TBEA Co., Ltd. (600089)

Equity Research Report　|　Industry: Electrical Machinery and Equipment Manufacturing　|　Report date: September 13, 2026　|　As of the September 11, 2026 close; market data is primarily based on Dabanke and CFi. Some Investing pages show RMB 18.76, which differs from the primary data sources; this structured data uses RMB 18.72.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

TBEA recorded operating revenue of RMB 56.555 billion in the first half of 2026, up 16.97% year on year, while net profit attributable to the parent declined 19.84% year on year to RMB 2.552 billion, and recurring net profit attributable to the parent declined 4.09%. During the same period, the company recognized total credit and asset impairment provisions of approximately RMB 890.1531 million, mainly related to changes in polysilicon and photovoltaic-material prices, the settlement of certain power-station projects, and lengthy review cycles for national subsidies. The company currently displays a profile of “revenue growth, earnings pressure, and improving cash flow,” with net cash generated from operating activities of approximately RMB 6.22 billion, up 34.14% year on year.

The company has a relatively diversified business portfolio. High-end power-transmission and transformation equipment is currently the core segment with relatively strong barriers in technology, qualifications, and engineering track record. In 2025, domestic power-transmission and transformation industry orders totaled RMB 56.2 billion, international product orders totaled USD 2.0 billion, and the value of overseas projects under execution or pending fulfillment exceeded USD 5.0 billion. However, polysilicon, renewable-energy engineering, coal, and certain aluminum-material businesses remain affected by supply and demand, pricing, and regional markets. In 2025, the company recorded operating revenue of approximately RMB 97.227 billion, down 0.61% year on year, and net profit attributable to the parent of RMB 5.954 billion, up 43.69% year on year. Overall gross margin was approximately 18.80%. Earnings improvement mainly came from power-transmission and transformation equipment, power generation, and gold businesses, which partially offset pressure from polysilicon and coal.

The earnings outlook depends on revenue recognition and margins for power-transmission and transformation orders and overseas EPC projects, as well as the pace of recovery in polysilicon, coal, thermal power, and renewable-energy power-station businesses. The average institutional forecast for 2026 net profit attributable to the parent is approximately RMB 7.300 billion, but the forecast range is RMB 5.997–8.048 billion, indicating substantial divergence and suggesting that the market still has limited confidence in the recovery of cyclical businesses.

As of September 11, 2026, the company’s share price was RMB 18.72, below its MA5, MA10, and MA20. MACD was below the zero axis, while RSI was approximately 40.4–42.8. Technically, the stock was in a weak short- to medium-term structure, close to the lower Bollinger Band but without a confirmed reversal. RMB 19.00–19.40 is the moving-average resistance zone, while RMB 18.40–18.70 is the recent support area. Future price performance should continue to be assessed together with trading volume and fund flows.

2. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Portfolio

• High-end power-transmission and transformation equipment manufacturing: including transformers and reactors, bushings, instrument transformers, capacitors, switchgear, GIS, relay-protection and automation equipment, wires and cables and related accessories, as well as design, procurement, construction, installation, commissioning, operation and maintenance, and turnkey EPC contracting for international power-transmission and transformation projects.
• Renewable energy: including high-purity polysilicon, inverters, flexible-DC converter valves, SVGs, PCS, and energy-storage-related products, as well as the design, construction, commissioning, operation and maintenance, and operation of wind and photovoltaic power stations.
• Energy: including coal mining and sales, thermal power generation, and urban heating and gas supply. At the end of 2025, approved coal production capacity was 74.00 million tonnes per year, while the installed capacity of operating power plants was 4,040MW.
• New materials: primarily developed by subsidiaries including Xinjiang Joinworld, covering high-purity aluminum, electronic aluminum foil, etched foil, formed foil, aluminum and alloy products, and other products, forming an industrial chain of “high-purity aluminum–electronic aluminum foil–electrode foil.”
• Other businesses: The 2025 annual report’s product breakdown also included gold and logistics trading. Gold revenue was RMB 2.469 billion, with a gross margin of 57.23%; logistics-trading revenue was RMB 553.00 million, with a gross margin of 10.51%.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

TBEA focuses on high-end power-transmission and transformation equipment manufacturing while also developing polysilicon, wind and photovoltaic power stations, coal-fired power, and aluminum-based electronic new materials. It has formed an integrated value chain combining “high-end equipment manufacturing + cyclical energy and materials + renewable-energy system integration.”

