Analysis of Hanlan Co., Ltd. (002498) Consecutive Limit-Ups: Valuation Recovery Driven by the 4 Trillion Yuan Power Grid Equipment Investment Policy

This analysis is based on market data as of January 20, 2026[0] and multiple public reports[1][2][3]. Hanlan Co., Ltd. (002498.SZ) hit its first limit-up on January 16, 2026, closing at 4.36 yuan; it achieved a second consecutive limit-up on January 19, closing at 4.80 yuan, with a gain of 10.09%; it continued to hit a limit-up on January 20, entering the day’s limit-up pool. The company’s main businesses include power cables, special cables, submarine cables and other product series, which are widely used in key national economic sectors such as power, petroleum, chemical industry, transportation, and communications[6][8].

On January 15, 2026, State Grid released a major announcement, stating that its fixed asset investment is expected to reach

during the 15th Five-Year Plan period, representing a compared with the investment in the 14th Five-Year Plan, with an average annual investment of approximately 800 billion yuan, mainly used for the construction of a new power system[1][2][3]. This policy catalyst directly ignited enthusiasm in the power grid equipment sector, and Hanlan Co., Ltd., as a leader in the wire and cable industry, has become the focus of capital pursuit.

The policy focuses on areas including ultra-high voltage transmission projects, smart distribution network transformation, and transmission from the ‘Shagehuang’ clean energy bases, etc. The National Energy Administration also clarified that it will approve 5 AC and 7 DC ultra-high voltage projects in 2026[3], further defining the investment direction. In 2025, the whole society’s electricity consumption exceeded the 10 trillion kilowatt-hour mark for the first time[3], highlighting the urgency of power infrastructure construction.

The fundamentals of the power grid equipment industry show a pattern of multi-point support. From January to November 2025, the export values of China’s transformers, high-voltage switches, and wire and cables increased by 35.3%, 29.4%, and 22.9% year-on-year respectively[4], indicating synchronized growth in domestic and foreign demand. The budget for smart distribution network transformation increased by 32% year-on-year, and the power grid equipment ETF saw a net capital inflow of over 4 billion yuan for 7 consecutive days, with a half-hour trading volume exceeding 1.1 billion yuan, hitting a record high[3].

From a technical perspective, Hanlan Co., Ltd. exhibits the following characteristics: its stock price

, being in an extremely deep discount state with significant valuation recovery potential[5]. Its dynamic price-to-earnings ratio is approximately 25 times, which is still at a relatively low level in the power grid equipment sector[6]. The company’s stock price broke out after consolidating for more than a month, and continued to hit a limit-up after reaching a new high, which is regarded as a technical signal that the washing phase has ended and the third-wave main uptrend is highly likely[6].

Time Point	Closing Price	Price Change	Trading Volume
Jan 16	4.36 yuan	+10.10%	921,500 lots
Jan 19	4.80 yuan	+10.09%	—

Capital flow shows a clear pattern of

. The net inflow of 128 million yuan from institutional capital demonstrates institutions’ confidence in the market outlook; however, hot money recorded a net outflow of 58.28 million yuan, and retail investors recorded a net outflow of 69.87 million yuan[7], reflecting short-term capital choosing to take profits. Institutions net sold 1.7 million yuan in block trades[7], which deserves attention.

The power grid equipment sector has become one of the strongest main themes in the current market. On January 19, the power grid equipment theme index rose strongly by 5.98%[4], with a net inflow of 6.472 billion yuan for the single sector, ranking first in the entire market[3]. Northbound capital recorded net inflows for the 7th consecutive day, with a single-day net purchase of 6.845 billion yuan, focusing on increasing positions in the power grid equipment sector[3]. A total of 103 stocks hit limit-ups and 30 hit limit-downs in the overall market, with profit-making effects concentrated in power grid-related tracks.

Hanlan Co., Ltd. can be temporarily regarded as a leading target in the sector[6], and its consecutive limit-ups have formed a positive feedback stimulus to sector sentiment. The power grid equipment ETF has seen a net capital inflow of over 4 billion yuan for 7 consecutive days[3], indicating that institutional capital continues to increase allocation to this track.

The analysis reveals several noteworthy risk factors:

: After three consecutive limit-ups, the cumulative gain is significant, and technical indicators may enter an overbought zone. Investors should note that the current entry cost is relatively high, and caution is needed when chasing the rally.

: Although institutional capital is actively buying, profit-taking by hot money and retail investors indicates market divergence on short-term trends. Institutions net sold 1.7 million yuan in block trades[7], a signal that deserves attention.

: The power grid equipment sector has seen significant overall gains; if the sector pulls back, Hanlan Co., Ltd. will be affected. The risk of limit-up breakdown cannot be ignored in the current environment.

: In the first three quarters of 2025, the company achieved revenue of 7.176 billion yuan and net profit attributable to parent company shareholders of 474 million yuan[8]. Its business covers over 100 product series and tens of thousands of specifications including power cables, special cables, and submarine cables, with the ability to provide comprehensive supporting services for key domestic and foreign projects[6].

: The first support level is 4.50-4.60 yuan (near the 5-day moving average), and the second support level is 4.30-4.36 yuan (previous high and dense trading area).

: The first resistance level is the integer threshold of 5.00 yuan, and the second resistance level is 5.20-5.30 yuan (historical pressure zone).

Scenario	Probability	Trigger Condition	Possible Trend
Continued Strength	~40%	The power grid equipment sector continues to rally, with sustained net inflow of institutional capital	Challenges the 5.00 yuan integer threshold
Consolidation	~35%	Short-term profit-taking, stabilization after digesting floating chips	Suitable for bargain hunting
Rally Followed by Pullback	~25%	Overall sector pullback, adjustment triggered by excessive short-term gains	Need to pay attention to stop-loss discipline

The core logic behind Hanlan Co., Ltd.'s current round of limit-ups is

. State Grid’s 4 trillion yuan investment plan brings deterministic growth space to the power grid equipment industry, and the company, as a leader in the sub-sector, is expected to fully benefit. Technically, the company is in an extremely undervalued state with significant valuation recovery potential.

However, investors should note that: short-term risks have accumulated after consecutive limit-ups, capital divergence exists, and the sector may face adjustments. It is recommended that investors adopt different strategies based on their risk preferences: aggressive investors can participate with light positions when the price pulls back to around the 5-day moving average; conservative investors should wait for confirmation of a breakout and pullback before entering; risk-seeking investors may consider chasing the limit-up if the stock continues to hit a limit-up today, but must set a stop-loss.

: The analysis reveals that excessive short-term gains may trigger a technical pullback, and similar situations in history have resulted in short-term adjustments. Investors should pay attention to changes in trading volume and sector sentiment, and set reasonable stop-loss levels to control risks.