In-depth Investment Analysis Report on the Smart Grid Equipment Sector

I have collected sufficient data, and now I will generate a complete investment analysis report on the smart grid equipment sector for you.

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In early 2026, the smart grid equipment sector showed a strong explosive momentum. According to the latest market data [1], the power grid equipment sector has achieved a “nine consecutive gains” trend, with over 90% of individual stocks rising. In terms of gain rankings,

topped the list with a 59.50% interval gain, while 6 individual stocks including , , and all recorded gains exceeding 30% [2].

This week (mid-January 2026), multiple individual stocks in the sector performed prominently: Sanbian Technology and Yineng Power both rose over 30%, Ankao Smart Electric ranked third with a 29.63% gain, and 17 individual stocks including XD Electric, Changlan Technology, Wansheng Smart, TBEA, and New Scenery all rose by more than 10% [2]. As of 10:07 on January 19, the Wind UHV, Smart Grid, and Virtual Power Plant concept indices rose by more than 6.8%, 5%, and 3.7% respectively [3].

Capital flow data shows high attention from institutional investors to this sector. A total of 5 power grid equipment stocks saw net margin purchases exceeding 100 million yuan this week [2]:

Stock Code	Stock Name	Net Margin Purchase (100 Million Yuan)
600089.SS	TBEA	10.66
600406.SS	NARI Technology	2.00+
601877.SS	Chint Electric	2.00+
000400.SZ	XJ Electric	1.80
600445.SH	Jinpan Technology	1.53

As the only ETF product in the market tracking the CSI Power Grid Equipment Theme Index,

has seen net capital inflows for 5 consecutive trading days, totaling 1.921 billion yuan [4]. The ETF has recorded net capital inflows of over 2.439 billion yuan in the past 5 days, over 3.32 billion yuan in the past 20 days, with a latest scale of 6.916 billion yuan, and its scale has grown by over 129.8% in the past month [1][5].

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According to the 15th Five-Year Plan investment plan disclosed by State Grid Corporation of China,

, representing a 40% increase compared to the 14th Five-Year Plan period [1][6]. The market expects that the investment scale of China Southern Power Grid during the 15th Five-Year Plan period will reach around 1 trillion yuan, making China’s annual grid investment approximately 1 trillion yuan.

2026 Specific Investment Forecasts:

• State Grid investment is expected to reach 700 billion yuan, a year-on-year increase of 7.6%
• China Southern Power Grid investment is expected to reach 189 billion yuan, a year-on-year increase of 8.0% [7]

The Ministry of Industry and Information Technology and four other departments jointly issued the Guidelines for the Construction and Application of Industrial Green Microgrids (2026–2030) [4][8], which clearly guides industrial enterprises and parks to promote the construction of green microgrids, expand the application of green power, and drive the industry to upgrade towards energy conservation and carbon reduction.

Goldman Sachs predicts that the global investment scale in digital infrastructure and energy systems driven by AI will reach 5 trillion US dollars in the next 10 years [5]. China’s power equipment exports have performed impressively: from January to November 2025, exports of key power equipment reached 71.5 billion US dollars, a year-on-year increase of 20% [5]. Breakdown as follows:

• Transformer exports increased by 35% year-on-year
• Winding wire exports increased by 24% year-on-year
• Insulator exports increased by 45% year-on-year
• Switchgear exports increased by 29% year-on-year

80% of the U.S. power transformers rely on imports, and a 30% supply gap is expected in 2025, providing huge overseas market opportunities for China’s power grid equipment enterprises [5].

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• Total Market Capitalization: 153.12 billion yuan
• Latest Closing Price: 30.50 yuan
• Price-to-Earnings Ratio (PE): 28.77x
• Price-to-Book Ratio (PB): 2.23x

1. High Certainty of Performance Growth
   : Institutional forecasts predict significant net profit growth in 2026 [2]
2. Highest Capital Attention
   : Net margin purchase of 1.066 billion yuan this week, ranking first in the sector [2]
3. Overseas Business Breakthrough
   : Continues to expand international markets in UHV, new energy, and computing power center sectors [2]

• Current price is close to the resistance level of 31.30 yuan
• KDJ Indicator: K value 80.2, D value 75.7, in the overbought zone [9]
• MACD indicator shows a bullish pattern
• Beta coefficient 0.63, relatively low volatility compared to the broader market

Period	Gain
1 Day	+9.99%
1 Month	+39.40%
3 Months	+61.46%
6 Months	+147.97%
1 Year	+152.27% [10]

Conservative financial stance, low debt risk, stable free cash flow [11]

Short-term gains are significant; it is recommended to wait for a pullback before positioning. It has prominent medium- to long-term allocation value.

