TBEA(SH:600089) Zhong Guo Neng Yuan Wang·2025-09-02 12:18Core Viewpoint - TBEA has been awarded a significant contract by Saudi Electricity Company for the localization procurement of ultra-high voltage and high voltage transformers and reactors, with an estimated total order value of 16.4 billion RMB, potentially reaching 11.5 billion RMB based on a minimum execution rate of 70% [1][2] Group 1: Contract Details - The contract includes the supply of 179 ultra-high voltage transformers, 108 ultra-high and high voltage reactors, and 391 high voltage transformers, with a minimum execution requirement of 70% [2] - TBEA plans to establish a manufacturing facility in Saudi Arabia for transformers and reactors to enable local production and supply, initially supplying from its Chinese factory until the local facility is operational [2][3] Group 2: Market Context - The demand for power equipment in the Middle East is robust, attracting global energy companies to participate in bidding [3] - TBEA has previously secured multiple orders in Saudi Arabia and the Middle East, enhancing its strategic value and supply capacity in the region [3] Group 3: Financial Performance - TBEA reported a revenue of 48.35 billion RMB in the first half of 2025, a year-on-year increase of 1.11%, with a profit total of 4.42 billion RMB, up 15.62% [4] - The company signed contracts worth over 1.12 billion USD in the first half of the year, reflecting a 65.91% increase compared to the same period last year [4] Group 4: Industry Outlook - The global power grid investment is expected to rise significantly, with projections of reaching 775 billion USD annually by 2030 and exceeding 870 billion USD annually by 2040 [4] - The export of transformer products from China reached 3.65 billion USD in the first half of the year, indicating a growing market share for TBEA in regions like the Middle East and West Africa [4][5]