Henan Pinggao Electric Co., Ltd. (600312)

Equity Research Report　|　Industry: Grid Equipment (High-, Ultra-High- and UHV Power Transmission and Distribution Equipment)　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; September 12–13, 2026 fell on a weekend, and no new A-share closing prices were generated. Technical indicators primarily use daily data from Da Bolang, on an unadjusted basis; certain moving averages and technical ratings are cross-referenced against Investing.com at approximately the same time.

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

1. Executive Summary

Pinggao Electric’s core fundamentals are characterized by “revenue under pressure, improving profits and relatively ample orders”: revenue in the first half of 2026 was RMB 5.374 billion, down 5.64% year on year, while net profit attributable to shareholders was RMB 817 million, up 22.87% year on year. Gross margin increased to approximately 29.75%. During the same period, the company won approximately RMB 6.46 billion in State Grid transmission, transformation and UHV projects, and in September disclosed winning bids totaling approximately RMB 936 million for State Grid projects. However, not all relevant projects have yet entered into formal commercial contracts, and their revenue and profit contribution will still depend on the timing of contract execution, delivery, acceptance and settlement.

The company’s profit improvement mainly relies on optimization of its high-voltage and UHV product mix, lean manufacturing and cost controls. In 2025, the high-voltage segment generated revenue of RMB 7.747 billion with a gross margin of 27.76%, while the operation, maintenance and other segment had a gross margin of 28.90%. By contrast, the distribution-grid segment’s gross margin declined to 15.53%, and the international segment’s gross margin was -24.39%, indicating that high-voltage and O&M businesses provide relatively strong support for overall profitability. The recovery of distribution-grid profitability and a turnaround in the international business remain key areas to monitor. The company operates in a relatively high-barrier segment of UHV AC and DC switchgear, with advantages in technology, qualifications, testing capabilities and customer access. However, downstream customer concentration is high: the five largest customers accounted for 79.41% of total annual sales in 2025, while State Grid and its subsidiaries accounted for 64.32%.

Cash flow and working capital are key aspects of the fundamentals that require close monitoring. As of the end of 2025, accounts receivable, receivables financing and contract assets totaled approximately RMB 7.31 billion, equivalent to approximately 58.4% of 2025 revenue. Net cash flow from operating activities was RMB 811 million in 2025, down 73.05% year on year. In the first half of 2026, net cash flow from operating activities fell further to negative RMB 689 million. The company also stated that the increase in inventory was mainly attributable to higher work-in-progress and finished-goods inventories in order to ensure project execution. It will be important to observe whether order delivery can be smoothly converted into revenue, collections and operating cash flow.

As of the September 11, 2026 close, the company’s share price was RMB 19.16, corresponding to a TTM P/E of approximately 20.44x and a P/B of approximately 2.19x. The short-term closing price was below the MA5, MA10 and MA20, while MACD was below the zero line, indicating weak technical momentum. However, RSI6 was 34.1 and the share price was close to the lower Bollinger Band, leaving room for a technical rebound. The market continues to hold relatively high expectations for the company’s future earnings. Multiple institutions forecast net profit attributable to shareholders of approximately RMB 1.404 billion, RMB 1.701 billion and RMB 1.970 billion for 2026–2028, respectively. These figures are institutional forecasts, however, and their realization will depend on UHV project delivery, revenue recognition, gross-margin sustainability and cash collections.

2. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Portfolio

• High-voltage segment: Revenue of RMB 7.747 billion in 2025, accounting for approximately 62.3% of revenue from principal operations, with a gross margin of 27.76%. Main products include 72.5–1100kV GIS/H-GIS, T-GCB, open-type SF6 circuit breakers, AC and DC disconnectors, and grounding switches.
• Distribution-grid segment: Revenue of RMB 3.264 billion in 2025, accounting for approximately 26.2% of revenue from principal operations, with a gross margin of 15.53%. Products include distribution transformers, prefabricated substations, low-voltage switchgear, low-voltage power-quality management equipment, and intelligent distribution-automation terminals.
• International segment: Revenue of RMB 258 million in 2025, accounting for approximately 2.1% of revenue from principal operations, with a gross margin of -24.39%. The segment remained loss-making due to the international political and economic environment, progress on existing projects, labor costs and construction-management costs.
• O&M and other businesses: Revenue of RMB 1.173 billion in 2025, accounting for approximately 9.4% of revenue from principal operations, with a gross margin of 28.90%. Businesses include maintenance services, spare parts, full life-cycle equipment management and other related activities.
• New businesses: New-energy grid-connection equipment, charging piles, intelligent terminals, electric boilers and thermal energy storage, offshore wind-power grid-connection equipment and others. The minutes did not disclose separate revenue or profit data for these businesses.
• In 2025, total revenue from principal operations was RMB 12.442 billion, operating costs were RMB 9.508 billion, and consolidated gross margin was 23.58%.

