SIEYUAN(002028)2025-03-10 03:11Summary of China Power Grid Equipment Research Industry Overview - The report focuses on the China Power Grid Equipment sector, specifically the procurement activities of the State Grid in 2025, which announced its first batch of power transmission and transformation equipment bidding totaling Rmb15.239 billion [1][2][3]. Key Companies and Market Share - TBEA secured the largest share with Rmb1.538 billion, representing 10.1% of the market. - China XD followed with Rmb1.443 billion or 9.5% market share. - Pinggao received Rmb1.355 billion (8.9% market share), while Sieyuan obtained Rmb1.053 billion (6.9% market share) [1][3]. - Notably, the new orders for Pinggao and Sieyuan are estimated to be 7% and 8% of their total domestic new orders in 2024, respectively [3]. Financial Forecasts - The report forecasts a 15% year-over-year increase in PRC power grid capital expenditure (capex) for 2025, with total capex expected to exceed Rmb650 billion, up from Rmb609.2 billion in 2024 [6][7]. - The expected net profit growth for Pinggao and Sieyuan is projected to be 20-25% year-over-year in 2025, while Xuji Electric's growth is anticipated to accelerate from 10% in 2024 to 15-20% in 2025 [1][6]. Procurement Strategy - The State Grid plans to conduct six batches of procurement for ultra-high voltage (UHV) construction in 2025, a reduction from eight batches in 2024, aimed at achieving greater efficiency and economies of scale [6][7]. - The average size of procurement batches is expected to increase due to more centralized purchasing practices [7]. Equipment Categories and Bidding Results - The bidding results included various categories: - Combined electrical appliances: Rmb4.394 billion - Power cables: Rmb2.524 billion - Transformers: Rmb3.549 billion - Switch cabinets: Rmb997 million - Relay protection and substation computer monitoring systems: Rmb661 million - Communication equipment integration: Rmb334 million [2]. Investment Recommendations - The report recommends a Buy rating for Pinggao and Sieyuan, while TBEA is rated as a Sell due to its loss-making polysilicon business and profit cuts from coal sales [1][5]. Additional Insights - The report indicates that at least 55 listed companies won bids in this procurement round, highlighting the competitive nature of the market [3]. - The average single package bid was Rmb27.56 million, with the maximum bid reaching Rmb450.5 million [2]. This summary encapsulates the critical insights and data from the research on the China Power Grid Equipment sector, focusing on procurement activities, market dynamics, and financial forecasts for key players.