Siyuan Electric (002028) Limit-Up Analysis: Resonance of Better-Than-Expected Performance and Policy Expectations

Siyuan Electric (002028) triggered a limit-up on January 16, 2026, with the core driver being the better-than-expected 2025 annual performance express report — the company achieved attributable net profit of RMB 3.163 billion, representing a year-on-year increase of 54.35%[2][4]. Combined with the policy expectation of State Grid’s trillion-yuan investment and the overall rally of the power grid equipment sector, the company’s stock was actively sought after by institutional capital, with a net inflow of RMB 120 million in main capital, accounting for 6.09% of total turnover[0]. This limit-up is the result of the resonance of three factors: fundamental improvement, favorable industry policies, and capital market recognition. However, in the short term, attention should be paid to the sustainability of the limit-up and the profit-taking pressure of retail investors.

The direct catalyst for Siyuan Electric’s limit-up this time was the release of the 2025 annual performance express report. After market close on January 15, 2026, the company disclosed impressive annual performance data, with several core financial indicators achieving significant growth[2][4].

The company’s total operating revenue reached RMB 21.205 billion, a year-on-year increase of 37.18%, indicating rapid business scale expansion; attributable net profit reached RMB 3.163 billion, a substantial year-on-year increase of 54.35%, with net profit growth significantly outpacing revenue growth, reflecting improved profitability driven by economies of scale and product structure optimization. Earnings per share stood at RMB 4.06, a year-on-year increase of 22.38%; return on equity (ROE) climbed to 29.58%, a year-on-year increase of 57.45%, hitting a new high in recent years. Notably, the company’s net operating cash flow reached RMB 2.228 billion, a year-on-year increase of 9.54%, demonstrating high profit quality[4].

Market rumors suggest that State Grid is expected to invest another RMB 4 trillion in power grid construction[3], which directly ignited investment enthusiasm in the power grid equipment sector. UHV concept stocks rose 3.46% on the day, ubiquitous power internet of things concept stocks rose 2.98%, and smart grid concept stocks rose 2.71%, showing obvious sector linkage effects. As a leading enterprise in the power grid equipment industry, Siyuan Electric covers multiple segments including UHV, smart grid, and ubiquitous power internet of things, directly benefiting from this policy expectation.

From the perspective of capital flows, market funds showed a clear differentiation pattern on the limit-up day[0][1]. Main capital recorded a net inflow of RMB 120 million, accounting for 6.09% of total turnover, indicating active allocation attitudes of institutional investors towards the company’s stock. Hot money recorded a net inflow of RMB 25.3156 million, accounting for 1.28% of turnover, forming a situation where institutions and hot money jointly went long. However, retail capital recorded a net outflow of RMB 146 million, accounting for 7.37% of turnover, reflecting that some investors chose to take profits after the limit-up.

This capital structure usually indicates that the market is optimistic about the company’s medium- to long-term value, but in the short term, it may face the test of retail selling pressure. If the limit-up remains firm and main capital continues to flow in, the short-term upward momentum is expected to continue; if main capital turns to outflow after the board opens, attention should be paid to the risk of a pullback.

On the day, the power grid equipment sector performed strongly as a whole, with multiple stocks in the sector hitting limit-ups, including Senyuan Electric (002358) and Guangdian Electric (601616)[3]. The overall rally of the sector provided a favorable market environment for Siyuan Electric, demonstrating obvious industry beta attributes.

From the perspective of market sentiment, the current power grid equipment sector is in a policy-driven main uptrend. State Grid’s trillion-yuan investment expectation has injected a shot in the arm for the industry, while Siyuan Electric’s excellent performance express report provides fundamental support for the individual stock. This combination of “macro policy + micro performance” dual positives can usually attract more attention from off-market funds, forming a positive cycle.

From the financial data, Siyuan Electric’s 2025 performance growth was not accidental, but the result of the combined effect of the boom cycle of the power grid equipment industry and the improvement of the company’s own competitiveness[2][4]. The 37.18% revenue growth benefited from the release of orders driven by accelerated power grid investment; the net profit growth rate (54.35%) significantly outpaced the revenue growth rate, indicating that the company’s product structure has been optimized and the proportion of high-margin products has increased. If State Grid’s RMB 4 trillion investment plan is implemented, the company, as a leading enterprise in the segment, is expected to continue to benefit.

