Guodian NARI Technology Co., Ltd. (600406)

Individual Stock Analysis Report | Industry: Power Secondary Equipment and Energy Internet | Report Date: September 13, 2026 | As of the September 11, 2026 close; some moving-average, MACD and RSI data are intraday figures and may have changed slightly after the close

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

Guodian NARI recorded operating revenue of RMB 27.767 billion in the first half of 2026, up 14.54% year on year, and net profit attributable to shareholders of RMB 3.073 billion, up 4.08% year on year. Revenue growth was significantly faster than profit growth. Gross margin was approximately 25.34% during the period, while net cash flow from operating activities was RMB 591 million, down 78.95% year on year. Profit quality and cash-flow performance are under pressure, representing the most decision-relevant change at present.

The company’s grid intelligence business remains its core business. It generated revenue of RMB 13.31 billion in the first half of 2026, accounting for 47.92% of total revenue, with a gross margin of 29.90%. The energy low-carbon business generated revenue of RMB 9.614 billion, accounting for 34.62%, and became one of the faster-growing segments in the revenue mix. Overseas revenue was RMB 5.894 billion, accounting for 21.23%. In addition, newly signed contracts for full-year 2025 totaled RMB 75.868 billion, up 14.40% year on year, providing some support for subsequent revenue growth.

The company’s controlling shareholder is NARI Group, and its ultimate controller is the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), giving it central state-owned enterprise status and a strong foundation in grid-related businesses. In August 2026, the company announced a proposed share repurchase of RMB 500 million to RMB 1 billion for equity incentives. As of August 31, it had repurchased approximately 3.8698 million shares and paid approximately RMB 88.90 million. It also proposed an interim dividend of RMB 1.53 per 10 shares for the first half of 2026, indicating continued shareholder-return and incentive arrangements.

As of the September 11, 2026 close, the company’s share price was RMB 22.29. It had fallen approximately 27.4% over the past six months, was close to its 52-week low of RMB 21.26, and remained below major moving averages. MACD was below the zero line, RSI was approximately 36–38, and major funds had continued to record net outflows recently. The technical picture therefore remained weak at low levels, with no confirmed reversal.

2. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Portfolio

• Grid intelligence (terminology used since the 2025 interim report; previously called “smart grid”): includes grid automation, relay protection and flexible transmission. Revenue was RMB 33.42 billion in 2025, accounting for 50.46%, with a gross margin of 30.12%; first-half 2026 revenue was RMB 13.31 billion, accounting for 47.92%, with a gross margin of 29.90%
• Digital-energy integration: revenue was RMB 12.30 billion in 2025, accounting for 18.58%, with a gross margin of 22.62%; first-half 2026 revenue was RMB 3.696 billion, accounting for 13.31%, with a gross margin of 25.55%
• Energy low-carbon: revenue was RMB 16.73 billion in 2025, accounting for 25.26%, with a gross margin of 20.21%; first-half 2026 revenue was RMB 9.614 billion, accounting for 34.62%, with a gross margin of 18.64%
• Industrial interconnection: revenue was RMB 3.014 billion in 2025, accounting for 4.55%, with a gross margin of 21.56%; first-half 2026 revenue was RMB 953.7 million, accounting for 3.43%, with a gross margin of 24.42%
• Integration and other: revenue was RMB 687.1 million in 2025, accounting for 1.04%, with a gross margin of 26.64%; first-half 2026 revenue was RMB 129.0 million, accounting for 0.46%, with a gross margin of 39.53%
• Operating model: integrated R&D, production, sales and services; products and services cover China and more than 100 countries and regions
• Segment-definition note: beginning in mid-2024, the company adjusted its business classification into four major segments—smart grid, digital-energy integration, energy low-carbon and industrial interconnection. Beginning with the 2025 interim report, the segment names were updated to “grid intelligence, digital-energy integration, energy low-carbon and industrial interconnection”

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

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the 2026 interim report, for the period ended 2026-06-30 and released on 2026-08-27. No 2026Q3 data were identified; the latest complete fiscal year is the 2025 annual report. First-half 2026 revenue of RMB 27.767 billion and net profit attributable to shareholders of RMB 3.073 billion were cross-verified by Securities Star and Sohu and were consistent. The total in East Money’s principal-business breakdown also matched these figures and can be relied upon. 2024 revenue has two bases, before and after adjustment: Jiemian News reported RMB 57.417 billion, up 11.15%, based on the pre-adjustment/total operating revenue basis; the annual report retrospectively adjusted the figures after State Grid Ruijiana was included in the consolidated scope in 2024Q1, resulting in adjusted revenue of RMB 57.829 billion, up 11.95%. The basis should be specified when citing the year-on-year comparison. Supplemental first-half 2026 data: net profit including minority interests was RMB 3.248 billion; gross margin was approximately 25.3%; weighted ROE was approximately 5.7%. Segment revenue was RMB 13.31 billion for grid intelligence (47.92%), RMB 9.614 billion for energy low-carbon (34.62%), RMB 3.696 billion for digital-energy integration (13.31%), RMB 954 million for industrial interconnection (3.43%), and RMB 129 million for integration and other. Domestic revenue was RMB 21.87 billion and overseas revenue was RMB 5.894 billion, accounting for 21.23% and showing significant year-on-year expansion. Supplemental 2025 annual-report data: non-recurring-item-adjusted net profit attributable to shareholders was RMB 7.983 billion (+8.04%), diluted EPS was RMB 1.04, and the dividend proposal was RMB 4.75 per 10 shares, representing cash dividends of nearly RMB 5 billion.