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

Pinggao Electric occupies an upper-middle position in the transmission and distribution equipment value chain. Its core role is to integrate metal materials, insulating materials, mechanical mechanisms and high-end electrical components into high-, ultra-high- and UHV switchgear, while providing design, manufacturing, testing, systems integration, engineering services and O&M. The company has technology, qualification, testing, operating-experience and customer-access barriers in UHV switchgear. However, its downstream customers are concentrated among grid companies, and pricing remains subject to centralized tendering and procurement rules.

• Major purchases include copper, aluminum and other conductive and structural materials; steel and mechanical structural components; SF6 gas and materials related to environmentally friendly alternative gases; epoxy resin, composite insulators and other insulating materials.
• The company mainly purchases or uses hydraulic mechanisms, spring mechanisms, vacuum interrupters, bushings, surge arresters, electronic control and monitoring components, as well as transformer components, switchgear components, intelligent terminals and automation components required for distribution-grid equipment.
• In 2025, direct materials for the transmission and distribution equipment manufacturing business totaled approximately RMB 7.713 billion, accounting for 81.12% of the cost of principal operations. The cost structure is dominated by direct materials and is relatively sensitive to prices of copper, aluminum, steel and high-end electrical components.
• The annual report noted that bulk raw-material prices fluctuated frequently in 2025, but copper, silver and other raw materials represented a relatively low proportion of the company’s overall costs. The proportion of raw materials in the cost of principal operations was broadly stable year on year. This does not support the conclusion that the company’s profits are determined entirely by copper prices.
• Purchases from the five largest suppliers totaled RMB 1.830 billion in 2025, accounting for 19.80% of total annual purchases. The largest share attributable to a single supplier was 1.87%, and no single supplier accounted for more than 50% of purchases. Ordinary raw-material suppliers are relatively dispersed, giving the company relatively strong overall substitution capacity. However, certain specialized components for high-voltage equipment, special insulating materials, hydraulic mechanisms and high-end electrical components may be subject to technical certification and switching-cycle constraints. Specific supplier concentration was not disclosed.
• Major customers include State Grid Corporation of China and its subsidiaries, China Southern Power Grid and its subsidiaries, China Huadian and other power-generation groups, local power companies, industrial customers in mining, chemicals and other sectors, rail-transit customers, as well as overseas power companies and engineering-project customers.
• The company mainly sells through centralized grid tenders, direct procurement and engineering projects. Sales to the five largest customers totaled RMB 9.939 billion in 2025, accounting for 79.41% of total annual sales. Sales to State Grid Corporation of China and its subsidiaries totaled RMB 8.050 billion, accounting for 64.32% of total annual sales. These concentration figures are based on the 2025 annual-report basis. The company did not disclose the complete names of all five largest customers, so the full composition of customer concentration cannot be determined from these data. The latest annual report should be consulted for details.
• Downstream customers have relatively high credit quality and relatively stable long-term relationships. However, grid customers such as State Grid and China Southern Power Grid generally use centralized tendering, meaning that prices, delivery, acceptance and payment terms are subject to tendering rules. The company cannot freely raise prices in line with cost changes.
• The company has barriers in technology, qualifications, brand and supplier access. Overall, however, it is a grid-equipment manufacturer with low supplier concentration and high customer concentration, and its bargaining power is constrained by centralized grid procurement and the pace of capital expenditure.
• There are relatively few participants in the UHV market, with high technical and certification barriers. The 110kV–220kV and distribution-grid markets have more participants, greater product standardization and more intense price competition. Overseas business also faces local certification, project financing, political, foreign-exchange and collection risks.
• As of December 31, 2025, accounts receivable were RMB 6.168 billion, equivalent to approximately 49.3% of revenue of RMB 12.517 billion. Receivables financing was RMB 427 million and contract assets were RMB 720 million. The three items totaled approximately RMB 7.31 billion, equivalent to approximately 58.4% of revenue. Accounts payable were RMB 5.776 billion and notes payable were RMB 1.962 billion, totaling RMB 7.738 billion, equivalent to approximately 61.8% of revenue. Contract liabilities were RMB 1.730 billion. These ratios are calculated from annual-report data and are not equivalent to turnover days; the company did not directly disclose accounts-receivable turnover days. The data indicate relatively long project delivery, acceptance and collection cycles. Accounts payable, notes payable and contract liabilities provide a partial offset to working-capital requirements. Net cash flow from operating activities was RMB 811 million in 2025, down 73.05% from RMB 3.008 billion in 2024, indicating that profit growth was not fully converted into operating cash flow. Project collections and working capital remain key areas to monitor.
• The company’s customer concentration was significantly higher than its supplier concentration in 2025: the five largest customers accounted for 79.41% of total annual sales, and State Grid and its subsidiaries accounted for 64.32%; the five largest suppliers accounted for 19.80% of total annual purchases, while the largest single supplier accounted for 1.87%. Customer concentration figures are based on the 2025 annual report. The complete customer list was not disclosed, and the composition of the five largest customers could not be fully cross-checked. The latest annual report should be consulted for details.