• The power-transmission and transformation business primarily purchases copper, aluminum, steel, electrical steel, transformer oil, insulation materials, and electronic components. In 2025, material costs accounted for 87.40% of product costs for electrical equipment and 92.96% of product costs for wires and cables. Prices of bulk commodities such as copper, aluminum, and electrical steel have a significant impact on gross margins.
• The power-transmission and transformation business has advantages in UHV technology, brand, qualifications, scale, and project execution, but lacks fundamental pricing power over copper, aluminum, electrical steel, and other raw materials. Increases in raw-material prices cannot be fully passed on to downstream customers. The wire-and-cable business is closer to a “processing fee + project premium” model.
• Upstream inputs for the renewable-energy business include industrial silicon, chlorosilanes, energy, electricity, equipment, and engineering materials. Polysilicon prices are highly affected by industry supply and demand and spot prices. The gross margin of renewable-energy products and engineering was only 0.59% in 2025, making the company broadly a price taker in this segment.
• Coal costs mainly include stripping, extraction, transportation, fuel and power, and equipment depreciation. The company has substantial coal reserves and open-pit mining conditions, which help create cost advantages, but coal prices remain affected by regional supply and demand, rail capacity, transportation costs, and market coal prices.
• The new-materials business primarily purchases common aluminum, high-purity-aluminum-related raw materials, alumina, and energy. In 2025, materials accounted for 84.40% of the costs of aluminum electronic new materials, aluminum, and alloy products. Profitability is jointly determined by raw-material prices and product selling prices.
• Procurement from the five largest suppliers in 2025 totaled RMB 22.200 billion, accounting for 22.15% of total annual procurement. No single supplier accounted for more than 50%. The minutes did not disclose more detailed supplier names or segment-level procurement concentration.
• Customers for power-transmission and transformation products include State Grid, China Southern Power Grid, power-generation companies, local power companies, industrial customers, overseas power companies, and EPC project owners. The market has project-based and centralized-procurement characteristics. Customer quality is relatively high, but bargaining power is strong. Order delivery, qualification certification, product reliability, and payment terms all affect profitability.
• Domestic power-transmission and transformation industry orders totaled RMB 56.2 billion in 2025, up 14.47% year on year. International product orders totaled USD 2.0 billion, up approximately 68%. As of December 31, 2025, the value of international turnkey projects under execution, not yet recognized as revenue, or pending fulfillment exceeded USD 5.0 billion. However, overseas operations entail foreign-exchange, geopolitical, and engineering-execution risks.
• Downstream customers for the renewable-energy business include photovoltaic-module and cell manufacturers, wind and photovoltaic power-station owners, grid companies, and large energy-investment enterprises. Polysilicon customers are concentrated in the photovoltaic value chain, where product pricing is highly market-oriented and downstream bargaining power is weaker than in the UHV-equipment business.
• Downstream customers for coal include thermal power plants, industrial enterprises, and regional traders. The company’s own thermal power plants and captive power plants can consume part of its coal output, creating a degree of internal synergy. Sales outside Xinjiang, however, are constrained by rail capacity and transportation costs and have strong regional characteristics.
• Downstream customers for new materials are primarily aluminum electrolytic capacitor manufacturers, electronic-component companies, home-appliance companies, automobile companies, transport companies, and electronic-information enterprises. Customers have high requirements for the quality, purity, and consistency of high-purity aluminum and electronic aluminum foil, but the industry remains highly price competitive.
• Sales to the five largest customers in 2025 totaled RMB 30.885 billion, accounting for 31.77% of annual sales. No single customer accounted for more than 50%, and the company did not disclose any serious dependence on a small number of customers. This is based on the 2025 annual report; the minutes did not provide earlier-year data for cross-checking. The latest annual report should prevail.
• High-end power-transmission equipment relies on technology, qualifications, type testing, and engineering track record to form barriers, but centralized-procurement customers such as State Grid and China Southern Power Grid have strong bargaining power. Polysilicon, coal, and certain aluminum materials are more affected by market benchmark prices and regional supply and demand.
• As of December 31, 2025, accounts receivable were approximately RMB 21.005 billion, equivalent to approximately 21.6% of 2025 operating revenue, with bad-debt provisions of approximately RMB 1.490 billion. According to China Chengxin’s rating report, accounts-receivable turnover declined from approximately 6.60 times in 2023 to 5.91 times in 2024 and approximately 5.34 times in 2025, corresponding to turnover days of approximately 55, 62, and 67 days, respectively. Calculation bases may differ among data sources; the audited annual-report notes should be treated as definitive. Large receivables and slower turnover indicate that power-transmission equipment, EPC engineering, and power-station construction occupy significant working capital. Technological advantages do not equate to strong cash-collection bargaining power.
• In 2025, sales to the five largest customers accounted for 31.77%, while purchases from the five largest suppliers accounted for 22.15%. Neither indicated serious dependence on a single customer or supplier. The minutes did not disclose all customer and supplier names, single-customer concentration, or concentration by segment, so differences among business segments cannot be assessed further.

