Core Viewpoint - The report from Open Source Securities highlights that Pinggao Electric has a robust order backlog and continues to achieve high-quality growth in its operating performance in the first half of 2025 [1] Group 1: Financial Performance - As of June 30, 2025, the company's contract liabilities reached 1.715 billion yuan, an increase of 517 million yuan compared to the end of 2024 [1] - In the first half of 2025, the company secured 4.48 billion yuan in the power grid market, representing a year-on-year increase of 49.2% [1] - The company also won bids for ultra-high voltage equipment amounting to 461 million yuan, with a year-on-year growth of 62.6% [1] Group 2: Market Position and Orders - The company maintains a leading market share in the power grid sector, with continuous breakthroughs in external orders [1] - It has successfully secured framework agreements with three central enterprise clients and has been awarded the project for intelligent inspection robot clusters at the Zhongmei Substation [1] - The company achieved a milestone by applying 1000 kV GIL in the external market for the first time [1] Group 3: International Expansion - The company is accelerating its transformation in the international market, having won a bid for five 132 kV high-voltage mobile transformers in Saudi Arabia [1] - It has also made its first entry into the Mexican market with a 420 kV GIS project [1] Group 4: Future Outlook - In 2025, the total investment from the State Grid Corporation and the Southern Power Grid is expected to exceed 825 billion yuan, which positions the company to benefit significantly from the accelerated construction of new power systems [1] - Given the company's solid position in the power grid market, the long-term development prospects are viewed positively, and a "buy" rating is maintained [1]

Group 1 - The company reported a high-quality growth in operating performance for H1 2025, achieving a revenue of 5.696 billion yuan, a year-on-year increase of 13.0%, and a net profit attributable to shareholders of 666 million yuan, up 24.6% [1] - The sales gross margin and net profit margin improved to 24.7% and 12.6%, respectively, both up by 1.2 percentage points year-on-year [1] - The company adjusted its profit forecast for 2025-2027 due to fluctuations in grid investment and overseas markets, expecting net profits of 1.391 billion, 1.683 billion, and 1.935 billion yuan for the respective years [1] Group 2 - The company has a robust order backlog, with contract liabilities reaching 1.715 billion yuan as of June 2025, an increase of 517 million yuan from the end of 2024 [2] - In H1 2025, the company secured significant contracts in the grid market, with bids for transmission and transformation equipment totaling 4.480 billion and 461 million yuan, reflecting year-on-year increases of 49.2% and 62.6% [2] - The company is expanding its international market presence, having won contracts for high-voltage equipment in Saudi Arabia and Mexico [2] Group 3 - The main grid investment remains strong, with total investments by the State Grid Corporation and Southern Power Grid expected to exceed 825 billion yuan in 2025, providing significant benefits to the company [3] - In H1 2025, nationwide investment in grid construction reached 291.1 billion yuan, a year-on-year increase of 14.6% [3] - The National Energy Administration has launched an action plan for the high-quality development of distribution networks from 2024 to 2027, aiming to enhance the intelligence of distribution networks to meet the demands of distributed renewable energy and electric vehicle charging facilities [3]

Group 1 - The company reported a strong performance in the first half of 2025, with operating revenue reaching 5.696 billion yuan, a year-on-year increase of 12.96%, and net profit attributable to shareholders of 666 million yuan, up 24.59% [1] - The company has maintained its competitive position in the power grid market, with significant growth in bidding amounts for ultra-high voltage projects and a leading market share [1] - The company has made notable advancements in international markets, securing contracts for high-voltage products in Saudi Arabia and Mexico [1] Group 2 - The company adheres to an innovation-driven development strategy, increasing R&D investment to 239 million yuan, a year-on-year growth of 48.32% [2] - The company achieved significant technological innovation, winning 10 provincial and ministerial-level awards and having 9 new products recognized at the national level [2] - Breakthroughs in product development include the world's first 550 kV bypass triggering gap device and advancements in various high-voltage and distribution network products [2] Group 3 - The company is accelerating its digital transformation, completing research and development for a smart factory and applying digital platforms in 28 projects [3] - The company announced a profit distribution plan, proposing a cash dividend of 1.88 yuan per 10 shares, totaling 255 million yuan, with a cash dividend ratio of 38.37% [3]