SIEYUAN(SZ:002028)2026-01-19 02:32Summary of Conference Call Notes Industry Overview - The conference call discusses the Chinese power grid industry, specifically focusing on the State Grid Corporation of China and its investment plans during the 15th Five-Year Plan (FYP) period from 2026 to 2030. [1][3] Key Points and Arguments 1. Investment Targets: The State Grid aims for a fixed-asset investment of Rmb 4 trillion during the 15th FYP, a 40% increase from the Rmb 2.8 trillion during the 14th FYP. This indicates an annual investment of at least Rmb 800 billion, translating to a CAGR of at least 6%. [1][8] 2. Growth Segments: The Ultra High Voltage (UHV) segment is expected to grow the fastest at 24% year-on-year in 2026E. Investments will shift towards smart grid infrastructure from 2028E to 2030E due to the increasing share of renewable energy. [2] 3. Distribution vs. Transmission: Over the 2026E-2030E period, distribution investments are projected to grow faster than transmission, increasing its contribution to total investment from 57% to 59%. [2] 4. Power Transmission Capacity: The State Grid plans to enhance cross-regional and cross-provincial power transmission capacity by over 30% compared to the end of the 14th FYP. [3] 5. Renewable Energy Integration: By 2030, renewable energy is expected to account for approximately 30% of total power generation, supporting the integration of up to 900 GW of distributable renewable energy capacity. [7] 6. Market Dynamics: The competition landscape shows market share consolidation among top players like Sieyuan, Pinggao, and TBEA. [10][29] Additional Important Insights - Investment Trends: In 2025, the disclosed grid investment reached Rmb 560.4 billion, marking a 6% year-on-year increase, with expectations of achieving 11% year-on-year by year-end. [10][12] - Equipment Tendering: Transmission equipment tendering grew by 26% year-on-year in 2025, with primary equipment at 27% and secondary equipment at 20%. However, UHV equipment tendering declined by 12% year-on-year due to fewer new lines starting construction. [10][14][22] - Future Expectations: Five new UHV lines are expected to start construction in 2026E, with UHV investments anticipated to peak in 2027E. [25] - Consolidation in Product Categories: There is noted consolidation in product categories such as GIS, disconnectors, and power transformers, with significant market shares held by leading companies. [29] This summary encapsulates the critical insights from the conference call regarding the Chinese power grid industry, highlighting investment plans, growth segments, and market dynamics.