The company is positioned in the upper-middle and high-end portion of the power-equipment value chain. It is neither an upstream resource company with pricing power over natural resources nor a consumer business with strong brand premiums. Its UHV switchgear benefits from relatively high barriers based on technology, qualifications, testing and operating experience. Future margin improvement will mainly depend on a higher delivery mix of high-value UHV products, product upgrades, lean manufacturing, expansion of O&M services, recovery in distribution-grid profitability and control of international-project risks, rather than the ability to freely raise prices for downstream customers.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formal financial report is the 2026 interim report, announced on August 20, 2026, covering the period ended June 30, 2026, and unaudited. In the first half of 2026, non-GAAP net profit attributable to shareholders was RMB 798 million, up 20.76% year on year; basic EPS was RMB 0.6020, up 22.88% year on year. For full-year 2025, non-GAAP net profit attributable to shareholders was RMB 1.093 billion, up 10.10% year on year; basic EPS was RMB 0.8253. Net cash flow from operating activities was negative RMB 689 million in the first half of 2026, compared with negative RMB 430 million in the same period of the prior year. Full-year 2025 net cash flow from operating activities was RMB 811 million, down 73.05% year on year.

The company exhibited declining revenue, rising profit and an improving gross margin in the first half of 2026. Consolidated gross margin was approximately 29.75%, compared with approximately 24.72% in the same period of the prior year. Net margin was approximately 16.02%, compared with approximately 12.60% in the same period of the prior year. Profit growth was significantly higher than revenue growth, mainly reflecting improvements in gross margin and profitability. Second-quarter 2026 revenue was RMB 2.924 billion, down 8.19% year on year, while net profit attributable to shareholders was RMB 402 million, up 31.20% year on year. As of June 30, 2026, net assets attributable to shareholders were RMB 11.866 billion, up 5.50% from the end of 2025. Total assets were RMB 21.634 billion, down 2.22% from the end of 2025. The debt-to-assets ratio was approximately 42.85%. Continued negative operating cash flow, project delivery, revenue-recognition timing and accounts-receivable collections require attention.

3.2 Earnings Forecasts

The above figures are aggregate multi-institution forecasts displayed on Eastmoney’s earnings-forecast page. Fifteen institutions provided forecasts for 2026 and 2027, respectively, while 13 institutions provided forecasts for 2028. The page data were captured relatively early, before September 10, 2026, and may not fully reflect all institutions’ latest adjustments after the August 19, 2026 interim report. They should therefore be viewed as a multi-institution base-case scenario rather than an absolutely current consensus forecast. Recent individual institutional forecasts indicate that 2026 EPS is generally concentrated at RMB 0.97–1.06, 2027 EPS at RMB 1.14–1.31, and 2028 EPS at RMB 1.34–1.55. Among specific forecasts, Guolian Minsheng Securities expects revenue of RMB 14.106 billion, RMB 15.887 billion and RMB 17.680 billion for 2026–2028, respectively, and net profit attributable to shareholders of RMB 1.387 billion, RMB 1.735 billion and RMB 2.014 billion, respectively. Soochow Securities expects net profit attributable to shareholders of RMB 1.41 billion, RMB 1.74 billion and RMB 2.05 billion, respectively.

3.3 Valuation and Institutional Ratings

As of September 10, 2026, the share price was approximately RMB 19.30, market capitalization was approximately RMB 26.19 billion, TTM P/E was approximately 20.59x, P/B was approximately 2.21x, TTM P/S was approximately 2.15x, and net assets per share were approximately RMB 8.74. Based on the multi-institution consensus EPS from Eastmoney, forecast P/E for 2026–2028 is approximately 18.6x, 15.4x and 13.3x, respectively. Based on the recent institutional forecast ranges, forecast P/E is approximately 18.2–19.9x, 14.7–16.9x and 12.5–14.4x, respectively. If future earnings grow in line with institutional forecasts, the forward P/E implied by the current share price will decline year by year. Compared with the median institutional target price of RMB 24.72, the current share price offers some potential upside. However, this potential depends on UHV order delivery, the pace of revenue recognition and realization of earnings forecasts. Key uncertainties include slower-than-expected construction, tendering and delivery of UHV and grid-investment projects; further delays in project revenue recognition; gross-margin pressure from rising raw-material prices; cash-flow pressure from growth in contract assets, accounts receivable and inventory; and whether the relatively high gross margin achieved in the first half of 2026 can be sustained. Institutional forecasts are compiled from research reports and are not company guidance or a formal company commitment.

