Institutional Research | Smart Grid + Energy Storage + Data Center This company's high-voltage transformer orders are saturated, and reserved orders have already been for 6 months

Recently, several listed companies have released investor relations activity record announcements, disclosing their business communication content with institutions, revealing many progress and highlights in their business layouts.

Wangbian Electric: 35-220 kV Transformer Reserve Orders Have Been Pending for 6 Months

Wangbian Electric recently received inquiries from 17 institutions including Nuoxin Fund, Ping An Securities, and Huatai Asset Management.

During the investigation, Wangbian Electric revealed that orders for 220kV and below (35-220 kV) transformers are saturated, with reserve orders pending for 6 months. Recently, the company signed a framework agreement with China Energy Construction, and subsequent order amounts will depend on specific projects.

Wangbian Electric pointed out that, driven by the global power equipment market boom, large-scale upgrades and replacements of high-loss transformers during the “14th Five-Year Plan,” and other policies promoting “green and low-carbon” power equipment, coupled with the energy revolution and AI computing power trends, have further boosted demand for transmission and distribution equipment. It is expected that the prices of oriented silicon steel will gradually stabilize after market adjustments.

“The company’s product orders now cover regions including South America, Texas in the United States, and Oman. All the above orders are for data center projects,” Wangbian Electric stated. The company will continue to actively expand into international markets and focus on high-quality overseas projects in the future.

Regarding other orders, Wangbian Electric introduced that this year, through multiple channels such as bidding, the company has obtained orders in new energy, energy storage, wind power, and photovoltaic fields. As China accelerates the construction of a new power system during the “14th Five-Year Plan,” new energy storage is a new growth point. It is expected that energy storage, wind power, photovoltaic, and other new energy businesses will continue to contribute to the company’s performance.

Wangbian Electric’s main business involves the research, production, and sales of oriented silicon steel and power transmission, distribution, and control equipment.

CICC Securities’ latest research report pointed out that Wangbian Electric is expected to benefit fully from the domestic power grid investments during the “14th Five-Year Plan” and the demand for overseas data centers and power grid infrastructure. Meanwhile, the company’s integrated industry chain advantages are prominent, and it is expected to benefit from high-end transformer volume growth, high-grade silicon steel technology upgrades, and capacity releases.

The power grid equipment sector rose sharply today, with multiple stocks such as Baobian Electric and Baiyun Electric hitting the daily limit. Wangbian Electric closed up 7.50%, with a year-to-date increase of 66.44%. In ETF products, the Power Grid Equipment ETF (159326) surged 4.37% today, with a trading volume exceeding 1.5 billion yuan. This ETF is the only one in the market tracking the CSI Power Grid Equipment Index, with over 78% of its holdings in the secondary industry of power grid equipment.

Chongde Technology: Sufficient Orders and Full Capacity Production Line

Chongde Technology recently received inquiries from Industrial Securities, Guotai Fund, Nuoxin Fund, and other institutions.

During the investigation, Chongde Technology revealed that the company’s operations are normal, with sufficient orders, and production is scheduled reasonably based on order volume. Currently, the production line is operating at full capacity. The company has optimized and improved production equipment, processes, and logistics, steadily increasing capacity utilization. “As the company’s fundraising projects are gradually put into production, capacity will increase significantly, helping to meet the growing demand for the company’s business.”

Data shows that Chongde Technology’s main products and services include dynamic pressure oil film sliding bearings, wind power sliding bearings, high-speed permanent magnet motors, and industrial transmission and services, focusing on energy generation, industrial drive, petrochemical, and shipping sectors.

Chongde Technology stated that it has established long-term cooperation with many top international companies such as Siemens, GE, ABB, Ingersoll Rand, and Atlas. The company has also successfully supplied engine bearings to major domestic gas turbine manufacturers like Dongfang Electric, Shanghai Electric, and China National Heavy Duty Truck Group, achieving independent design and manufacturing of gas turbine sliding bearings.

Looking ahead, Chongde Technology said it will continue to deepen its main business of sliding bearings around the “internationalization, high-quality, and branding” strategy, expand into high-end markets and emerging industries, and timely develop industrial layouts in frontier technological fields to promote high-quality development.

It is worth noting that Chongde Technology recently made new progress in the nuclear power field. The company, in collaboration with Harbin Electric, successfully completed all factory acceptance procedures for the first set of the bidirectional thrust bearing for the Hualong One Pakistan Chashma C-5 project main pump, and it has been officially shipped to the project site.

CITIC Securities’ latest research report pointed out that sliding bearings benefit from the recovery of downstream markets and the trend of larger turbines, with the market steadily improving. The company is expected to achieve simultaneous growth in market share and profitability through a dual-driven model of domestic substitution and overseas expansion.

Guotai Haitong Securities also believes that, focusing on high-end dynamic pressure oil film sliding bearings, the demand in downstream fields such as wind power, nuclear power, gas turbines, and generators is rapidly increasing, and performance is expected to continue to release.

In the secondary market, Chongde Technology’s stock price rose 4.68% today, with a 33.92% increase since February.

(Source: Eastmoney Research Center)