TBEA occupies an integrated value-chain position combining “high-end power-transmission and transformation equipment manufacturing + cyclical energy and materials + renewable-energy system integration.” UHV transformers, flexible DC, and system integration occupy relatively high-value-added technology and service segments. Wires and cables and ordinary aluminum-alloy products are midstream processing businesses with high material costs and relatively limited margins. Polysilicon and coal are resource and cyclical commodities, and the company lacks fundamental control over market prices. The key to further improving margins is to raise the contribution of high-value-added businesses such as UHV, flexible DC, overseas EPC, energy storage, and high-end aluminum-based materials, while reducing the drag from polysilicon and coal price cycles.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formally disclosed financial report is the 2026 interim report, disclosed on August 22, 2026; the financial data is unaudited. Recurring net profit attributable to the parent in the first half of 2026 was RMB 2.673 billion, down 4.09% year on year; total profit was RMB 3.961 billion, down 10.43%. Recurring net profit attributable to the parent in 2025 was RMB 4.554 billion, up 15.64%. Some platforms use total operating revenue, reporting approximately RMB 56.585 billion for the first half of 2026 and approximately RMB 97.318 billion for 2025, which differs from the company’s operating-revenue definition. Formal citations should use the operating revenue reported in the company’s financial statements.

The first half of 2026 showed revenue growth, relatively stable recurring profit, and declining net profit attributable to the parent. The decline in net profit attributable to the parent was significantly greater than the decline in recurring profit. Fair-value changes in investment targets, asset impairments, and pressure on polysilicon prices weighed on earnings. As of June 30, 2026, the company had recognized a total of RMB 890.1531 million in impairment provisions for relevant assets. Full-year institutional forecasts require significant earnings recovery in the second half, and their realization depends on improvements in polysilicon, coal, thermal power, investment income, and renewable-energy businesses.

3.2 Earnings Forecasts

As of September 12, 2026, the THS F10 consensus showed that 10 institutions had issued forecasts for TBEA’s 2026 results during the previous six months. The figures above represent the institutional average and forecast range. Representative forecasts include: Huatai Securities on August 25, 2026, forecasting 2026–2028 net profit attributable to the parent of RMB 5.997/7.297/8.814 billion and EPS of RMB 1.19/1.44/1.74; Everbright Securities on August 24, 2026, forecasting RMB 7.602/9.052/10.568 billion and EPS of RMB 1.50/1.79/2.09; and Central China Securities on May 8, 2026, forecasting RMB 7.141/9.619/12.536 billion and EPS of RMB 1.41/1.90/2.48. Shenwan Hongyuan forecast 2026–2028 net profit attributable to the parent of RMB 6.036/8.507/15.493 billion on August 23, 2026. Its 2028 forecast is significantly above the market average and represents an optimistic scenario. Differences in forecasts mainly reflect differing views on the pace of recovery in renewable energy, polysilicon, coal, and thermal power.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, the company’s share price was RMB 18.76. When the share price was approximately RMB 19.01, Lixinger displayed a P/E of approximately 18.05x, a P/B of approximately 1.36x, and a total market capitalization of approximately RMB 96.054 billion. Based on the RMB 18.76 closing price, static or TTM P/E was approximately 17.8–18.1x, P/B was approximately 1.3x, and total market capitalization was approximately RMB 95.0 billion. Based on the EPS consensus from THS institutions, RMB 18.76 corresponds to forward P/E multiples of approximately 13.0/10.3/7.9x for 2026/2027/2028. These calculations do not imply that earnings will necessarily be achieved. If the 2026–2028 earnings forecasts are met, the company’s valuation appears relatively reasonable or somewhat low, but this depends heavily on power-transmission and transformation growth, overseas order execution, and earnings recovery in polysilicon, coal, and thermal power. P/B differs materially among platforms. CFi reports approximately 0.88x, but this does not fully reconcile with calculations based on the company’s attributable net assets and total shares at the end of June 2026 and should not be relied upon in isolation. The latest target price of RMB 23.74 comes from a single institution, Huatai Securities, and should not be viewed as a market-wide consensus target. Key uncertainties include the unaudited 2026 interim report, polysilicon prices and inventory-impairment risk, the year-on-year decline in first-half net profit attributable to the parent despite full-year forecasts requiring a significant second-half recovery, and the wide range of institutional forecasts.