• Total Market Capitalization: 210.43 billion yuan (largest in the sector)
• Latest Closing Price: 26.20 yuan
• Price-to-Earnings Ratio (PE): 26.19x
• Price-to-Book Ratio (PB): 4.25x

1. Strongest Profitability
   : ROE of 16.21% and net profit margin of 12.55%, both ranking highest in the sector [10]
2. Healthy Financial Structure
   : Current ratio of 1.95, quick ratio of 1.54, low financial risk [10]
3. Adequate Cash Flow
   : Latest free cash flow of 9.254 billion yuan [11]
4. Optimal Technical Outlook
   : In a clear upward trend, KDJ shows a bullish signal [9]

• Trend Type: Upward Trend (to be confirmed)
• Support Level: 24.05 yuan
• Resistance Level: 26.84 yuan
• Next Target Level: 27.57 yuan [9]

Neutral financial stance, low debt risk, healthy free cash flow [11]

Most robust fundamentals and strongest profitability, suitable for long-term allocation by conservative investors.

• Total Market Capitalization: 73.61 billion yuan
• Latest Closing Price: 14.36 yuan
• Price-to-Earnings Ratio (PE): 61.04x
• Price-to-Book Ratio (PB): 3.25x

1. Leading Gains
   : 107.51% gain in 3 months, ranking among the top in the sector [10]
2. Pure UHV Concept
   : Benefits from the intensive construction of UHV DC channels [3]
3. High Capital Attention
   : Continuously sought after by margin traders

• Current price is trading within the range [10.63, 14.75]
• KDJ Indicator: K value 86.5, D value 83.6, J value 92.3, in a severely overbought state [9]
• MACD shows a bullish pattern
• Beta coefficient 0.71, with certain elasticity relative to the broader market

Period	Gain
1 Day	+10.04%
1 Month	+57.11%
3 Months	+107.51%
6 Months	+126.50% [10]

Short-term gains are excessive; pay attention to pullback risks. It will benefit from UHV construction dividends in the medium term.

• Total Market Capitalization: 6.46 billion yuan (small-cap stock)
• Latest Closing Price: 21.97 yuan
• Price-to-Earnings Ratio (PE): 78.39x
• Price-to-Book Ratio (PB): 7.42x

1. Gain Champion
   : Cumulative gain of 59.50% since 2026, ranking first in the sector [2]
2. Small Market Cap, High Elasticity
   : Suitable for participation by aggressive investors

1. Extremely High Valuation
   : PE of 78.39x and PB of 7.42x, with risks of valuation bubble [10]
2. Weak Profitability
   : ROE of only 6.85% and net profit margin of 4.28% [10]
3. Overbought Technical Outlook
   : KDJ is in the overbought zone, and RSI indicates overbought risk [9]

A high-risk, high-return variety, suitable for short-term speculation by aggressive investors; not recommended for long-term holding.

• Total Market Capitalization: 40.35 billion yuan
• Latest Closing Price: 59.24 yuan
• Price-to-Earnings Ratio (PE): 41.02x
• Price-to-Book Ratio (PB): 5.30x

1. Major Overseas Order Breakthrough
   : Successfully won an EPCI general contract for UHV submarine cables and installation for the Asian regional marine energy interconnection, with a total amount of 1.9 billion yuan [2]
2. Impressive Bidding Results
   : Recently won new orders totaling 955 million yuan from State Grid and China Southern Power Grid [2]
3. Good Profitability
   : ROE of 13.67% and net profit margin of 10.01% [12]

• Currently in a sideways consolidation phase
• Trading Range: [58.11, 60.51]
• KDJ shows a bearish pattern (K value 30.2) [9]
• MACD shows a bearish pattern

Q3 2025 performance exceeded expectations, with EPS increasing by 100% year-on-year [12]

Short-term performance is weak, but fundamentals are robust and overseas business expansion is progressing smoothly; it is recommended to accumulate on dips.

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Based on consistent forecasts from three or more institutions, power grid equipment stocks are expected to see strong performance growth in 2026 [2]:

Stock Code	Stock Name	2026 Net Profit Growth Forecast
600869.SH	Far East Holding	66%+
603051.SH	Guangxin Technology	52%
688191.SH	Zhiyang Innovation	41%
301031.SZ	Zhongrong Electric	30%+
603606.SH	Orient Cable	30%+
600445.SH	Jinpan Technology	30%+
300001.SZ	TGood	30%+

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According to the research report from CITIC Securities [6], two key directions are recommended:

1. Leading Enterprises Related to Domestic Grid Investment Prosperity
   : Targets closely related to major projects such as UHV, flexible DC, and digital intelligence
2. Enterprises Catering to Both Domestic and Overseas Demand
   : Leading enterprises that benefit from domestic major construction investment as well as demand from emerging overseas fields such as AI