4. Recent News and Announcements

4.1 State Grid Project Wins Totaling Approximately RMB 936 Million

On September 9, 2026, the company and its subsidiaries Henan Pingzhi High Voltage Switchgear Co., Ltd., Tianjin Pinggao Intelligent Electric Co., Ltd., Shanghai Pinggao Tianling Switchgear Co., Ltd., Henan Pinggao General Electric Co., Ltd., Pinggao Group Weihai High Voltage Apparatus Co., Ltd., as well as its joint venture Pinggao Toshiba (Langfang) Arrester Co., Ltd., became winning bidders for relevant State Grid projects. The winning amount for State Grid Corporation of China’s fourth 2026 public tender for substation equipment, including cables, totaled approximately RMB 850 million. The winning amount for the fourth direct procurement of substation equipment on a single-source basis totaled approximately RMB 86 million. The two amounts totaled approximately RMB 936 million, equivalent to approximately 7.48% of the company’s 2025 revenue. As of the announcement date, the company had not signed formal commercial contracts with relevant State Grid entities. Contract terms, delivery schedules and the impact on current-period results remain uncertain, and the formal contracts will prevail.

4.2 Interim Net Profit Increased Year on Year While Revenue Declined

On August 20, 2026, the company disclosed its 2026 interim report. In the first half of 2026, net profit attributable to shareholders was approximately RMB 817 million, up 22.87% year on year; basic EPS was approximately RMB 0.602; and revenue was approximately RMB 5.374 billion, down approximately 5.64% year on year. The company stated that the revenue mix had changed, with key projects accounting for a higher proportion, while full-process lean cost and expense controls had been strengthened, expanding product profitability. As a result, profit growth exceeded revenue growth.

4.3 Interim Results Briefing Disclosed Order and Product Progress

On August 27, 2026, the company held its 2026 interim results briefing. The company stated that it won a combined RMB 6.46 billion in State Grid transmission and transformation and UHV projects in the first half of 2026, and that orders on hand were relatively ample. Its Pingzhi subsidiary had completed type testing for a new 1100kV GIS product and was continuing to expand in the core markets of the two major grids, central state-owned enterprises outside the grid sector and overseas exports of individual equipment. The company also stated that the increase in inventory was mainly related to higher work-in-progress and finished-goods inventories, intended to ensure timely project execution, and that the relevant inventory would gradually generate revenue as products were delivered. The company made an accounting-estimate change in response to expected credit risk on receivables and stated that the credit risk of related-party customers was generally controllable. The provision for bad debts did not mean that actual bad debts had already occurred.

4.4 Proposed 2026 Interim Cash Dividend

On August 20, 2026, the company disclosed its 2026 interim profit distribution plan, proposing a cash dividend of RMB 2.42 per 10 shares, including tax. Based on the total share capital of 1.356921309 billion shares disclosed in the announcement, the expected cash dividend would be approximately RMB 328.37 million, including tax, representing a cash payout ratio of approximately 40.20%. The plan is based on unaudited first-half 2026 net profit attributable to shareholders of RMB 816.85 million. It had already been authorized by the company’s 2025 annual shareholders’ meeting and therefore did not need to be resubmitted for shareholder approval.

4.5 Templeton-Related Entities’ Stake Reached Above 5%

On July 13, 2026, the company disclosed a notice concerning a change in equity interests and a simplified equity-change report after a shareholder’s additional purchases brought its stake to 5%. As of July 6, 2026, Templeton Asset Management Ltd. and Franklin Templeton Investment Management Limited had acquired a combined 73,571,928 company shares through the Stock Connect mechanism, equivalent to 5.42% of total share capital. The two entities are controlled by the same party and constitute parties acting in concert. The change in equity interests involved additional purchases, did not trigger a mandatory tender offer and would not result in a change in the company’s controlling shareholder or actual controller. Hong Kong Securities Clearing Company Limited is the nominee holder under the Stock Connect mechanism and cannot simply be equated with the ultimate holding of a single investor or fund.