4. Recent News and Announcements

4.1 Change in Use of Repurchased Shares and Proposed Cancellation and Capital Reduction

TBEA plans to change the use of 32,543,837 previously repurchased but unused shares from an employee share-ownership plan or equity incentive plan to cancellation and registered-capital reduction. After cancellation, total shares are expected to decline from 5,052,792,571 to 5,020,248,734, with registered capital expected to fall correspondingly to RMB 5,020,248,734. The shares to be canceled represent approximately 0.64% of total shares before cancellation. The proposal was approved at the third extraordinary general meeting of shareholders in 2026 held on August 24, 2026. The company disclosed a creditor-notification announcement on August 25, with the creditor-claim period running from August 25, 2026 to October 8, 2026. As of September 12, 2026, the matter remained in the creditor-notification and subsequent-processing stage, and cancellation of the shares could not yet be confirmed as completed.

4.2 Extension of Validity of the Convertible-Bond Shareholders’ Resolution; Issuance Not Completed

The company plans to issue convertible bonds to unspecified investors. The validity period of the shareholders’ resolution and the relevant authorization period were extended by 12 months, from September 2, 2026 to September 2, 2027. The original issuance plan and authorization remain unchanged. The relevant matters were approved at the third extraordinary general meeting of shareholders in 2026 on August 24, 2026. In an interactive-platform response, the company stated that the convertible-bond project was currently under review by the Shanghai Stock Exchange. As of September 12, 2026, no announcement had been identified confirming registration approval, formal issuance, or a material change in issuance size.

4.3 First-Half 2026 Results: Revenue Growth but Year-on-Year Decline in Net Profit Attributable to the Parent

The company disclosed its 2026 interim report on August 22, 2026. First-half operating revenue was approximately RMB 56.555 billion, up approximately 16.97% year on year; net profit attributable to shareholders of the listed company was approximately RMB 2.552 billion, down 19.84%; and recurring net profit attributable to the parent was approximately RMB 2.673 billion, down approximately 4.09%. The company will not distribute dividends or conduct a capitalisation issue for the first half of 2026. As of September 12, 2026, no formal third-quarter earnings preannouncement, earnings flash, or explicit full-year earnings guidance had been identified.

4.4 Approximately RMB 890.1531 Million of Impairment Provisions Recognized in the First Half, Weighing on Current-Period Profit

Based on asset impairment testing as of June 30, 2026, the company recognized credit and asset impairment losses totaling RMB 890.1531 million. The data is unaudited. Credit impairment losses were approximately RMB 315 million, including approximately RMB 280 million of bad-debt losses on accounts receivable. Asset impairment losses were approximately RMB 576 million, including approximately RMB 447 million of inventory write-downs and approximately RMB 128 million of contract-asset impairment. After recognizing the impairment provisions and considering the reversal or write-off of inventory provisions, total profit before tax was reduced by approximately RMB 727 million. The company stated that the impairments were mainly related to changes in polysilicon and photovoltaic-material prices, lengthy settlement and national-subsidy review cycles for certain power-station projects, and actual generation below expectations.

4.5 First-Half Operating Cash Flow Increased Year on Year

In the first half of 2026, net cash generated from operating activities was approximately RMB 6.22 billion, up approximately 34.14% year on year, with cash flow performing better than net profit attributable to the parent. At the interim-results briefing on August 26, 2026, the company stated that fair-value changes and impairment provisions together reduced current-period profit by approximately RMB 1.287 billion. This was management’s explanation and cannot replace an analysis of earnings quality based on audited figures.

4.6 Power-Generation and Installed-Capacity Data for the Energy Business

As of the end of June 2026, the company’s total power-station installed capacity was 9,186.33MW, including 5,040.00MW of coal-fired capacity, or 54.87%; 2,644.94MW of self-operated wind capacity, or 28.79%; and 1,501.39MW of self-operated photovoltaic capacity, or 16.34%. In the first half of 2026, total power generation was 13,986,550.7 MWh and total electricity sold to the grid was 13,170,573.1 MWh. Coal-fired generation was 9,861,303.2 MWh, wind generation was 3,182,562.8 MWh, and photovoltaic generation was 942,684.7 MWh. The announcement did not provide complete segment profitability data, so energy-business profit growth cannot be directly inferred.

