion yuan, up 16.91% year-on-year; net profit attributable to shareholders was 2.552 billion yuan, down 19.84% year-on-year, mainly dragged down by the polysilicon business. Its transmission and transformation main business showed remarkable resilience: electrical equipment product revenue was 14.968 billion yuan, up 11.98% year-on-year, with gross margin of 19.55%; domestic market signing in the transmission and transformation industry reached 37.285 billion yuan in H1, with ample order reserves.
“The core feature distinguishing this round of UHV construction from the previous round is the significantly increased proportion of AC projects, with more apparent demand pull for primary equipment such as GIS and transformers,” Orient Securities stated. “With the implementation of State Grid’s ‘15th Five-Year Plan’ four-trillion-yuan investment plan at the beginning of 2026, the domestic power equipment industry is expected to maintain high prosperity.”
The spillover effect of UHV main network construction is spreading across the entire transmission and transformation industry chain. The dividends of trillion-yuan investment belong not only to the main equipment manufacturers in the spotlight, but also to a batch of small-cap companies known as “hidden champions” in the seemingly inconspicuous “screws” behind the scenes, who have also delivered outstanding half-year reports.
A typical example is Huaming Equipment, which makes transformer tap changers. H1 operating revenue was 1.281 billion yuan, up 14.25% year-on-year, with overseas revenue of 449 million yuan, surging 44.59%, setting a new record. Dalian Electrics, which has long occupied about 60% of the market share for UHV AC porcelain insulators and ranks consistently high in State Grid bidding, reported H1 revenue of 864 million yuan, up 48.59% year-on-year, net profit attributable to shareholders of 155 million yuan, up 232.18% year-on-year from a low base last year, with gross margin surging from 28.92% to 38.69%.
If grid investment is the foundation of the power equipment industry, then the explosion of AI computing power demand is injecting entirely new growth momentum into this traditional industry.
TGOOD’s half-year report shows H1 revenue of 6.635 billion yuan, up 6.07% year-on-year; net profit attributable to shareholders was 428 million yuan, up 30.73%; non-GAAP net profit was 350 million yuan, up 40.05%. The half-year report explicitly disclosed that the company continues to deepen business cooperation with computing center customers such as ByteDance, Alibaba, Tencent, and the three major operators. Computing center business contract values doubled compared to the same period last year. In June 2026, the company released a high and low voltage AC/DC integrated energy solution for AI computing centers, providing energy infrastructure support for gigawatt-class AI data centers.
Zhongheng Electric’s data center power supply business has completed the leap from growth point to “main engine.” H1 revenue was 1.262 billion yuan, up 41.67% year-on-year. Among them, data center power supply products generated revenue of 808 million yuan, surging 98.48% year-on-year, accounting for 63.97% of revenue, up from more than 40% in the same period last year.
MEAN WELL, as the only A-share company打入 NVIDIA’s high-end computing platform supply chain, reported H1 revenue of 6.061 billion yuan, up 29.68% year-on-year; power supply business revenue was 1.84 billion yuan, surging 60.92%, becoming the largest growth engine; overseas revenue share rose to 43%.
One is a traditional box-type substation leader entering computing power supply; one is a communications power supply company transforming into data center power; one directly positions at the global AI computing power supply base. Three different paths point to the same trend: AI computing power is becoming the “second growth curve” of the power equipment industry. With computing-power-grid coordination rising to national strategy in 2026, the average increase of 37 AIDC power supply concept stocks in A-shares since the beginning of the year is significantly higher than the sector average.
CICC pointed out that global AIDC infrastructure construction is accelerating, with strong demand for related power equipment. Chinese power equipment enterprises are expected to win orders凭借 short delivery cycles, high cost-performance ratios, and well-placed after-sales services. The power equipment industry showed overall stable upward performance in 2026, driven by dual wheels of AIDC and energy transition.
Grid and computing power, infrastructure and new productive forces, are forming a mutually reinforcing positive cycle.
Grid investment is the ballast stone, computing power demand is the new engine. Together, power equipment is moving from a supporting industry in the past to a strategic industry concerning energy security and the digital economy. This is both the intensity of China’s infrastructure investment and the speed of new productive forces.
Source:China Energy News Network