First-half 2026 showed the phenomenon of “revenue growth (+14.5%) being significantly faster than profit growth (+4.1%).” Gross margin was under pressure at 25.3%, while financial expenses increased, according to the Securities Star/Sohu interim-report breakdown. This is a major risk point for valuation and earnings expectations and should be highlighted in the report. 2024 revenue has two bases before and after adjustment because State Grid Ruijiana was included in the consolidated scope in 2024Q1. The basis must be specified when citing the year-on-year comparison.

3.2 Earnings Forecasts

The forecasts above are from individual brokerages rather than consensus estimates, and were all issued in April–May 2026: Guotai Haitong (2026-05-05, Xu Qiang/Fang Qing, assigning 30x 2026 PE, a target price of RMB 34.5 and an “Outperform” rating), Hu’an Securities (2026-05-05, Zhang Zhibang/Zheng Yang, corresponding PE multiples of 22/20/17x and a “Buy” rating), and Soochow Securities (2026-04-30, corresponding PE multiples of 23/20/18x and a “Buy” rating). Aggregated multi-institution data, based on the Tonghuashun iFinD methodology: as of 2026-04-30, nine institutions had forecast 2026 net profit attributable to shareholders over the preceding six months, with a high of RMB 9.857 billion, a low of RMB 8.922 billion and an average of RMB 9.366 billion (+13.12% YoY). The highest, lowest and average target prices were RMB 31.64, RMB 28.00 and RMB 29.61, respectively. After Western Securities joined on 2026-05-06 with a 2026 net-profit forecast of RMB 9.384 billion, the average of eight institutions fell to RMB 9.281 billion and the average target price became RMB 30.42. The sample sizes differ, so these averages should not be treated as official figures.

3.3 Valuation and Institutional Ratings

The current share price, estimated at approximately RMB 22.7, was back-calculated from Investing.com’s consensus estimate of an average target price of RMB 29.15 and stated upside of 28.35%, as well as the implied upside of various investment-bank target prices (JPMorgan’s RMB 27.50 implying +21.09% and Goldman Sachs’ RMB 30.10 implying +32.54%). The implied price was approximately the mid-year to third-quarter 2026 level at the snapshot date. This price was back-calculated rather than directly read and represents the snapshot timing of the consensus-estimate page, not the latest real-time price. This search did not successfully retrieve a real-time market-data page that consistently returned a numerical quote. The latest exchange or market-terminal quotation should be used, as the potential error is substantial. PE estimate: based on 2025 EPS of RMB 1.04 and a price of approximately RMB 22.7, static/TTM PE was approximately 21.8x. Brokerage PE estimates for 2026–2028, based on prices on their respective report dates, were 22/20/17x for Hu’an, 23/20/18x for Soochow, and 30x for Guotai Haitong’s 2026 target valuation, corresponding to a target price of RMB 34.5. Other valuation reference points: 2025 diluted EPS was RMB 1.04 and book value per share was approximately RMB 6.66 based on the 2026Q1 figure from CFi, implying approximately 3.4x PB. Ratings were highly and consistently positive, almost all being Buy or Outperform, but target prices varied widely, at approximately RMB 26–34.5; the consensus high and low were RMB 42 and RMB 19.3. This reflects differing views on the pace of overseas and emerging-business expansion. Usage note: the memorandum’s data are as of approximately early September 2026, with the latest disclosures being the 2026 interim report and rating records from early September 2026. Please confirm whether the data correspond to the latest reporting period before use. The consensus target price of RMB 29.15 from 15 analysts and the Tonghuashun six-month figure of RMB 29.61 from nine institutions are based on different samples and periods and are for reference only.

4. Recent News and Announcements

4.1 Second Share Repurchase in 2026: Chairman’s Proposal Approved by the Board

On 2026/7/19, Chairman Zheng Zongqiang proposed a share repurchase to the board in a reminder announcement, Announcement No. Lin 2026-030, disclosed on 2026/7/20. On 2026/8/14, the 14th meeting of the ninth board of directors approved the Proposal on the Plan to Repurchase Shares through Centralized Bidding, with 10 votes in favor, 0 against and 0 abstentions. Shareholder approval was not required.

4.2 Second Share-Repurchase Plan in 2026: RMB 500 Million–RMB 1 Billion, Price Cap of RMB 35.17, for Equity Incentives

On 2026/8/15, the company disclosed the share-repurchase plan announcement and repurchase report, Announcement No. Lin 2026-033. Repurchase amount: no less than RMB 500 million and no more than RMB 1 billion, funded with the company’s own funds. Price cap: RMB 35.17 per share, equivalent to 150% of the average share price over the 30 trading days preceding the board resolution. Purpose: future implementation of equity incentives; if not implemented within 36 months after completion, the unused portion will be cancelled. Term: no more than 12 months from approval by the board, or approximately until 2027/8/14. Directors, supervisors and senior management, the controlling shareholder, the proposer and shareholders holding more than 5% stated that they had no plans to reduce their holdings in the following three or six months, according to the announcement.

4.3 Second Share Repurchase in 2026: Initial Repurchase and Progress through the End of August

On 2026/8/27, the company repurchased 2,869,768 shares for the first time, representing 0.036% of total shares, at RMB 22.97–23.09 per share, with payment of RMB 66,092,492.40 excluding expenses. The announcement, No. Lin 2026-041, was disclosed on 2026/8/28. On 2026/9/3, the company disclosed repurchase progress, Announcement No. Lin 2026-043: as of 2026/8/31, it had cumulatively repurchased 3,869,768 shares through centralized bidding, or approximately 3.8698 million shares, representing 0.048% of total share capital of 8,031,756,156 shares. The transaction price was RMB 22.71–23.09 per share, and total payment was RMB 88,984,979.40, or approximately RMB 88.985 million, excluding expenses.

