Shanghai Electric (02727.HK) Becomes a Hot Hong Kong Stock Due to Improved Seawater Desalination Ranking

Shanghai Electric (02727.HK/601727.SS) became a hot Hong Kong stock due to its improved ranking released by the International Desalination and Reuse Association (IDRA) and Global Water Intelligence (GWI): the company rose to 5th place in the global ranking of installed capacity for new seawater desalination projects from 2024 to 2025, an increase of four places from the previous period [1]. The company’s “Heat + Membrane” dual technology route leads in the field of green water treatment solutions, providing sustainable water resource solutions to global customers [1].
From the perspective of price and trading volume, after the news was released (December 30, 2025), Shanghai Electric’s A-share (601727.SS) increased by 1.77% on December 31, closing at $8.61. The trading volume on that day reached 177.92 million shares, an increase of 106% compared to the previous day’s 86.34 million shares. The intraday high was $8.70 and the low was $8.43 [0]. The industrial sector fell by 0.88% that day, and Shanghai Electric’s rise significantly outperformed the sector [0].

1. The improved seawater desalination ranking is the core catalyst for the short-term stock price rise, indicating the market’s recognition of the company’s technical strength in the green water treatment field. Despite the overall downturn in the industry, the stock still rose against the trend.
2. The company’s price-to-earnings ratio reached 172.20 times, far higher than the industry average, reflecting the market’s high expectations for its future growth, but there is also a risk of overvaluation [0].
3. Although the trading volume increased sharply that day, it was still below the long-term average, indicating limited market participation, and the sustainability of the short-term stock price rise is worthy of attention [0].

• Seawater desalination projects have the characteristics of long cycles and high investment, and there are uncertainties in future project execution and returns.
• The company’s price-to-earnings ratio is significantly higher than the industry average, which may face valuation correction pressure [0].
• Limited market participation, the sustainability of short-term stock price performance is questionable.

• The leading technical position in the field of green water treatment solutions and the improvement of global ranking are expected to attract the attention of long-term investors and promote the company’s business expansion.

• Shanghai Electric’s global seawater desalination ranking rose to 5th place, using the “Heat + Membrane” dual technology route, with leading technical strength [1].
• On December 31, 2025, its A-share (601727.SS) increased by 1.77%, trading volume increased by 106%, closing price at $8.61, intraday high at $8.70 (resistance level), low at $8.43 (support level) [0].
• The company’s price-to-earnings ratio is 172.20 times, far higher than the industry average, with the risk of overvaluation [0].