However, investors need to pay attention to several potential variables: first, the specific implementation pace and timetable of power grid investment are uncertain; second, the industry competition pattern may change with the increase of new entrants; third, fluctuations in raw material prices such as copper and steel may have a potential impact on gross profit margin[1].

The current capital structure shows that institutional capital is actively buying while retail investors are selling. This pattern of “main force in, retail out” may lead to two trends in the short term[0]: if main capital can continue to hold positions, it will help stabilize the limit-up, and the stock price is expected to rise by inertia; if retail selling pressure continues to expand, it may cause excessive consumption of main capital, affecting the subsequent upward momentum.

From historical experience, for individual stocks that hit limit-ups due to better-than-expected performance, if they can continue to rise with volume on the second day, the short- to medium-term upward trend is usually established; if they pull back after opening the board with volume, they may enter a consolidation phase.

Siyuan Electric’s current market value of approximately RMB 132 billion corresponds to 2025 net profit of RMB 3.163 billion, with a static price-to-earnings (PE) ratio of approximately 41 times[0]. Considering the company’s 54.35% net profit growth rate and 29.58% ROE, the valuation level is in a reasonable range, but it has partially reflected the market’s expectations for the company’s future growth. If the detailed rules of the power grid investment policy are implemented or the company wins large orders, there is room for further valuation improvement; if the policy falls short of expectations, attention should be paid to the risk of valuation pullback.

First, attention should be paid to the quality of the limit-up board. If there are too many board openings and insufficient closing orders, the probability of a lower opening on the next day is high. Second, after the release of the performance express report, the stock may face short-term profit-taking pressure due to “good news being fully priced in”, and the continuous outflow of retail capital requires attention[0]. In addition, the risk of chasing highs is high, and investors may get trapped if the stock opens lower on the next day.

State Grid’s RMB 4 trillion investment plan has not been officially confirmed, and there is a risk that the policy may not be implemented as expected[1]. Fluctuations in raw material costs (such as copper and steel) may affect the company’s gross profit margin. Intensified competition in the power grid equipment industry may also compress profit margins.

Lie in the market revaluation effect brought by better-than-expected performance. If the limit-up is successful and trading volume remains active, the stock price is expected to challenge the RMB 180-190 range.

Come from the continuous driving effect of State Grid’s investment plan on the company’s business. Siyuan Electric has layouts in UHV, smart grid, and ubiquitous power internet of things, and is expected to fully benefit from the construction of a new power system[3].

Lie in the demand for power grid transformation and upgrading driven by the growth of new energy consumption demand. As the proportion of new energy power generation increases, the demand for power grid equipment renewal and replacement will continue to be released, providing a stable business growth foundation for the company.

The 1-3 trading days after the current limit-up are a key observation period, with focus on: whether the limit-up remains firm, whether trading volume can be maintained, and changes in main capital flows. If the strong pattern is maintained, the upward trend is established; if the board opens with volume and capital flows out significantly, expectations should be adjusted in a timely manner.

Siyuan Electric (002028) hit the limit-up today, driven jointly by its better-than-expected 2025 performance and the expectation of State Grid’s trillion-yuan investment. In 2025, the company achieved attributable net profit of RMB 3.163 billion, a year-on-year increase of 54.35%, with significantly improved profitability and ROE reaching 29.58%[2][4]. Main capital recorded a net inflow of RMB 120 million, indicating institutional recognition[0]. The power grid equipment sector rose across the board on the day, with UHV, ubiquitous power internet of things, and smart grid concept stocks all performing actively[1][3].

In the short term, attention should be paid to the sustainability of the limit-up and changes in capital flows; in the medium term, the company will benefit from accelerated power grid investment and growth in new energy consumption demand. Investors should avoid blindly chasing highs, and layout on pullbacks should be combined with personal risk preferences and position management.

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: This report is compiled and analyzed based on public information and does not constitute investment advice. The stock market is risky, and investment requires caution.