Stock Code	Stock Name	Comprehensive Score	Investment Suggestion
600089.SS	TBEA	⭐⭐⭐⭐⭐	Top Leader, Buy on Pullback
600406.SS	NARI Technology	⭐⭐⭐⭐⭐	Optimal Fundamentals, Long-term Allocation
601179.SS	XD Electric	⭐⭐⭐⭐	Large Short-term Gains, Cautious on Chasing Highs
002112.SZ	Sanbian Technology	⭐⭐⭐	High-risk Speculation, Quick In and Out
603606.SS	Orient Cable	⭐⭐⭐⭐	Robust Fundamentals, Accumulate on Dips
600312.SS	Pinggao Electric	⭐⭐⭐⭐	Technical Breakthrough, Upward Trend

has the following advantages [1][5]:

• The only ETF in the market tracking the CSI Power Grid Equipment Theme Index
• 88% weight in smart grid, the highest in the market
• 65% weight in UHV, the highest in the market
• Diversified investment, avoiding single-enterprise risks
• Net inflow of over 1.9 billion yuan in 5 days, high capital attention

For investors with lower risk preference, it is recommended to participate in the sector investment through ETFs, using dollar-cost averaging or adding positions on dips.

1. Risk of Excessive Short-term Gains
   : The sector has seen large short-term gains, and some individual stocks face pullback pressure
2. Valuation Risk
   : Small-cap stocks such as Sanbian Technology are overvalued
3. Risk of Policy Underperformance
   : Grid investment progress may be affected by macroeconomic factors
4. Risk of Raw Material Price Fluctuations
   : Fluctuations in prices of raw materials such as copper and aluminum affect gross profit margins

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Stock Code	Stock Name	MACD Signal	KDJ Signal	RSI Signal	Trend Judgment
600089.SS	TBEA	Bullish	Overbought Warning	Overbought Risk	Sideways Consolidation
600406.SS	NARI Technology	Bullish	Bullish Signal	Overbought Risk	Upward Trend
601179.SS	XD Electric	Bullish	Overbought Warning	Overbought Risk	Sideways Consolidation
002112.SZ	Sanbian Technology	Bullish	Overbought Warning	Overbought Risk	Sideways Consolidation
603606.SS	Orient Cable	Bearish	Bearish Signal	Normal Range	Sideways Consolidation
600312.SS	Pinggao Electric	Bullish	Overbought Warning	Overbought Risk	Upward Trend [9]

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The smart grid equipment sector is in a period of dual positive catalysts from the 15th Five-Year Plan investment cycle and explosive overseas AI-related power demand, with the following characteristics:

1. High Policy Certainty
   : The 4 trillion yuan investment plan by State Grid provides clear growth space for the industry
2. Promising Performance Growth
   : The vast majority of power grid equipment stocks will achieve year-on-year positive growth in 2026
3. Relatively Reasonable Valuation
   : The sector’s overall PE is about 30x, which is at the historical median level
4. Continuous Capital Inflow
   : Margin traders and ETF funds continue to increase positions

• NARI Technology (600406.SS)
  : Most robust fundamentals, strongest profitability, upward trend
• TBEA (600089.SS)
  : Stable leading position, highest capital attention, high certainty of performance growth
• Orient Cable (603606.SS)
  : Overseas order breakthrough, solid fundamentals, sufficient adjustment

• Sbian Technology (002112.SZ)
  : Gain champion, high elasticity, but high risk
• XD Electric (601179.SS)
  : Benefits from UHV construction, but short-term gains are excessive

1. Conservative Investors
   : Focus on allocating
   NARI Technology
   , supplemented by
   Power Grid Equipment ETF (159326)
2. Aggressive Investors
   : Position
   TBEA
   and
   Orient Cable
   on pullbacks
3. Extremely Aggressive Investors
   : May moderately participate in short-term speculation of
   Sbian Technology
   and
   XD Electric

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[1] Surge! 4 Trillion Yuan Targets the Sector - FX168 Financial News

[2] 4 Trillion Yuan Investment Boost! Power Grid Equipment Benefits, List of High-Growth Potential Stocks Released - Eastmoney

[3] Sector Movement | UHV, Smart Grid, Virtual Power Plant-related Indices Perform Impressively - Eastmoney

[4] Policy-driven Construction of Industrial Green Microgrids, Grid Investment Faces Certain Opportunities - National Business Daily

[5] AI-driven Trillion-yuan Grid Investment, the Sector Faces Multiple Positive Catalysts - Caifuhao

[6] CITIC Securities: State Grid Investment Plan Solidifies Stable Growth Expectations for the 15th Five-Year Plan - Securities Times

[7] China Galaxy Securities: Domestic Grid Investment Exceeds 1 Trillion Yuan per Year - 9fzt

[8] Grid Investment Faces Certain Opportunities, Power Grid Equipment ETF Sees Capital Inflows - Hexun

[9] Jinling AI Technical Analysis Data [0]

[10] Jinling AI Company Profile Data [0]

[11] Jinling AI Financial Analysis Data [0]

[12] Jinling AI