4.6 Investee Company Pinggao Yidian Completed Liquidation and Deregistration

On August 6, 2026, the company disclosed an announcement on the progress of the liquidation and deregistration of an investee company by a wholly owned subsidiary, as well as the related-party transaction. Pinggao Yidian obtained a Registration Notice issued by the Dongli District Administration for Market Regulation of Tianjin and completed its industrial and commercial deregistration. The company stated that the matter would not have a material impact on its overall business development or profitability, would not change the scope of its consolidated financial statements, and would not harm the interests of the company or all shareholders. The matter was the liquidation and exit of an investee company and did not constitute a material merger or acquisition.

4.7 Technical Achievement in 550kV Filter-Bank Circuit Breakers Won First Prize

On September 8, 2026, the company’s website disclosed that “Research and Application of Key Technologies for the Industrialization of 550kV Filter-Bank Circuit Breakers,” led by Smart High Voltage Electrical Apparatus (Henan) Co., Ltd., a company affiliated with Pinggao, won first prize in the technical category of the eighth National Equipment Management and Technological Innovation Achievement Awards. The matter reflects progress in the company’s R&D and industrialization of 550kV filter-bank circuit breakers and core UHV DC transmission equipment. However, publicly available information did not disclose the corresponding order value, revenue scale or profit contribution, so its earnings impact cannot currently be quantified.

4.8 No Newly Issued Third-Quarter Earnings Forecast or Flash Report Found as of September 11, 2026

As of September 11, 2026, among the company’s announcements from August to September 2026 identified in this search, no newly issued third-quarter 2026 earnings forecast or earnings flash report was found. Recent earnings information mainly came from the 2026 interim report and the August 27 results briefing. Investors should continue to monitor whether a third-quarter report or third-quarter earnings forecast is released in accordance with exchange rules.

4.9 No Share Repurchase Announcement Found as of September 11, 2026

As of September 11, 2026, no announcement of a share-repurchase plan, repurchase progress or completion of a repurchase by the company was found among its August–September 2026 disclosures. The company’s major recent shareholder-level change was the increase in holdings by Templeton-related entities to above 5%, rather than a repurchase by the listed company.

4.10 No Material Regulatory Penalty or Merger and Acquisition Announcement Found as of September 11, 2026

As of September 11, 2026, no announcement was found indicating that the company had been publicly penalized, investigated or subjected to major regulatory measures by the China Securities Regulatory Commission or the Shanghai Stock Exchange during August–September 2026. This conclusion does not exclude matters that had not yet been disclosed publicly or had not been indexed by search engines. No announcement concerning a material asset restructuring, share issuance for asset purchases or material acquisition was found either. The main recent announcement related to assets concerned completion of the liquidation and deregistration of Tianjin Pinggao Yidian Technology Co., Ltd., which was the liquidation and exit of an investee company.

4.11 Overall Assessment of Recent News Flow

As of September 11, 2026, recent news flow has been dominated by State Grid orders, interim earnings improvement, an interim cash dividend and institutional buying, making the fundamental catalysts broadly positive. Areas requiring attention include the combination of declining revenue and rising profit, inventory and receivables management, the capital-expenditure pressure associated with approximately RMB 1.4 billion of green, low-carbon smart-factory investment, and the pace of order delivery and collections. The RMB 936 million of winning bids does not yet correspond to formal commercial contracts and should not be equated with recognized revenue or profit. Its actual contribution will depend on contract signing, product delivery, acceptance and settlement arrangements.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Pinggao Electric closed at RMB 19.16, below the MA5, MA10 and MA20, with a weak short-term moving-average alignment. MACD was below the zero line and RSI6 had fallen to 34.1, indicating generally weak technical momentum, although short-period indicators were approaching low levels. The share price was close to the lower Bollinger Band at RMB 19.08. If support emerges near the lower band, a technical rebound is possible; if the price effectively breaks below approximately RMB 19.00, attention should turn to support around the recent low of RMB 18.60. Recent turnover value and turnover rate were within the stock’s normal range. Main-force capital recorded net inflows for three consecutive trading days, but the share price still declined during the period, which is not sufficient to confirm the end of the correction or a trend reversal. Differences in adjustment and data conventions have produced different 52-week highs and lows. The prior annual resistance can be referenced at RMB 25.45–25.65, while extreme annual support can be referenced at RMB 14.84–15.12.

