China XD(SH:601179) Chang Jiang Shang Bao·2025-07-21 23:14Core Viewpoint - The stock price of China XD Electric (601179.SH) surged to its daily limit despite a major shareholder, GE SMALLWORLD (SINGAPORE) PTE LTD, announcing plans to reduce its stake, indicating market confidence in the company's growth potential [1][2]. Group 1: Shareholder Actions - GE SMALLWORLD plans to reduce its holdings by up to 154 million shares, representing 3% of the total share capital, due to its own operational needs [2][3]. - The reduction will occur between August 12 and November 11, 2025, with a maximum potential cash-out of approximately 975 million yuan based on the closing price prior to the announcement [3]. Group 2: Company Performance - China XD Electric has shown consistent growth in net profit, with a reported 2.95 billion yuan in Q1 2025, marking a year-on-year increase of over 40% [2][8]. - The company has achieved significant revenue growth from 2021 to 2024, with revenues of 5.44 billion yuan, 6.12 billion yuan, 8.85 billion yuan, and 10.54 billion yuan, reflecting growth rates of 123.10%, 12.55%, 42.99%, and 17.50% respectively [8][11]. Group 3: Market Position and Projects - China XD Electric is a key player in the electric equipment sector, involved in the research, design, and manufacturing of high-voltage and ultra-high-voltage products, with capabilities recognized at a global level [8]. - The company has recently secured significant contracts, with a total of 44.7 billion yuan from three major bids, indicating strong demand for its products [9][11]. Group 4: Shareholder Returns - Since its listing, China XD Electric has distributed a total of 4.429 billion yuan in cash dividends, with an average dividend payout ratio of 50.38% [2][11]. - The company maintains a strong financial position, with cash reserves of 9.257 billion yuan as of Q1 2025, significantly exceeding its interest-bearing liabilities of 1.167 billion yuan [11].