Report date: 2026-09-13 | Price data: Close on 2026-09-11 (some technical indicators are earlier snapshots, such as agu888 on 2026-09-08, Investing.com snapshots on 2026-08-31/2026-09-04, Xueqiu on 2026-06-05, and MSN on 2026-07-10), individually noted for each item. | Sources: 30 | Report engine: v1 (v2 available)

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Close	4.57 (+1.11% on the day; -0.87% over 5 sessions; -1.51% over 20 sessions)
Market cap	CNY 78.72 billion
P/E (TTM)	9.37x (59th percentile over 5.2 years)
P/B (MRQ)	0.53x (0th percentile over 5.2 years)
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52-week range	4.5 (2026-09-16) – 7.09 (2026-03-13)
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Bollinger bands (20,2)	Upper 4.7 / middle 4.6 / lower 4.5
Volume	0.86x the 20-day average
One-week range (about 68% coverage)	4.49 – 4.63 (-1.8% ~ +1.3%)
One-week range (about 95% coverage)	4.44 – 4.87 (-2.8% ~ +6.6%)

As of the 2026-09-30 close; calculated from daily price data (adjusted prices) and refreshed automatically each trading day. The one-week range reflects historical volatility only and is not a forecast. The report below was written on 2026-09-13; its prices and short-term scenarios reflect data at that time.

Power Construction Corporation of China (601669)

Individual Stock Analysis Report | Industry: Construction & Decoration — Infrastructure Construction | Report Date: September 13, 2026 | 2026-09-11 Close (some technical indicators are snapshots from earlier dates, e.g., agu888 is 2026-09-08, some Investing.com snapshots are 2026-08-31/2026-09-04, Xueqiu is 2026-06-05, MSN is 2026-07-10), individually annotated in each item

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

I. Core Summary

The most decision-relevant characteristics of PowerChina currently are "revenue still growing, profits continuously declining, cash flow under pressure": FY2025 revenue was approximately RMB 645.604 billion, up 1.85% YoY; net profit attributable to parent was RMB 10.007 billion, down 16.75% YoY. 2026Q1 revenue was approximately RMB 145.074 billion, up 1.75% YoY; net profit attributable to parent was RMB 1.951 billion, down 25.56% YoY. According to the company's 2026 semi-annual data disclosed at its earnings briefing, H1 revenue was RMB 289.679 billion, net profit attributable to parent was RMB 3.821 billion, gross margin was 11.02%, and net operating cash flow was -RMB 46.021 billion, indicating that "revenue growth without profit growth" and periodic working capital occupation pressure have not yet notably eased.

The company's business is primarily engineering contracting and survey & design, with approximately 90% of revenue coming from engineering construction with gross margins of approximately 9%–10%; power investment & operations and new energy businesses account for a relatively low revenue share but have gross margins of approximately 35%–43%, and are the primary source of profit structure improvement. In 2025, new contracts in energy & power totaled RMB 841.605 billion, accounting for 63.12% of total new contracts, up 10.33% YoY; overseas new contracts grew 27.84% YoY; as of end-2025, controlled grid-connected installed capacity reached 40.14 GW, with energy & power, overseas business, and operating asset expansion constituting medium-to-long-term growth drivers.

Profit quality remains affected by declining gross margins, impairments, and financial expenses. FY2025 gross margin was 12.43%, down 0.76 percentage points YoY; net profit attributable to parent excluding non-recurring items was RMB 8.423 billion, down 24.10% YoY; total asset and credit impairments in 2024 were approximately RMB 9.004 billion, reflecting downstream collection and asset quality pressures. The company's accounts receivable scale is large — RMB 125.902 billion at end-2024; operating cash flow was negative in H1 2025, and H1 2026 operating cash flow data was also negative.

As of September 11, 2026, the company's stock closed at RMB 4.60, with total market cap of approximately RMB 79.24 billion, dynamic P/E of approximately 10.37x, and P/B of approximately 0.54x, in a below-book-value state. Technically, the stock price is below MA5, MA10, MA20, and MA60, with Bollinger Bands running between the middle and lower rails, indicating a weak short-term trend; RMB 4.57–4.60 is the near-term support zone, and RMB 4.63–4.73 is the dense resistance zone. Low valuation coexisting with weak technicals suggests the market is more focused on whether profit recovery, cash flow improvement, and corporate value enhancement measures can be implemented.

II. Company Overview

2.1 Basic Information

Item	Content
Stock Ticker	601669.SH
Company Short Name	PowerChina
English Name	Power Construction Corp of China (PowerChina / Sinohydro)
Listing Date	2011-10-18
Total Shares	Approximately 17.226 billion shares (of which approximately 13.072 billion tradable A-shares, approximately 4.155 billion restricted A-shares)
Industry	Civil Engineering & Construction / Construction (SW classification: Construction & Decoration — Infrastructure Construction)
Controlling Shareholder	Power Construction Corporation of China, Ltd., holding 53.05% (as of 2025-09-30)
Top Five Shareholders	Power Construction Corporation of China, Ltd. 53.05%, Taiping Life 3.02%, China Securities Finance 2.51%, Hong Kong Securities Clearing 1.49%, China State-Owned Enterprise Mixed Ownership Reform Fund 1.14% (shareholder data as of 2025-09-30, source: etnet company profile page updated 2025-06-30)
Chairman	Ding Yanzhang
Board Secretary	Sun De'an
Registered/Office Address	Haidian District, Beijing
Company Positioning	The company positions itself as "Building clean energy, creating green environments, serving smart cities," aiming to become a globally competitive, quality-and-efficiency-oriented world-class comprehensive construction enterprise in energy & power, water resources & environment, and infrastructure; core business directions are "Water, Energy, City, Digital"
Industry Position (self-described)	The company describes itself as "the world's largest power design firm and contractor," and one of China's earliest central SOEs to "go global" with a high degree of internationalization
Data Cut-off Note	Multiple sources indicate the latest disclosed data is FY2025 annual report + 2026 semi-annual/quarterly reports; China Fortune Land F10 update date 2026-08-28; retrieval time approximately mid-2026