4.4 Previous Repurchase: Initiated in 2025 and Completed in April 2026, with Differences in Reporting Basis

On 2025/4/15, the company announced a repurchase plan with a maximum amount of RMB 1 billion, a price cap of RMB 34.13 per share, a purpose of equity incentives and a 12-month validity period through 2026/4/13. The source was a single foreign-language financial website, Zonebourse, and should be checked against the official Chinese announcement. According to 21st Century Business Herald/China Fund News on 2026/8/16, the company had completed the repurchase of approximately 22.3033 million shares on April 14, 2026, for approximately RMB 500.5 million, for an employee stock ownership plan or equity incentives. Uncertain point requiring verification: the interim-report basis shows that “the company implemented share repurchases totaling RMB 38.8249 million in the first half of 2026,” which differs materially from the statement that approximately RMB 500.5 million had been repurchased by 2026/4/14. The discrepancy could not be fully verified; the original interim-report notes should be consulted.

4.5 Shares Held in the Special Repurchase Account

As of the share-registration date for the May 2026 annual general meeting, the company had total share capital of 8,031,756,156 shares, of which 45,157,255 shares, or approximately 45.1573 million shares, were held in the special repurchase account and did not carry voting rights. The 2026 interim report also stated that, as of 2026/8/24, total share capital was 8.032 billion shares; after deducting 45.1573 million repurchased shares, 7.987 billion shares were eligible for distribution.

4.6 2026 Interim Report: Revenue of RMB 27.767 Billion, Net Profit Attributable to Shareholders of RMB 3.073 Billion, Interim Dividend of RMB 1.53 per 10 Shares

The report was disclosed on the evening of 2026/8/26 and published on 8/27. Operating revenue was RMB 27.767 billion, up 14.54% year on year; net profit attributable to shareholders was RMB 3.073 billion, up 4.08%; non-recurring-item-adjusted net profit attributable to shareholders was RMB 2.925 billion, up 4.31%; basic EPS was RMB 0.38. Second-quarter net profit attributable to shareholders was approximately RMB 2.351 billion, back-calculated from RMB 721 million in Q1, implying sequential growth of approximately 225%. Gross margin was 25.34%, with one source reporting a year-on-year decline of approximately 1.11 percentage points. The asset-liability ratio was 40.42%, ROE was 5.90%, and net cash flow from operating activities was RMB 591 million, down 78.95% year on year. Total assets were RMB 93.528 billion, down 5.13% from the end of the previous year, and net assets attributable to shareholders were RMB 52.074 billion. Interim dividend: RMB 1.53 per 10 shares, or RMB 0.153 per share, with proposed total cash dividends of RMB 1.222 billion. Dividends plus repurchases totaled RMB 1.261 billion, representing 41.03% of first-half net profit attributable to shareholders; the amount repurchased and cancelled was RMB 0.

4.7 2025 Annual Report and 2026 First-Quarter Results

The 2025 annual report, disclosed on 2026/4/29, reported operating revenue of RMB 66.229 billion, up 14.53% year on year; net profit attributable to shareholders of RMB 8.279 billion, up 8.79%; basic EPS of RMB 1.04; and full-year newly signed contracts of RMB 75.868 billion, up 14.40%. The 2026 first-quarter report showed operating revenue of RMB 9.564 billion, up 7.52%, and net profit attributable to shareholders of RMB 721 million, up 6.04%.

4.8 2026 Operating Targets

At the 2026/5/15 earnings briefing, the company said it aimed to achieve operating revenue of RMB 75 billion in 2026, representing growth of more than 13%, while planned fixed-asset investment would exceed RMB 1.8 billion, nearly doubling year on year. Note: this is management guidance rather than audited data and comes from a single meeting source.

4.9 2025 Annual General Meeting Resolutions

The annual general meeting was held on 2026/5/22, with the announcement issued on 5/23. It approved the 2025 board-of-directors work report, recurring related-party transactions, the Financial Services Agreement with China Electric Power Finance Co., Ltd. and the related-party transaction limits, the 2025 profit-distribution plan and 2026 interim profit-distribution plan, the reappointment of the 2026 auditor, and the director and senior-management compensation-management rules. All proposals passed, with no rejected proposals. The controlling shareholder, State Grid Electric Power Research Institute Co., Ltd., which held 4,570,558,438 shares, abstained from voting on the related-party transaction proposal in accordance with applicable rules.

4.10 Shareholder and Share-Capital Structure Developments

The latest disclosed top-10 shareholders were State Grid Electric Power Research Institute, 56.90%; Hong Kong Securities Clearing Company, 9.61%; China Securities Finance, 2.95%; Shen Guorong, an individual, 2.41%; SSE 50 ETF, 0.95%; and Central Huijin Asset Management, 0.95%, among others. The second share-repurchase announcement in 2026 stated that directors, supervisors and senior management, the controlling shareholder, the proposer and shareholders holding more than 5% had no plans to reduce their holdings in the following three or six months, according to the commitment in the announcement. Gap: this search did not complete a dedicated review of purchases and sales by Shen Guorong and other individuals or institutions, changes in the number of shareholders, or block trades. Accordingly, the complete picture of active purchases and sales during 2026 is not available.

