The total annual investment scale of the two networks may approach one trillion yuan, YuanCheng Co. hits the daily limit, and Jinpan Technology rises over 11%.

In the early trading session on April 8, the grid equipment sector saw volatile rebound gains. Yuanfa Shares (002692.SZ) briefly touched the daily limit. Jinpan Technology (688676.SH) rose more than 11%. Yigor (002922.SZ), Ziyang Innovation (688191.SH), Samson Medical (601567.SH), Haixing Electric Power (603556.SH), Anko Smart Electric (300617.SZ), Huaming Equipment (002270.SZ), and others also moved up in tandem.

On the news front, according to data from the National Energy Administration, in January to February 2026, the cumulative electricity consumption of the entire society totaled 1.65T kWh, up 6.10% year over year. From January to February 2026, newly added power generation installed capacity totaled 65.91 million kW, up 20.87%. In January to February 2026, the average utilization hours for generation equipment were 466 hours, down 39 hours year over year. In January to February 2026, cumulative grid investment reached RMB 83.75B, up 79.84%; cumulative investment in power sources totaled RMB 104.35B, up 32.35%.

In addition, the latest data show that in the first quarter, China’s grid investment growth rate exceeded expectations. Specifically, in the first quarter, the State Grid completed fixed-asset investment of nearly RMB 130 billion, up about 37%, driving upstream and downstream investment of more than RMB 250 billion. In the first quarter, Southern Power Grid invested RMB 38.45 billion, surging 49.5% year over year. Meanwhile, in January to February, China’s exports of power equipment totaled RMB 16.1 billion, up 33.6%.

Everbright Securities noted that looking ahead, in the second quarter and in the second half of the year, domestic grid investment will still remain at a high level, and the total annual investment scale of the two grid companies may be close to RMB 1 trillion. In particular, investment in ultra-high-voltage, the digital intelligence of distribution grids, and grid-computing power coordination will continue to be stepped up, and both earnings and valuations are expected to rise in tandem. Furthermore, with a surge in demand among major economic players in Europe and the U.S., China’s domestic power and grid equipment exports this year may continue to deliver high growth of 30% or more. Demand for sub-segments such as transformers and cables will continue to be released. Turning to the A-share market, investors may focus on three key sub-sectors of grid equipment: leading companies in ultra-high-voltage core equipment, major suppliers of transmission and transformation equipment, and export-oriented power equipment companies.