4.7 Shareholder Holdings and Share Pledges

As of June 30, 2026, the company had 833,474 shareholders. Xinjiang TBEA Group Co., Ltd. held 581,077,428 shares, or 11.50%; Xinjiang Honglian Venture Capital Co., Ltd. held 330,415,872 shares, or 6.54%, of which 20,800,000 shares were pledged; Hong Kong Securities Clearing Company Limited held 92,738,751 shares, or 1.84%, an increase of approximately 1.92 million shares from the end of March 2026; and the ChinaAMC CSI Grid Equipment Theme ETF held 85,351,200 shares, or 1.69%, down approximately 38.87 million shares from the previous period. Public market data as of September 11, 2026 showed approximately 20.80 million pledged shares, representing approximately 0.41% of total shares and involving Xinjiang Honglian Venture Capital Co., Ltd. Subsequent formal company announcements or China Securities Depository and Clearing Corporation data should prevail. No new concentrated buying or selling plans by the controlling shareholder, actual controller, directors, or senior executives in September 2026 had been identified.

4.8 No Major September M&A or Asset Restructuring Identified

As of September 12, 2026, no newly disclosed major acquisition, major asset restructuring, or change-of-control matter in September 2026 had been identified. In April 2026, the company disclosed an investment of approximately RMB 1.190 billion to build the capacitor and reactor project at the TBEA Xi’an High-End Intelligent Manufacturing Park. This matter was not a new September development.

4.9 No New Regulatory Penalties or Major Inquiries Identified

As of September 12, 2026, no new filing investigation, administrative penalty, disciplinary action, or major regulatory inquiry involving TBEA had been identified from the Shanghai Stock Exchange or the China Securities Regulatory Commission. The main review matter currently attracting market attention is the proposed convertible-bond issuance to unspecified investors, which remains under review by the Shanghai Stock Exchange and has not yet been completed.

4.10 Industry Policy and Follow-up Items

At the results briefing, the company stated that the government’s policy of addressing “involutionary competition” could improve the supply-demand balance in parts of the industry, including polysilicon. This is management’s assessment of the impact of industry policy and is not a commitment regarding orders or earnings. Key follow-up items include supply adjustments and price changes in polysilicon, review and settlement of national subsidies for photovoltaic power stations, grid investment and power-transmission and transformation equipment tenders, progress of the convertible-bond review, and completion of the cancellation and capital-reduction registration for repurchased shares.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, TBEA closed at RMB 18.72, below MA5, MA10, and MA20. MACD was negative, RSI was approximately 40.4–42.8, and the share price was close to the lower Bollinger Band without decisively breaking below it. Overall, the technical picture can be summarized as weak in the short to medium term and close to lower-band support, with potential for a technical rebound but no confirmed reversal. Key short-term levels include support near RMB 18.40, stronger support near RMB 18.00, moving-average resistance at RMB 19.00–19.40, and further resistance near RMB 20. A confirmed upside breakout would require trading value to remain clearly above the recent average of approximately RMB 1.077 billion.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on the closing data, historical prices, and technical indicators as of September 11, 2026. It does not constitute investment advice or a definitive forecast of future performance.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high subjective weight, approximately six-tenths; this is a heuristic weight based on current technical and fund-flow conditions, not a statistical probability): The trading range would be RMB 18.40–19.40. Conditions include support near RMB 18.40, no decisive break below the lower Bollinger Band near RMB 18.05, trading value remaining within the recent normal range of approximately RMB 800 million–1.3 billion, and no significant risk release from the sector or broader market. The stock could fluctuate repeatedly, MA5 and MA10 could continue to converge, RSI could remain neutral to weak, and MACD could continue oscillating below the zero axis.
• Weak downside move (medium subjective weight, approximately three-tenths; a heuristic judgment, not a statistical probability): The trading range would be RMB 17.90–18.40. Conditions include a decisive close below RMB 18.40, trading value materially exceeding the recent average during the break, continued net outflows from main funds, or simultaneous weakness in power equipment, power-transmission and transformation, and renewable-energy sectors. A further break below the lower Bollinger Band near RMB 18.00 could strengthen the bearish structure and lead to a test of approximately RMB 17.50 or lower, although this is not inevitable.
• Stronger rebound (low subjective weight, approximately one-tenth; a heuristic judgment, not a statistical probability): The trading range would be RMB 19.40–20.10. Conditions include a move back above MA20 near RMB 19.40 with closing confirmation for at least one or two trading days, daily trading value rising above approximately RMB 1.4 billion without merely surging and retreating, a shift from net outflows to consecutive net inflows in main funds, and simultaneous strength in grid-equipment or UHV-related sectors. Only a volume-backed breakout and stabilization near RMB 20 could shift the short-term structure from weak consolidation to rebound repair. A low-volume rebound to RMB 19.00–19.40 would be more consistent with a moving-average retracement.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, trading value over the latest five trading days was approximately RMB 904 million–1.327 billion, with an average of approximately RMB 1.077 billion. Turnover was approximately 0.93%–1.38%, averaging approximately 1.08%. On September 11, trading value was approximately RMB 1.301 billion and turnover was 1.38%. This indicates acceptable day-to-day liquidity, but relatively limited turnover. If concentrated selling pressure emerges, the short-term price may seek support quickly. As of June 30, 2026, the company had approximately 833,500 shareholders. The top 10 tradable shareholders collectively accounted for 25.10% of tradable shares, indicating that the ownership structure was not highly concentrated. The top 10 tradable shareholders included public funds, the Social Security Fund, ETFs, and Hong Kong Securities Clearing. However, the shareholder data was disclosed on August 22, 2026 and was as of June 30, 2026, more than two months before September 11. Institutional holdings may have changed during this period, so the data cannot be treated as real-time. The latest reliably verifiable main-fund details were available only through August 26, 2026, and main-fund flows from September 7 to September 11 could not be reliably verified.