4.11 Regulatory, Policy and Governance Announcements

On 2025/12/13, a series of announcements related to the board of directors, board of supervisors and shareholders’ meeting covered a change of accounting firm; cancellation of the board of supervisors and amendments to the articles of association; entrusted wealth management using idle own funds; changes in directors; completion and termination of fundraising-investment projects and the permanent use of surplus funds to replenish working capital; and the convening of the second extraordinary shareholders’ meeting of 2025. On 2025/10/31, the company announced the repurchase and cancellation of certain granted but unlocked restricted shares under the 2021 restricted-share incentive plan, as well as adjustments to the repurchase quantity and price. It also issued a creditor announcement regarding the repurchase and cancellation of certain restricted shares and the reduction of registered capital. On 2025/9/24, it implemented the 2025 interim dividend and adjusted the repurchase price cap after the interim dividend. Industry-policy background, which affects the company but is also macroeconomic in nature, includes construction of a new power system, strategic opportunities under the 15th Five-Year Plan, ultra-high-voltage transmission, new energy and computing-power/electricity coordination. The company stated that during the 15th Five-Year Plan period it would cultivate strategic emerging industries including artificial intelligence, new energy storage, flexible transmission, power semiconductors, computing-power/electricity coordination and electricity-carbon management.

4.12 Concept Developments: Addition of the “Concentrated Solar Power” Concept

On 2026/9/9, the company was added to the “concentrated solar power” concept because NARI-RELAYS provided an independently controllable integrated primary-and-secondary control system for DCS/DEH/ETS for the Three Gorges Energy Xinjiang Hami 100MW concentrated-solar demonstration project. Note: this is a Tonghuashun concept classification rather than an official company announcement. The information source was an announcement dated 2026/4/30 that was retrospectively classified.

4.13 M&A and Capital Operations

This search found no recent announcement regarding major mergers and acquisitions or external acquisitions. The identified personnel and governance announcements, including changes in directors, cancellation of the board of supervisors and a change of accounting firm, were routine governance matters. For confirmation, the complete list of announcements for 600406 on the Shanghai Stock Exchange should be reviewed individually.

4.14 Data Gaps and Uncertainties

1) Purchases and sales by shareholders, shareholder counts and block-trade details during 2026, for which the dedicated search was not completed; 2) details of recent major contracts and tender wins, for which the dedicated search was not completed. The only available information is the 2025 annual-report disclosure of “RMB 75.868 billion in newly signed contracts for the full year, +14.40%,” together with qualitative descriptions of key projects; 3) the complete list of 600406 announcements on the Shanghai Stock Exchange was not checked individually, so some routine announcements may have been missed; 4) the difference between “RMB 38.8249 million in repurchases during the first half of 2026” and “approximately RMB 500.5 million in the previous repurchase completed by 2026/4/14” remains to be verified; 5) details of the April 2025 repurchase plan, including the RMB 34.13 price cap and validity through 2026/4/13, came from a single source and require verification against the official announcement; 6) the “2026 revenue target of RMB 75 billion” comes from management’s briefing and is not an audited figure or a consensus forecast. Time stamp: “recent” primarily refers to July–September 2026. The latest data are as of 2026/9/3, the date of the repurchase-progress announcement corresponding to the 2026/8/31 position, with an additional concept update dated 2026/9/9.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of the September 11, 2026 close, Guodian NARI exhibited a weak technical structure at low levels, close to support but without a confirmed reversal. The share price was below MA5, MA10, MA20 and longer-term moving averages, MACD was below the zero line, RSI was approximately 36–38, and the share price was close to the lower Bollinger Band. Around RMB 22.10 simultaneously corresponded to the lower Bollinger Band and a recent low, making it an important short-term support zone. If this level fails, support near the 52-week low of RMB 21.26 should be monitored. Major funds had recorded consecutive net outflows recently, with no funding confirmation of a rebound.

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

⚠️ Risk warning: The following is a subjective scenario analysis based on closing data as of September 11, 2026. It does not constitute investment advice or a single-point price forecast.

① Key Technical Levels

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

• Sideways consolidation (relatively higher weight, approximately 60%; this weight is a subjective heuristic judgment based on current technical and funding conditions, not a statistical probability): expected range of approximately RMB 22.10–22.90. Trigger conditions include holding support at RMB 22.10–22.30, trading volume remaining within recent norms, MACD’s negative value not expanding materially, and no new negative industry- or company-specific news. Under this scenario, technical indicators could recover from low levels, but a trend reversal would remain unconfirmed
• Weak downward movement (medium weight; this is a subjective heuristic judgment based on current technical and funding conditions, not a statistical probability): expected range of approximately RMB 21.26–22.10. Trigger conditions include a decisive closing-price break below RMB 22.10, a significant increase in volume when support is broken, continued net outflows from major funds, or continued weakness in the power-equipment sector and broader market. If the 52-week low of RMB 21.26 is also breached, the low-level consolidation structure could further develop into a weak downward trend
• Stronger rebound (low weight but not impossible; this is a subjective heuristic judgment based on current technical and funding conditions, not a statistical probability): expected range of approximately RMB 22.90–23.30. Trigger conditions include reclaiming the RMB 22.60–22.90 resistance zone, daily turnover being significantly higher than recent norms, the MACD histogram continuing to narrow or turning positive, and simultaneous strength in the power-equipment sector or company-specific catalyst news. A break above RMB 22.90 and sustained trading there could lead to further testing of RMB 23.00–23.30. However, with major funds still recording net outflows and the share price not yet above the medium- and long-term moving averages, this should currently be viewed as a technical-recovery scenario rather than confirmation of a trend reversal