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

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

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weightings, Not Statistical Probabilities)

• Sideways consolidation (relatively higher weighting, approximately 50%–60%; a subjective heuristic judgment based on current technical indicators, price position and capital flows, not a statistical probability): The reference trading range is RMB 19.00–19.90. The trigger would be the price holding the RMB 19.00–19.20 support area while failing to break through the RMB 19.60–19.90 resistance zone, with turnover value remaining within the recent normal range of approximately RMB 250–450 million. RSI6 is near a low level and the share price is close to the lower Bollinger Band, supporting the potential for a rebound or sideways trading. However, MACD and the moving-average structure remain weak.
• Weak downside move (medium weighting, approximately 30%; a subjective heuristic judgment based on current technical indicators, price position and capital flows, not a statistical probability): The price may retest RMB 18.60–18.80. The trigger would be consecutive closes below approximately RMB 19.00, accompanied by a significant increase in daily turnover to above RMB 450–500 million and simultaneous weakness in the grid-equipment or power-equipment sectors. A further volume-backed break below RMB 18.60 would shift attention to RMB 18.00–18.30.
• Strengthening rebound (relatively low weighting, approximately 10%–20%; a subjective heuristic judgment based on current technical indicators, price position and capital flows, not a statistical probability): The price may recover toward RMB 20.30–20.55. The trigger would be a close back above RMB 19.90, turnover increasing for consecutive sessions to approximately RMB 500 million or more, sustained net inflows of main-force capital, and simultaneous strength in grid equipment, UHV and related sectors. Reclaiming the MA20 and the area around the Bollinger middle band could be viewed as an observation signal of technical improvement. An intraday surge that fails to hold above RMB 19.90 would not confirm a trend reversal.

③ Capital and Liquidity Background

As of September 11, 2026, the daily turnover rate was approximately 1.53%. Over the most recent five trading days, the turnover rate was approximately 1.04%–1.80% and turnover value was approximately RMB 272–495 million. Overall, the stock had moderately low turnover and acceptable liquidity, but it was not a high-frequency, highly active trading stock. Main-force capital recorded cumulative net inflows of approximately RMB 9.30 million over the most recent 10 trading days and net inflows for three consecutive trading days. However, main-force capital recorded net inflows on both September 10 and September 11 while the share price declined. Regarding shareholder structure, as of June 30, 2026, the 10 largest tradable shareholders collectively held approximately 771 million shares, representing approximately 56.83% of tradable shares. Institutions collectively held approximately 789 million shares, representing approximately 58.17% of tradable shares, including funds at approximately 5.17% and insurance companies at approximately 3.74%, with most of the remainder classified as “other institutions.” Public data do not further equate “other institutions” with public funds, social security funds or QFII, so the specific identities of major institutions cannot be confirmed on this basis. These shareholder data were approximately two and a half months older than September 11, 2026 and represent a lagged holdings snapshot. Position adjustments may have occurred during the period, so the data do not represent real-time ownership structure. The relatively high concentration among the 10 largest tradable shareholders and a daily turnover rate of approximately 1%–2% indicate relatively concentrated holdings, meaning concentrated short-term trading could still have a noticeable impact on the share price. However, existing data are insufficient to assess the real-time depth of the order book or bid-ask spread. A volume confirmation signal to monitor is whether daily turnover value subsequently expands to approximately RMB 500 million or more for consecutive sessions while the share price closes above RMB 19.90. This could indicate a clear increase in short-term capital participation. If turnover expands but the share price still closes below RMB 19, it is more likely to reflect selling pressure rather than effective capital inflows.

Volume confirmation signal: If daily turnover value subsequently expands to approximately RMB 500 million or more for consecutive sessions and the share price simultaneously closes above RMB 19.90, this may serve as an observation signal of a clear increase in short-term capital participation. If volume expands but the price still closes below RMB 19, investors should be alert to the possibility that this reflects selling pressure.

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

• Observe whether the RMB 19.00–19.20 area provides effective support; if it breaks, monitor RMB 18.60–18.80. This is an observation idea, not a trading instruction.
• Observe whether the dense moving-average resistance zone at RMB 19.60–19.90 can be reclaimed and whether turnover increases at the same time. This is an observation idea, not a trading instruction.
• Observe whether the MACD histogram can narrow from negative levels and whether RSI6 can rise from approximately 34 to above 40. This is an observation idea, not a trading instruction.
• Observe whether turnover value can expand to approximately RMB 500 million or more for consecutive sessions and whether this is confirmed by the share price moving above RMB 19.90. This is an observation idea, not a trading instruction.

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

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

High-, ultra-high- and UHV switchgear is a segment of the grid-equipment value chain with high barriers in technology, testing, reliability, operating experience and supplier certification. Products are mainly sold to State Grid, China Southern Power Grid, power-generation groups and other electricity customers, with procurement primarily conducted through tenders and centralized purchasing. The company’s core products cover AC voltage levels from 10kV to 1100kV and DC voltage levels from 10kV to 1120kV. R&D expenditure was approximately RMB 605 million in 2025, accounting for 4.84% of revenue, while R&D personnel totaled 822, accounting for 16.96% of employees.

