Core Viewpoint - The development of ultra-high voltage (UHV) technology is crucial for seizing strategic opportunities in the energy transformation era, with Dalian Electric Porcelain emerging as a leader in this field due to its technological advantages and market share [1][2]. Industry Overview - The Chinese government has introduced multiple policies to promote UHV technology development, with a planned investment of nearly 3 trillion yuan during the 14th Five-Year Plan period, focusing on UHV projects [2]. - In 2023, the construction of UHV projects accelerated, with the total investment in power engineering reaching 1.78 trillion yuan, a year-on-year increase of 13.2%, marking the highest level in nearly a decade [2]. - By 2025, investments in UHV projects are expected to continue to grow, with State Grid's investment projected to exceed 650 billion yuan and Southern Grid's investment at 175 billion yuan, totaling 825 billion yuan [2]. Company Positioning - Dalian Electric Porcelain holds a nearly 50% market share in the UHV insulator sector, benefiting from over a century of technological accumulation and a strong position in high-end markets [3]. - The company has a significant presence in the production of suspension porcelain insulators, which account for approximately 80% of its revenue, and has achieved international leading standards in its products [3]. - In 2023, Dalian Electric Porcelain won 48.03% of the bids for UHV porcelain insulators from State Grid, significantly outpacing competitors [3]. Recent Developments - The company has recently entered the construction phase of the "Gansu-Zhejiang ±800 kV UHV DC Transmission Project," which is notable for being the world's first ±800 kV flexible DC project, addressing challenges related to renewable energy integration [4]. - Dalian Electric Porcelain's subsidiary has secured multiple contracts, including a project worth approximately 29.7 million yuan, which is expected to contribute about 35.38% to the company's 2023 revenue [3]. Global Expansion - Over the past 70 years, Dalian Electric Porcelain has expanded its global footprint, exporting products to over 100 countries and transitioning from product export to technology export [5]. - The company has adopted a dual strategy focusing on traditional markets and emerging regions, with significant orders from countries like Vietnam, Pakistan, and Saudi Arabia [5]. Financial Performance - In 2024, Dalian Electric Porcelain reported a record revenue of 1.496 billion yuan, a year-on-year increase of 78.21%, and a net profit of 211 million yuan, up 303.30% [6]. - The company’s first-quarter revenue for 2025 reached 224 million yuan, reflecting a 30.60% increase year-on-year, with a strong order backlog supporting future growth [6]. Risk Management - Dalian Electric Porcelain has established a robust risk management framework, with minimal exposure to U.S. tariffs due to its low business volume with the U.S. [7]. - The company is well-positioned to continue its growth trajectory as the new power system construction progresses [7].