③ Funding and Liquidity Background

As of September 11, 2026, the turnover rate was approximately 0.35%. Recent public trading data showed daily turnover rates of approximately 0.28%–0.48%. From September 1 to September 11, disclosed daily turnover was approximately RMB 499 million–856 million. Average trading volume over the most recent 10 trading days was approximately 29.57 million shares, compared with approximately 28.31 million shares on September 11, slightly below the average. As of June 30, 2026, the top 10 tradable shareholders held approximately 5.812 billion shares, representing approximately 72.37%–72.58% of the tradable float. On the same date, approximately 589 institutions held a combined approximately 576 million shares, representing approximately 71.87% of tradable A-shares, down approximately 407 million shares from December 31, 2025, indicating relatively significant net fund selling. The top 10 tradable shareholders included State Grid Electric Power Research Institute Co., Ltd., Hong Kong Securities Clearing Company Limited, a grid-equipment ETF, Guoxin Hongsheng, Huaneng International, state-owned power companies, the company’s repurchase account and insurance funds. The research memorandum could not clearly verify whether public funds, social-security funds or QFII were included among the top 10 shareholders, and no definitive conclusion should be drawn. These shareholder-structure data are as of June 30, 2026 and are subject to a quarterly lag; subsequent purchases and sales, fund rebalancing and secondary-market trading may not yet be reflected. The practical implication is that core and long-term shareholders hold concentrated positions, with some shares trading infrequently, which may reduce daily price impact but limit short-term market depth. If concentrated selling emerges, the price may quickly seek support. Recent net outflows from institutional funds indicate that marginal funding support is temporarily weak.

Observable volume-confirmation signals: if daily turnover exceeds approximately RMB 800 million for consecutive days during the next week and the share price simultaneously recovers RMB 22.90 and holds above it, this could be viewed as a signal to monitor for improved short-term fund participation. If turnover materially exceeds the recent average when RMB 22.10 is breached, the risk of support failure should be viewed as rising.

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

• Monitor whether support at RMB 22.10–22.30 remains effective, particularly whether the share price can stabilize around RMB 22.16; this is an observation framework, not a trading instruction.
• Monitor whether the RMB 22.60–22.90 resistance zone can be broken with volume support; this is an observation framework, not a trading instruction.
• Monitor whether net outflows from major funds narrow; the trend should not be judged solely on the basis of one day’s fund flows; this is an observation framework, not a trading instruction.
• Monitor whether daily turnover can remain above approximately RMB 800 million and occur together with recovery of RMB 22.90; this is an observation framework, not a trading instruction.

The above scenario analysis is based on closing data as of September 11, 2026, together with historical prices and technical-indicator calculations. Short-term share-price performance will also be affected by news flow, fund flows, broader-market conditions and other factors. Technical indicators themselves have lagging characteristics and limitations. This does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and assume the associated investment risks.

6. Industry Structure and Competitor Analysis

7. Risk Factors

• Significant divergence between revenue and profit growth: operating revenue grew 14.54% year on year in the first half of 2026, while net profit attributable to shareholders grew only 4.08%, with gross margin at approximately 25.34%. If the proportion of low-margin businesses continues to rise or cost pressure persists, revenue growth may not translate into comparable profit growth.
• Significant weakening in operating cash flow: net cash flow from operating activities was RMB 591 million in the first half of 2026, down 78.95% year on year. If the pace of order delivery, collections or project settlements does not improve, this could constrain cash available for R&D, fixed-asset investment and shareholder returns.
• Risk of declining profitability in the energy low-carbon business: the segment generated revenue of RMB 16.73 billion in 2025 at a gross margin of 20.21%. Revenue increased to RMB 9.614 billion in the first half of 2026, but gross margin fell to 18.64%. If expansion is accompanied by continued gross-margin declines, the segment could weaken the company’s overall earnings quality.
• Uncertainty over the realization of overseas expansion: overseas revenue was RMB 5.894 billion in the first half of 2026, accounting for 21.23%. Rapid overseas expansion supported revenue, but the timing of delivery, collections and profit recognition from contract signing remains uncertain. Overseas expansion may not immediately translate into profit and cash flow.
• Relatively high concentration in grid intelligence: grid-intelligence revenue was RMB 13.31 billion in the first half of 2026, accounting for 47.92% of company revenue. The company remains substantially dependent on this core business. Changes in grid investment, tendering or project-delivery schedules could have a material effect on overall revenue recognition.
• Execution and effectiveness risks relating to repurchases and equity incentives: the company plans to repurchase RMB 500 million to RMB 1 billion for equity incentives, but cumulative repurchases as of August 31, 2026 totaled approximately RMB 88.90 million, leaving a substantial gap to the plan ceiling. If the repurchase schedule, implementation of the incentive plan or incentive effectiveness falls short of expectations, the impact of these capital operations on employee incentives and operating efficiency may be limited.
• Technical and funding conditions remain weak: as of September 11, 2026, the share price was below multiple major moving averages, MACD was below the zero line, and net outflows from major funds over the preceding 10 days were approximately RMB 494 million. If support near RMB 22.10 fails, the share price could further test the 52-week low near RMB 21.26.
• Differences in the basis of financial and historical data: 2024 operating revenue is reported as both RMB 57.417 billion before adjustment and RMB 57.829 billion after adjustment. There is also an unresolved difference between the previous repurchase amount and the repurchase amount disclosed in the 2026 interim report. Different bases may affect year-on-year analysis, assessment of repurchase progress and valuation comparisons.