6.2 Competitive Landscape

• The higher the voltage level, the greater the requirements for technology, type testing, reliability, operating experience and customer track record. Entry into the grid-supplier system requires product certification, performance assessment and supplier review.
• There are relatively few participants in the UHV market, resulting in a relatively concentrated competitive landscape. The 110kV–220kV and distribution-grid markets have more participants, making price competition and delivery efficiency increasingly important.
• GIS, circuit breakers, disconnectors and other equipment projects have relatively long cycles and involve multiple stages, including design, manufacturing, installation and acceptance.
• China’s grid construction is focused on UHV transmission, distribution-grid upgrades, power transmission from energy bases, renewable-energy grid connection and the development of a new power system. The 2024 annual report disclosed that, as of 2024, State Grid had completed a total of 38 UHV projects, comprising “22 AC and 16 DC.”
• Overseas markets offer incremental opportunities but face risks related to local certification, brand recognition, local service networks, project financing, politics, foreign exchange and collections.
• In 2025, the company produced 9,117 bays, units and sets of high-voltage products and 29,135 bays, units and sets of distribution-grid products. Because product specifications, capacities and values differ substantially, these figures cannot be converted into a standardized annual capacity. Specific designed capacity for GIS, circuit breakers and disconnectors was not disclosed.

6.3 Major Competitors

Pinggao Electric’s core competitiveness is concentrated in UHV AC and DC switchgear. It has established specialized barriers through the China Electrical Equipment Group system, State Grid customer access, 1100kV design and manufacturing capabilities and testing capabilities. China XD Electric has a broader business chain, XJ Electric is stronger in DC transmission and automation, Sieyuan Electric has notable market-oriented competitiveness in medium- and high-voltage, distribution-grid and overseas markets, and Shandong Electrical Engineering & Equipment competes with Pinggao within the same group. The minutes did not provide market-share, tender-share or ranking data verified under a consistent third-party methodology. The above comparison is therefore primarily a qualitative comparison based on product scope, business structure and customer markets.

7. Risk Factors

• Dependence on State Grid customers and centralized procurement: The five largest customers accounted for 79.41% of total annual sales in 2025, while State Grid and its subsidiaries accounted for 64.32%. Changes in grid investment, tendering, delivery or acceptance schedules could affect order acquisition, revenue recognition and collections.
• Risk that winning bids will not translate into certain revenue: The State Grid projects disclosed in September 2026 had a combined winning-bid value of approximately RMB 936 million. However, as of the announcement date, formal commercial contracts had not been signed with the relevant entities. Contract terms, delivery schedules and their impact on current-period results remain uncertain. The winning bids cannot be directly equated with recognized revenue or profit.
• Operating cash-flow and collection risk: As of the end of 2025, accounts receivable, receivables financing and contract assets totaled approximately RMB 7.31 billion, equivalent to approximately 58.4% of revenue. Net operating cash flow declined 73.05% year on year in 2025 and was further negative at RMB 689 million in the first half of 2026. Delays in project acceptance or customer settlement could increase working-capital pressure.
• Inventory and project-execution risk: At the 2026 interim results briefing, the company stated that the increase in inventory was mainly attributable to higher work-in-progress and finished-goods inventories used to ensure timely project execution. If delivery, acceptance or revenue recognition is further delayed, inventory-occupation and impairment pressure could rise.
• Gross-margin sustainability risk: Consolidated gross margin was approximately 29.75% in the first half of 2026, significantly above approximately 24.72% in the same period of the prior year. Whether this high margin can be sustained will depend on the delivery mix of high-voltage and UHV products, cost controls and project settlement. If the revenue mix changes or low-margin businesses increase as a proportion of revenue, profit growth could slow.
• Profitability risks in distribution-grid and international businesses: The distribution-grid segment’s gross margin was 15.53% in 2025, below those of the high-voltage and O&M segments. The international segment generated revenue of RMB 258 million with a gross margin of -24.39% and remains affected by the international political and economic environment, project delays, labor costs and construction-management costs, potentially continuing to weigh on overall profitability.
• Raw-material and specialized-component cost risk: Direct materials accounted for approximately 81.12% of the cost of principal operations in 2025, making the company relatively sensitive to prices of copper, aluminum, steel and high-end electrical components. Although ordinary suppliers are relatively dispersed, certain specialized components for high-voltage equipment, special insulating materials, hydraulic mechanisms and high-end electrical components may be subject to certification and switching cycles. Cost increases may not be passed through in a timely manner under centralized tendering.
• Capital-expenditure and financial-pressure risk: Recent news referred to approximately RMB 1.4 billion of investment in a green, low-carbon smart factory. If construction progress, investment returns or financing arrangements fall short of expectations, capital expenditure and cash-flow pressure could increase. Operating cash flow was negative in the first half of 2026, so the matching between investment spending and operating collections requires monitoring.
• Valuation and technical-performance risk: As of September 11, 2026, the share price of RMB 19.16 corresponded to a TTM P/E of approximately 20.44x. The price was below the MA5, MA10 and MA20, and MACD was below the zero line. If institutional earnings forecasts are not achieved, or UHV project delivery and revenue recognition fall short of expectations, valuation digestion and share-price volatility could intensify.