A volume-confirmation signal to monitor is the following: if the share price breaks above MA20 near RMB 19.40, daily trading value rises and remains above approximately RMB 1.4 billion, and the closing price does not fall back below RMB 19, this could indicate stronger short-term fund participation and greater breakout validity. A volume-backed decline should instead be interpreted as selling-pressure release, not bullish confirmation.

④ Key Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the RMB 18.40–18.70 area can attract support; if it fails, monitor lower Bollinger Band support near RMB 18.00.
• Observe whether the share price can retake the RMB 19.00–19.40 moving-average concentration zone, and monitor secondary resistance near RMB 20.
• Observe whether trading value can remain above approximately RMB 1.4 billion when the stock breaks MA20, while the closing price remains above RMB 19.
• Observe whether main-fund data shifts from the net-outflow state as of August 26, 2026 to consecutive net inflows. These are observation points only and are not trading instructions.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share-price performance will also be affected by news, fund flows, the broader market, and other factors. Technical indicators are inherently lagging and limited. This does not guarantee future performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

TBEA operates across several industries, including power-transmission and transformation and UHV equipment, polysilicon and photovoltaics, coal and thermal power, and aluminum-based electronic new materials. Core power-transmission and transformation equipment has barriers in technology, qualifications, and engineering track record. Polysilicon is a cyclical material characterized by supply-demand imbalance after capacity expansion and intense price competition. Coal and thermal power are affected by resources, transport capacity, regional prices, and electricity-market transactions. Aluminum-based electronic new materials are affected by demand from electronics, power electronics, new-energy vehicles, and energy storage, as well as product-price competition.

6.2 Competitive Landscape

• Power-transmission and transformation and UHV equipment: UHV transformers, converter transformers, converter valves, bushings, and large reactors have relatively high technology and qualification barriers. State Grid and China Southern Power Grid tenders and major projects are important sources of orders. Wire and cable competition is more intense, material costs account for a high percentage of costs, and profitability is lower than that of high-end transformer businesses.
• Polysilicon and photovoltaics: China produced approximately 1.319 million tonnes of polysilicon in 2025. The tax-inclusive average price of N-type polysilicon fell from approximately RMB 41,500 per tonne at the beginning of 2025 to approximately RMB 34,400 per tonne at the end of June, before recovering to approximately RMB 53,900 per tonne at year-end. Core competitive factors include unit costs, energy consumption, electricity prices, N-type product quality, capacity utilization, and supply-demand management.
• Coal and thermal power: The company primarily participates in the Xinjiang Zhundong regional market. Competitive factors include resource reserves, approved capacity, coal quality, stripping ratio, rail capacity, mine-mouth and regional prices, as well as thermal-power unit efficiency and electricity-market trading capabilities.
• Aluminum-based electronic new materials: The company is positioned in the midstream to upper-midstream portion of the aluminum-materials value chain. The industry is driven by demand from consumer electronics, home appliances, new-energy vehicles, energy storage, and power electronics, while also facing strong product-price competition. Margin improvement depends on a higher proportion of high-end products such as high-purity aluminum, high-capacity electronic aluminum foil, and ultra-high-voltage formed foil.
• Major competitors listed in the company’s 2025 annual report include China Electrical Equipment Group Co., Ltd., ABB, and Siemens; Jiangsu Shangshang Cable Group, Far East Smarter Energy, Baosheng Science and Technology Innovation, and Qingdao Hanlan; Tongwei, GCL Technology; PowerChina, China Energy Engineering, and Zhejiang Chint New Energy; China Three Gorges Renewables, Concord New Energy, and Goldwind; China Energy Investment Corporation Xinjiang Mining and Xinjiang Yihua Mining; as well as Baotou Aluminum, Guangdong Dongyangguang, Nantong Haixing, and Guangdong Huafeng New Energy.