8. Conclusion and Outlook

The company’s growth drivers primarily comprise its core grid-intelligence business, expansion of the energy low-carbon and overseas businesses, and the development of businesses related to the new power system, energy storage, flexible transmission, artificial intelligence and computing-power/electricity coordination. Management set a 2026 operating-revenue target of approximately RMB 75 billion, while brokerages forecast 2026 net profit attributable to shareholders of approximately RMB 9.18–9.41 billion. These forecasts reflect institutional or management views, and actual delivery will depend on order conversion, project execution and margin recovery.

The company currently demonstrates strong revenue-expansion capabilities, but profit growth and cash flow are weaker than revenue growth. Gross margin in the energy low-carbon segment fell from 20.21% in 2025 to 18.64% in the first half of 2026, and overall profitability still requires monitoring. Key areas going forward include whether gross margin can stabilize, whether operating cash flow can improve, whether the expansion of overseas and emerging businesses can translate into profit, and the practical impact of repurchases and equity incentives on R&D, delivery and talent efficiency.

From a market-performance perspective, the share price is near the lower end of its 52-week range. RMB 22.10–22.30 is the short-term support zone to monitor, while RMB 22.60–22.90 is the key moving-average resistance zone. Before volume, fund flows and medium- and long-term moving averages improve together, the technical structure is closer to low-level consolidation or weak sideways movement. The company’s future fundamental and valuation performance will depend on the balance between the realization of growth and the pace of recovery in profit and cash flow.

