Hot Stock Analysis of XD Electric (601179.SH): Completion of GE's Share Reduction Coupled with Surge in Orders

This analysis is based on multiple reports from Cailian Press[1], Securities Times[2], Shanghai Securities News[3], etc., aiming to comprehensively analyze the reasons, driving factors, and investment value of XD Electric Co., Ltd. (Stock Code: 601179.SH) for recently becoming a market hot stock. The company’s main business covers R&D, manufacturing, sales, testing, and engineering contracting of power transmission and distribution and control equipment. Its core products include full voltage range transformers, high-voltage switches (GIS, GCB), reactors, converter valves, and power capacitors, etc. It is one of the leading enterprises in China’s power transmission and distribution equipment sector[6].

According to the company’s announcement on January 14, 2026, this is the core event triggering this market hot spot[1][2]. From January 8 to 13, 2026, GE Singapore cumulatively reduced its holdings of the company’s shares by approximately 103 million shares, accounting for 2% of the total share capital, through centralized bidding and block trading. The share reduction price range was RMB 10.25 to RMB 10.67 per share, with a total reduction amount of RMB 1.072 billion[1]. After the completion of this share reduction, GE Singapore’s shareholding ratio dropped from 7.00% to 4.99%, no longer constituting a shareholder with more than 5% shareholding, and decided to terminate the original share reduction plan of no more than 3% ahead of schedule[2].

From the perspective of investment return, since GE Singapore started reducing its holdings in October 2024, it has cashed out more than RMB 3.8 billion in total[4]. Considering factors such as dividends, the investment return rate is approximately 111%[4]. The market interprets this as a positive signal—the early termination of the share reduction plan means that short-term selling pressure has been eliminated, and institutional investors’ concerns about the subsequent trend have been alleviated.

On January 15, 2026, XD Electric was listed on Eastmoney’s Dragon and Tiger List due to a daily price amplitude of 15%[5]. Its performance on that day is as follows: closing price of RMB 13.43, a daily increase of 5.0%; turnover rate of 10.12%, significantly higher than the usual level; trading volume of 51.893 million lots; transaction amount of RMB 6.589 billion[5]. Being listed on the Dragon and Tiger List usually means that the stock has received strong attention from short-term market funds, and it is easy to attract more follow-up investors.

According to Sina Finance, XD Electric has performed strongly since 2026, and even hit the daily upper price limit on January 19 due to benefiting from the favorable news of the “4 Trillion” investment[6]. This growth rate is outstanding in the overall market environment, which naturally attracted a lot of investor attention.

The continuous improvement of the company’s fundamentals is the underlying factor supporting the share price increase. According to comprehensive reports from Eastmoney and Sina Finance[7][8], in 2025, the company secured RMB 8.063 billion in orders in the State Grid’s power transmission and transformation equipment bidding (6 batches), with a market share of 8.77%, ranking first in the industry; in November of the same year, it won another RMB 2.98 billion in UHV equipment projects from the State Grid; in December, it won the bid for the UHV DC transmission project of China Southern Power Grid with an amount of RMB 1.005 billion[7][8]. The cumulative winning bid amount for the whole year is approximately RMB 12 billion, providing a solid guarantee for future performance growth.

Judging from recent market data[0][5], the share price has shown a trend of rising sharply then pulling back:

Date	Closing Price	Price Change	Trading Volume	Remarks
2026-01-15	RMB 13.43	+5.0%	51.893 million lots	Listed on Dragon and Tiger List
2026-01-16	RMB 13.05	-2.83%	58.233 million lots	Profit-taking
2026-01-19	Approximately RMB 13.25	+1.53%	-	Rebounded driven by favorable news

According to data from Investing.com[9], the 52-week price range is RMB 5.91 to RMB 14.54, and the current price of approximately RMB 13.05 is at a relatively high level. The upper resistance level is RMB 14.54 (the high point on January 16), and an effective breakthrough may open up upward space; the lower support level is RMB 13.00 (the low point on January 16), and a break below may trigger further pullback.

It is worth noting that the capital flow data on January 15 shows that the net outflow of main capital was RMB 322 million, accounting for -4.88% of the transaction amount; while the net inflow of hot money was RMB 73.4103 million, accounting for +1.11%; and the net inflow of retail investors was RMB 248 million, accounting for +3.77%[5]. This indicates that during the share price rise, main capital chose to take profits, while retail investors and hot money had a strong willingness to take over. This capital game pattern may put certain pressure on the short-term share price.

From the perspective of fundamentals, the company has multiple medium and long-term favorable supports. First, in the first three quarters of 2025, it achieved operating revenue of RMB 17 billion, a year-on-year increase of 11.54%, and net profit of RMB 939 million, a year-on-year increase of 19.29%[6], maintaining a double-digit growth trend in performance. Second, as one of the few domestic enterprises with the production capacity of 1100kV UHV GIS, the company has obvious technological leading advantages and competitive barriers in the UHV field.

From the perspective of industry prosperity, institutions predict that UHV construction will enter a peak period from 2026 to 2030, with the annual construction volume expected to maintain the level of “4 DC and 2 AC”[6]. Coupled with the policy orientation of accelerating UHV construction driven by the demand for new energy consumption, the power transmission and distribution equipment industry where the company is located will continue to benefit from this structural growth opportunity.

However, investors also need to pay attention to the following risks: the recent continuous net outflow of main capital[5] may put periodic pressure on the share price; the current share price is close to the 52-week high[9], and the valuation is at a historically high level, which needs strong performance growth to support; in addition, although GE has terminated the share reduction plan ahead of schedule, the cumulative scale of share reduction in the early stage is relatively large[4], and it is still necessary to observe whether there are subsequent impacts.

XD Electric’s recent rise as a hot stock is the result of multiple factors overlapping. From the perspective of event-driven factors, GE Singapore reduced its shareholding to below 5% and terminated the share reduction plan ahead of schedule[1][2], eliminating concerns about short-term selling pressure; being listed on the Dragon and Tiger List[5] attracted the attention of short-term funds; and the peak period of UHV construction coupled with the demand for new energy consumption[6] provided industry-level favorable support. From the perspective of fundamentals, the order volume exceeding RMB 12 billion in 2025[7][8] has laid a solid foundation for future performance growth.

In the short term, the cumulative share price increase since 2026 has been relatively large[6], and there is certain pullback pressure; in the medium term, as a leading enterprise in the power transmission and distribution equipment sector, the company is expected to continue to benefit from UHV construction and new energy transformation; in the long term, the industry development trend is clear, the company has obvious technological advantages, and its fundamentals have strong sustainability.

: Continuous outflow of main capital, valuation pressure, selling pressure from upper locked-up shares, risks of industry policy changes.