6.3 Major Competitors

Compared with specialized competitors, TBEA’s distinguishing feature is its more diversified business portfolio. Compared with the China Electrical Equipment system, ABB, and Siemens Energy, the company has localization advantages in China’s UHV supply chain, cost structure, delivery scale, and certain overseas EPC projects. Compared with Tongwei and GCL Technology, TBEA is not a single-business photovoltaic-materials company but combines polysilicon with power-transmission equipment, wind and photovoltaic power stations, coal-fired power, and new materials. However, polysilicon remains exposed to cyclical pricing. Compared with cable and aluminum-material competitors, TBEA has higher-value-added UHV equipment and system-integration businesses, while wires and cables and ordinary aluminum products are midstream processing businesses with high material costs and relatively limited margins.

7. Risk Factors

• Polysilicon and photovoltaic-material prices and supply-demand conditions are highly volatile. In the first half of 2026, the company recognized approximately RMB 447 million in inventory write-downs and approximately RMB 128 million in contract-asset impairment losses. If prices remain under pressure, inventory value, gross margins, and earnings could be affected further.
• Profitability in renewable-energy products and engineering is weak, with a gross margin of only 0.59% in 2025. Some photovoltaic power stations face lengthy national-subsidy review periods, actual generation below expectations, and delayed project settlement, which could delay revenue recognition, lead to contract-asset impairments, or result in weaker-than-expected cash collection.
• Although the power-transmission and transformation business has technology and qualification barriers, material costs account for a high proportion of costs. In 2025, materials represented 87.40% of electrical-equipment product costs and 92.96% of wire-and-cable product costs. Increases in copper, aluminum, electrical-steel, and other raw-material prices cannot be fully passed on to customers and could compress gross margins.
• Accounts receivable and turnover pressure are significant. At the end of 2025, accounts receivable were approximately RMB 21.005 billion, or approximately 21.6% of operating revenue, with bad-debt provisions of approximately RMB 1.490 billion. Turnover days rose to approximately 67 days. In the first half of 2026, the company additionally recognized approximately RMB 280 million in bad-debt losses on accounts receivable. Project collections and credit-impairment risks require continued monitoring.
• Coal, thermal power, and gold provide an earnings offset, but coal prices are affected by regional supply and demand, rail capacity, transportation costs, and market coal prices. Thermal-power profitability is also affected by electricity-market transactions and fuel costs. These businesses cannot reliably replace the earnings shortfall caused by a downturn in the renewable-energy cycle.
• The company has substantial international power-transmission product orders and overseas projects under execution, but overseas EPC projects face foreign-exchange, geopolitical, host-country policy, and engineering-execution risks. Signed orders and pending contracts do not equal realized revenue or profit.
• Net profit attributable to the parent declined 19.84% year on year in the first half of 2026, while the average institutional full-year forecast requires significant recovery in the second half. The forecast range is RMB 5.997–8.048 billion. If polysilicon, coal, thermal power, investment income, or renewable-energy businesses recover less than expected, full-year results may fall below consensus.
• As of September 12, 2026, the company’s proposed convertible-bond issuance remained under review by the Shanghai Stock Exchange and had not completed registration or issuance. The cancellation and capital reduction of approximately 32.54 million repurchased shares also remained in the creditor-notification and subsequent-processing stage. The timing of the financing and share-capital changes therefore remains uncertain.

8. Conclusion and Outlook

TBEA’s medium- to long-term growth thesis lies in expanding orders for high-end power-transmission and transformation equipment, UHV, flexible DC, overseas EPC, and renewable-energy system integration. By increasing the share of high-value-added equipment, energy storage, and high-end aluminum-based materials, the company can reduce the drag on overall margins from wires and cables, ordinary aluminum products, and cyclical resource businesses. Growth in power-transmission and transformation orders in 2025 and the relatively rapid increase in international orders provide a foundation for future revenue recognition.