8. Conclusion and Outlook

Pinggao Electric’s medium- and long-term growth drivers mainly come from demand for UHV AC and DC transmission, backbone-grid substations and distribution-grid construction. The company has strong barriers in 1100kV switchgear, testing capabilities and grid-customer access. In the first half of 2026, profit growth significantly exceeded revenue growth, reflecting a phased improvement in product mix and earnings quality. State Grid wins and orders on hand also provide some support for subsequent revenue. If the delivery mix of high-value UHV products continues to rise, while O&M expands, distribution-grid gross margin recovers and international-project risks are controlled, the company’s profitability could still improve.

However, the realization of growth remains affected by centralized grid tendering and the pace of project construction and acceptance, and revenue recognition may fluctuate periodically. High customer concentration makes the company sensitive to the investment pace, tender prices and payment arrangements of major customers such as State Grid. Direct materials account for approximately 81.12% of the cost of principal operations, while centralized procurement limits the ability to fully pass cost increases through to downstream customers. The international business remains loss-making, and the distribution-grid business has a lower gross margin than the high-voltage and O&M segments, meaning that business-mix improvement is not assured.

Overall, the company is currently in a phase characterized by simultaneous improvement in profitability and pressure on cash flow. The key issue going forward is whether it can convert orders into stable revenue, profit and operating cash flow, while validating the sustainability of the relatively high gross margin achieved in the first half of 2026. The share price remains technically weak and valuation depends to some extent on future earnings growth. Investors should therefore focus on subsequent contract signing, delivery and acceptance, changes in receivables and inventory, operating cash flow and third-quarter results, rather than relying solely on winning-bid amounts or short-term profit growth to assess the operating trend.

Data Sources

• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: 2025 Annual Report_Sina Finance_Sina.com
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: 2023 Annual Report Summary_Sina Finance_Sina.com
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: 2022 Annual Report_Sina Finance_Sina.com
• Company Announcements_Pinggao Electric: 2023 Annual Report_Sina Finance_Sina.com
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: 2024 Annual Report_Sina Finance_Sina.com
• China XD Electric Co., Ltd. 2025 Interim Report
• XJ Electric (000400)_Company Announcements_XJ Electric: 2025 Annual Report_Sina Finance_Sina.com
• Sieyuan Electric (002028)_Company Announcements_Sieyuan Electric: 2025 Annual Report_Sina Finance_Sina.com
• Company Profile - Henan Pinggao Electric Co., Ltd.
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: Winning-Bid Announcement_Sina Finance_Sina.com
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: 2026 Interim Report_Sina Finance_Sina.com
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: Record of Investor Relations Activities at the 2026 Interim Results Briefing_Sina Finance_Sina.com
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: Announcement on the 2026 Interim Profit Distribution Plan_Sina Finance_Sina.com
• Stock Code: 600312  Stock Abbreviation: Pinggao Electric  Announcement No.: 2026–024
• Pinggao Electric (600312) Shareholder Research_F10_Tonghuashun Financial Services Network
• Pinggao Electric (600312)_Company Announcements_Pinggao Electric: Announcement on the Completion of Liquidation and Deregistration of an Investee Company by a Wholly Owned Subsidiary and Progress of the Related-Party Transaction_Sina Finance_Sina.com
• Company News List - Henan Pinggao Electric Co., Ltd.
• Pinggao Electric (600312) Company Announcements_Sina Finance_Sina.com
• Pinggao Electric (600312.SH) Stock Quotes_Historical Data_Main-Force Capital - Da Bolang Data
• Pinggao Electric (600312) Stock Historical Data: Historical Quotes, Prices and Charts_Investing.com
• Pinggao Electric (600312) Stock Price Trend and Technical Analysis_Future Forecast_Buy/Sell Recommendations_Investing.com
• Pinggao Electric (600312)_Capital Flows_Stockstar
• Pinggao Electric (600312) Latest Developments_F10_Tonghuashun Financial Services Network

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; September 12–13, 2026 fell on a weekend, and no new A-share closing prices were generated. Technical indicators primarily use daily data from Da Bolang on an unadjusted basis, while certain moving averages and technical ratings are cross-referenced against Investing.com at approximately the same time. There may be differences in timeliness. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information compilation and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.