Data Sources

• Guodian NARI (600406) - Compass Market Data
• Guodian NARI (600406) 2026 Interim Management Discussion and Analysis - Securities Star - Guodian NARI (600406) 2026 Interim Management Discussion and Analysis
• Guodian NARI (600406) Operating Analysis_Individual Stock Market_ Tonghuashun Finance
• Guodian NARI 2025 Interim Earnings Briefing
• Guodian NARI (600406) - F10 Information - Compass Market Data - SSE Composite | 3764.15 | -3.05% | RMB 12,464.45 billion | Shenzhen Component | 13706.88 | -5.40% | RMB 14,085.13 billion | CSI 300 | 4529.10 | -3.60% | RMB 9,208.22 billion
• 600406 Guodian NARI
• Guodian NARI (600406)_Company Profile_CFi - | CFi | Market | ▼ | Rankings | ▼ | Watchlist
• Guodian NARI (600406) 2025 Interim Management Discussion and Analysis - Guodian NARI (600406) 2025 Interim Management Discussion and Analysis
• 600406 Guodian NARI - Principal Business Scope
• Guodian NARI (600406)_Company Profile_CFi
• Guodian NARI (600406): Earnings in Line with Expectations; Accelerating Breakthroughs Outside the Grid
• Guodian NARI: 2024 Revenue Reached RMB 57.417 Billion, Up 11.15% Year on Year
• Guodian NARI (600406): Steady Revenue Growth; Overseas Business Growth Strong
• 2024 Annual Report and 2025 First-Quarter Review: Steady Revenue Growth; Strong Overseas Business Growth
• Guodian NARI (600406): Smart Grid Drives Growth; Revenue and Profit Continue to Increase
• 2024 Annual Report and 2025 First-Quarter Review: Maintaining High-Intensity R&D Investment; Results in Line with Market Expectations
• Guodian NARI (600406): Results in Line with Expectations; Continues to Benefit from Improving Grid and Pumped-Storage Equipment Demand
• Guodian NARI (600406): 25Q1 Growth Continues; New Energy and Digital Businesses Are Highlights
• Results in Line with Expectations; Continues to Benefit from Improving Grid and Pumped-Storage Equipment Demand
• Guodian NARI (600406) 2024 Annual Report and 2025 First-Quarter Review: Results in Line with Expectations; Smart-Grid Leader Continues to Advance Steadily - Home > Event Details
• Guodian NARI (600406) 2025 Annual Report and 2026 First-Quarter Review: Steady Earnings Growth; Significant Progress in International Expansion
• Guodian NARI: 2025 Annual Net Profit Attributable to Shareholders Increased 8.79% Year on Year
• Guodian NARI: 2025 Annual Net Profit Attributable to Shareholders Increased 8.79% Year on Year
• Guodian NARI: 2025 Net Profit of RMB 8.279 Billion, Up 8.79%; Proposed Dividend of RMB 4.75 per 10 Shares - Guodian NARI: 2025 Net Profit of RMB 8.279 Billion, Up 8.79%; Proposed Dividend of RMB 4.75 per 10 Shares
• Guodian NARI (600406): Stable Earnings Growth; Strong Order Book
• Guodian NARI: 2025 Net Profit of RMB 8.279 Billion, Up 8.79%; Proposed Dividend of RMB 4.75 per 10 Shares - Hot Topics
• Guodian NARI: 2025 Net Profit of RMB 8.279 Billion, Up 8.79%
• Guodian NARI (600406): Solid Grid Core Business; Overseas and Emerging Businesses Stand Out
• Guodian NARI (600406.SH): 2025 Annual-Report Net Profit of RMB 8.279 Billion, Up 8.79% Year on Year
• Financial Report Express | Guodian NARI’s 2025 Revenue Increased 14.53% but Net Profit Increased Only 8.79%; Higher Financial Expenses Weighed - Securities Star
• Company Announcements_Guodian NARI: 2023 Annual Report_Sina Finance - Industrial Interconnection | Other Expenses | 546,154,819.70 | 23.44 | 486,344,139.84 | 20.38 | 12.30
• [Financial Report Series [Issue 203] Guodian NARI (Updated through 2024 Annual Report) - Published on Snowball · Shanghai](https://xueqiu.com/3613156403/347073151#1)
• Guodian NARI - Industrial Interconnection | Other Expenses | 546,154,819.70 | 23.44 | 486,344,139.84 | 20.38 | 12.30
• [Financial Report Series [Issue 121] Guodian NARI - Published on Snowball](https://xueqiu.com/3613156403/274471366#1)
• Guodian NARI: 2022 Annual Report - A
• <table><tr><td>No.</td><td>Customer Name</td><td>Sales</td><td>Proportion of Annual Total Sales (%)</td><td>Whether Related to the Listed Company</td></tr></table>
• Guodian NARI (600406) - Historical Top-Five Customer Structure and Total Revenue Proportion Data
• Guodian NARI (600406) Principal-Business Analysis Query | Chaguwang
• Guodian NARI: 2022 Net Profit Increased 14.24%; Proposed 10-for-2 Stock Dividend and RMB 3.9 Cash Dividend - Header
• Guodian NARI: 2025 Annual Report - Total 351,428,660.03 17,491,612.22 11,426,390.19 182,255.50 357,676,137.56
• Guodian NARI (600406.SH): 2026 Interim-Report Net Profit of RMB 3.073 Billion, Up 4.08% Year on Year
• Guodian NARI: Newly Signed Contracts Growing Rapidly; International Business Accelerating
• Guodian NARI: First-Half 2026 Net Profit of RMB 3.073 Billion, Up 4.08%; Proposed Dividend of RMB 1.53 per 10 Shares - Guodian NARI: First-Half 2026 Net Profit of RMB 3.073 Billion, Up 4.08%; Proposed Dividend of RMB 1.53 per 10 Shares
• Guodian NARI: First-Half Net Profit Attributable to Shareholders Increased 4.08% Year on Year
• Guodian NARI: First-Half 2026 Net Profit Attributable to Shareholders Increased 4.08% Year on Year
• Financial Report Express | Guodian NARI Increased Revenue but Not Profit in First-Half 2026; Operating Cash Flow Plunged Nearly 80%; Financial Expenses Turned Positive - Securities Star
• Guodian NARI (600406) 2026 Interim-Report Review: Grid Intelligence Growing Steadily; International and Emerging Businesses Accelerating
• Guodian NARI First-Half Revenue of RMB 27.767 Billion, Up 14.54%; Net Profit Attributable to Shareholders of RMB 3.073 Billion, Up 4.08%; Gross Margin Down 1.11 Percentage Points
• Guodian NARI (600406.SH) First-Half Net Profit of RMB 3.073 Billion, Up 4.08%
• Guodian NARI (600406.SH) First-Half Net Profit of RMB 3.073 Billion, Up 4.08%
• Guodian NARI (600406)_Company Profile_CFi
• Guodian NARI (600406)_Company Profile_CFi - | Guodian NARI (600406) Company Profile
• Guodian NARI (600406) Fund Flows_Individual Stock Market_Tonghuashun Finance
• Guodian NARI (600406.SH): 2024 Annual-Report Net Profit of RMB 7.610 Billion, Up 6.06% Year on Year
• 600406 | NARI Technology Co. Ltd. A Annual Income Statement | MarketWatch - 600406 China: Shanghai
• NARI Technology Co., Ltd. (600406.SS) Income Statement – Yahoo Finance
• China Securities Journal - Guodian NARI Technology Co., Ltd. - | Page B504: Information Disclosure | Previous Next
• Bank of China (Hong Kong) Limited - Company Information