The current fundamentals remain in a recovery and validation phase. First-half 2026 revenue growth did not translate into growth in net profit attributable to the parent. The gross margin of renewable-energy products and engineering was only 0.59%, and impairment provisions also reflected pressure from polysilicon prices, inventory, accounts receivable, and power-station settlement. Accounts receivable were approximately RMB 21.005 billion, and turnover days increased from approximately 55 days in 2023 to approximately 67 days in 2025. Working-capital usage by overseas EPC, power-transmission and transformation projects, and power-station construction remains an area of concern.

Key issues for future assessment include whether power-transmission and transformation and overseas orders can be delivered and recognized as revenue on schedule; whether polysilicon supply, demand, and pricing can improve; whether coal and thermal-power profitability can recover; whether national-subsidy reviews and settlements for photovoltaic power stations can progress; and whether institutional forecasts for second-half 2026 earnings recovery can be achieved. The cancellation of repurchased shares remains in the subsequent-processing stage, while the convertible bonds remain under exchange review. The final progress of these matters may also affect the company’s capital structure and funding arrangements.

Data Sources

• TBEA (600089)_Company Announcements_TBEA: 2025 Annual Report_Sina Finance_Sina.com
• TBEA Co., Ltd. 2025 Annual Report
• https://dataclouds.cninfo.com.cn/shgonggao/2025/2025-04-29/3697437424cd11f0b11bfa163e39923a.pdf
• Company Announcements_TBEA: 2025 Annual Report_Sina Finance_Sina.com
• [TBEA Co., Ltd.

2025 Follow-up Rating Report

○ Financial Overview

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• TBEA Co., Ltd. 2025 Annual Report
• TBEA (600089)_Company Announcements_TBEA: Summary of 2026 Interim Report_Sina Finance_Sina.com
• TBEA (600089) Earnings Forecast_F10_THS Financial Services
• TBEA Co., Ltd. 2026 Interim Report Summary|Shanghai Securities Journal
• TBEA (600089)_Company Announcements_TBEA: 2025 Annual Report_Sina Finance_Sina.com
• TBEA (600089.SH) Earnings Forecast-PC_HSF10 Data
• Institutional Rating|Huatai Securities Gives TBEA a “Buy” Rating
• TBEA (600089) Historical Stock Data: Historical Prices, Quotes, Charts_Investing.com
• TBEA (600089) P/E|Valuation|Fundamentals - Lixinger
• TBEA (600089)_Stock Quotes, Quotes Homepage_CFi
• TBEA (600089)_Company Announcements_TBEA: 2026 Interim Report_Sina Finance_Sina.com
• TBEA (600089) Company Announcements_Sina Finance_Sina.com
• China Securities Journal - TBEA Co., Ltd.<BR/>Announcement on Notifying Creditors of the Reduction of Registered Capital
• TBEA (600089)_Company Announcements_TBEA: Announcement on Extending the Validity of the Shareholders’ Resolution and Relevant Authorization Period for the Issuance of Convertible Bonds to Unspecified Investors_Sina Finance_Sina.com
• TBEA (600089)_Company Announcements_TBEA: 2026 Interim Power-Generation Announcement_Sina Finance_Sina.com
• TBEA_Individual Stock Calendar_East Money_Data Channel
• TBEA (600089)_Company Announcements_TBEA: External Investment Announcement_Sina Finance_Sina.com
• Regulatory Inquiries | Shanghai Stock Exchange
• TBEA (600089) Latest Stock Price, Real-Time Chart, and Price Analysis Forecast_Investing.com
• TBEA (600089) - Historical Trading Data | Dabanke
• TBEA (600089)_Stock Quotes, Quotes Homepage_CFi
• 600089 Price and Chart — SSE:600089 — TradingView
• 600089 Technical Analysis, RSI and Moving Averages - Investing.com
• TBEA (600089) Fund Flows_Individual Stock Quotes_THS Finance
• TBEA (600089) - Tradable Shareholders - Stock Quotes Center - Sohu Securities

This report was automatically searched, compiled, and generated by AI based on publicly available information. The information is current as of the September 11, 2026 close; market data is primarily based on Dabanke and CFi. Some Investing pages show RMB 18.76, which differs from the primary data sources; this structured data uses RMB 18.72. The information may differ in timeliness. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.