• China Securities Journal - Guodian NARI Technology Co., Ltd. - Company Code: 600406 Company Name: Guodian NARI
• NARI Technology (SHA:600406) Financials & Income Statement - Fundamental Charts Launch Get 1 Month Free + 20% Off Your First Year
• Financial Information 600406 | NARI Tech - Investing.com
• NARI Technology Co Ltd (600406) Income Statement - Investing.com PH
• Income Statement of NARI Technology Co Ltd (600406) - Investing.com Portugal
• Guodian NARI (600406): Overseas and Outside-Grid Businesses Provide Strong Support; 2026 Revenue and Profit Targets Continue to Increase
• Guodian NARI 2025 Net Profit Increased 8.79% Year on Year; Proposed Cash Dividend of Nearly RMB 5 Billion
• Guodian NARI (600406) Financial Analysis - Guodian NARI
• Guodian NARI (600406) Earnings Overview_Data Center_East Money
• Guodian NARI (600406) F10 - CFi - | CFi | Market | ▼ | Rankings | ▼ | Watchlist
• Guodian NARI (600406) Income Statement_Guodian NARI (600406) Principal-Business Profit_Securities Star
• Guodian NARI (600406)_Profit Distribution Statement_CFi
• Guodian NARI (600406) Key Indicators_Guodian NARI (600406) Financial Indicators and Analysis_Securities Star
• Historical Performance Reports of Listed Companies - Guodian NARI (600406)
• Guodian NARI (600406) - Income Statement - Stock Market Center
• Energy Storage Boom + Grid Core Business, Yet Unable to Withstand Declines in Both Profit and Cash Flow? | Guodian NARI Interim-Report Breakdown
• Guodian NARI (600406)_Panoramic Data_P5W
• Guodian NARI (600406): Three Drivers—Domestic Grid, Outside-Grid and Overseas
• Guodian NARI (600406) Analyst Consensus Estimates_Market Sentiment_Investing.com
• NARI Technology Co Ltd Consensus Estimates (600406) - Investing.com
• Institutional Ratings | Huatai Securities Rates Guodian NARI “Buy”
• Institutional Investment Ratings - Stocks - Sina Finance - Stock Rating Records
• Institutional Ratings | Three Institutions Update Guodian NARI Rating
• Institutional Ratings | Western Securities Rates Guodian NARI “Buy” Without a Target Price
• Research-Report Indicator Express - Research Reports - Stock Channel - Securities Star
• Institutional Ratings | Huatai Securities Rates Guodian NARI “Buy”
• Guodian NARI: 2025 Annual Report - Derivative Financial Liabilities 5,373,658.35 1,976,480.52 -3,397,177.83 -4,031,346.86
• SHANGHAI STOCK EXCHANGE
• (600406) “NARI Technology Co., Ltd.” Announcement on Resolutions of the 9th Meeting of the 9th Board of Directors
• Announcement on Resolutions of the 2025 Annual General Meeting of Guodian NARI Technology Co., Ltd.
• NARI Technology Co., Ltd. (SHSE: 600406) Announces Repurchase of Its Shares for RMB 1 Billion - 11413e9da4822c8ada0fb
• Concept Developments | Guodian NARI Added to the “Concentrated Solar Power” Concept
• NARI Technology Co., Ltd. Publishes Annual Results for the Year Ended December 31, 2025 - c2846973f
• China Securities Journal - Guodian NARI Technology Co., Ltd. Announcement on the First Repurchase of Company Shares through Centralized Bidding
• Guodian NARI: Announcement on Progress of Share Repurchases through Centralized Bidding _ Guodian NARI (600406) _ Announcement Text
• Announcement on the First Repurchase of Company Shares by Guodian NARI Technology Co., Ltd. through Centralized Bidding - Market
• Chinese Stock Repurchase Plan - Guodian NARI - August 15, 2026 - Tonghuashun
• Guodian NARI: Announcement on the First Repurchase of Company Shares through Centralized Bidding
• Guodian NARI Technology Co., Ltd. Announcement on the Share-Repurchase Plan through Centralized Bidding and Repurchase Report
• Guodian NARI: Announcement on the Share-Repurchase Plan through Centralized Bidding and Repurchase Report _ Guodian NARI (600406) _ Announcement Text
• Company Announcements_Guodian NARI: Announcement on the Share-Repurchase Plan through Centralized Bidding and Repurchase Report_Sina Finance - Loading, Please Wait
• Good News! 600406, Up to RMB 1 Billion! Another Group of A-Share Companies Announces Repurchases
• 600406, Proposed Repurchase of Up to RMB 1 Billion! Another Group of A-Share Companies Announces Collectively
• Announcement on Progress of Guodian NARI Technology Co., Ltd. Share Repurchases through Centralized Bidding
• Guodian NARI: Summary of Announcement on Progress of Share Repurchases through Centralized Bidding - Securities Star
• Guodian NARI: Cumulative Repurchase of Approximately 3.87 Million Shares
• Guodian NARI (600406.SH): Cumulative Repurchase of 3.8698 Million Company Shares
• Guodian NARI (600406.SH): Cumulative Repurchase of 3.8698 Million Company Shares
• Guodian NARI: Announcement on Progress of Share Repurchases through Centralized Bidding
• Guodian NARI (600406.SH): Cumulative Repurchase of 3.8698 Million Company Shares
• Guodian NARI Company Announcements
• https://finance.sina.com.cn/jjxw/2026-09-03/doc-iniqnyae1041444.shtml.md
• Guodian NARI: First-Half 2026 Net Profit of RMB 3.073 Billion, Up 4.08% Year on Year
• Guodian NARI (600406.SH): 2026 Interim-Report Net Profit of RMB 3.073 Billion, Up 4.08% Year on Year
• Guodian NARI: First-Half Revenue and Profit Both Increased; Overseas and Energy-Storage Businesses as Dual Drivers
• Guodian NARI First-Half Revenue of RMB 27.767 Billion; Proposed Cash Dividend of RMB 0.153 per Share
• Guodian NARI: Advantage Businesses Continue to Improve; Emerging Businesses Accelerate Growth
• Guodian NARI (600406)_Stock Quote, Market Homepage_CFi
• SH.600406 Guodian NARI NARI TECH - A-Share Real-Time Quote RT Quote - Detailed Quote - etnet Hong Kong News, Finance and Lifestyle Platform
• NARI Technology Co Ltd Stock Technical Analysis (600406)
• Guodian NARI (600406) Historical Data: Historical Quotes, Prices and Charts_Investing.com
• Guodian NARI Up 0.18%, Turnover RMB 499 Million, Major-Fund Net Inflow over Five Days -RMB 167 Million_Sina Finance
• Guodian NARI 600406 Stock DDX Real-Time Fund Trend and Major-Fund Flow Data
• Guodian NARI (600406) - Tradable Shareholders - Stock Market Center, Sohu Securities
• Guodian NARI (600406) Individual Stock Analysis_Fundamental Diagnosis_Tonghuashun Finance

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. Some moving-average, MACD and RSI data are intraday figures and may have changed slightly after the close; timing differences may exist. Specific data should be based on the company’s official announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and assume the associated investment risks.