2.2 Main Business and Product Layout

Engineering Contracting & Survey Design: Core business with integrated planning, survey, design, and construction capabilities, focused on energy & power (hydropower/pumped storage/wind & solar/energy storage/nuclear conventional island/UHV grids/thermal power), water resources & environment (water conservancy, water utilities, water environment treatment, seawater desalination), and urban infrastructure (buildings, rail transit, highways, municipal works, airports & ports). FY2025 revenue RMB 590.5 billion, accounting for 90.21%, gross margin 10.24%; H1 2026 revenue RMB 261.8 billion, accounting for 88.88%, gross margin 9.02%
Power Investment & Operations: Strategic transformation business centered on clean energy including wind, solar, and hydropower, with the strategy of "controlling scale, optimizing structure, highlighting efficiency, preventing risks." FY2025 revenue RMB 25.47 billion, accounting for 3.89%, gross margin 41.60%; H1 2026 revenue RMB 13.18 billion, accounting for 4.47%, gross margin 35.37%
Equipment Manufacturing & Leasing (including materials procurement & sales): Primarily sand & gravel aggregate mining, production and sales; design, R&D, production and sales of specialized water conservancy & hydropower equipment; engineering equipment leasing
Digital Business (newly established/incubated): Computing infrastructure, intelligent construction, "source-grid-load-storage-computing" integration
Other Businesses: FY2025 revenue RMB 27.47 billion, accounting for 4.20%, gross margin 29.05%; H1 2026 revenue RMB 13.85 billion, accounting for 4.70%, gross margin 23.35%
New Energy Business: FY2025 revenue RMB 11.17 billion, accounting for 1.71%, gross margin 43.00%; H1 2026 revenue RMB 5.722 billion, accounting for 1.94%, gross margin 35.46%
By Region: FY2025 domestic revenue RMB 532.4 billion, accounting for 82.47%, gross margin 12.51%; overseas revenue RMB 111.0 billion, accounting for 17.19%, gross margin 11.22%. H1 2026 domestic revenue RMB 231.7 billion, accounting for 79.98%, gross margin 11.01%; overseas revenue RMB 57.11 billion, accounting for 19.71%, gross margin 10.53%

2.3 Industry Chain Position and Cost-Profit Structure

PowerChina is essentially an EPC/general contracting-oriented enterprise, with approximately 90% of revenue from engineering contracting (gross margin only 9%–10%). Power investment & operations and new energy together account for only approximately 5%–6% of revenue but have gross margins as high as 35%–43%, contributing a disproportionate share of profits (e.g., in 2025, power investment & operations + new energy together contributed approximately 19% of main business profit). This is a typical "low-margin main business as foundation, high-margin operating business as enhancer" structure. The following analysis covers five dimensions: upstream cost side, downstream client side, working capital occupation, gross margin trends, and smile curve positioning.

The company is essentially an EPC/general contracting-oriented enterprise, with the largest cost items being engineering subcontracting and materials (steel, cement, sand & gravel aggregate, electromechanical equipment) and labor. As the general contractor, it has strong bargaining power over downstream (subcontractors) but is essentially a price taker upstream (commodity material prices).
Important structural advantage: The company produces its own sand & gravel aggregate (aggregate is a core raw material for concrete) through its "Equipment Manufacturing & Leasing/Materials Procurement" segment, forming a degree of vertical integration and cost hedging capability.
To be supplemented/uncertain: This retrieval did not obtain first-hand breakdown data on cost composition (proportions of materials/subcontracting/labor in operating costs), nor exact annual figures for sand & gravel aggregate resource reserves (mining rights/capacity). Relevant figures should be based on the company's annual report "Operating Cost Composition" and "Sand & Gravel Aggregate" business disclosures; this memo refrains from listing them to avoid misquotation.
Clients are primarily governments and local urban investment/water conservancy platforms (water conservancy, water utilities, municipal works, watershed management), large power central SOEs and grid companies (State Grid, power generation groups), and "Belt and Road" overseas owners/host country governments.
Bargaining dynamics: Downstream owners in the construction contracting industry (especially government/central SOE owners) are dominant, and contractors generally face a structural disadvantage of "elongated collection cycles and occupied payment terms"; the company has also noted in recent annual and quarterly reports "delayed owner payments," "increased collection pressure," and "impairment provision pressure."
To be supplemented/uncertain: The exact figure for the combined revenue share of the top five customers under the company's disclosed methodology was not found; this memo cannot provide a customer concentration figure. This data comes from a single source and could not be cross-verified; refer to the latest annual report for specifics. (To be verified; note: do not apply other companies' data)
Accounts Receivable: RMB 125.902 billion at end-2024, up 18.45% YoY (growth rate significantly higher than revenue growth of +4.05%), accounts receivable/revenue approximately 19.9%, accounts receivable/net profit attributable to parent approximately 10.5x; Tonghuashun gives a five-year average accounts receivable turnover ratio of approximately 5.46x/year. Other items at end-2024: accounts receivable & notes RMB 127.38 billion, inventory + contract assets RMB 169.76 billion, accounts payable & notes RMB 280.2 billion, advances from customers + contract liabilities RMB 129.01 billion; cash collection ratio 106.23%, cash payment ratio 101.31%. Operating cash flow: FY2024 net operating cash flow RMB 24.546 billion (RMB 2.281 billion more inflow YoY), Q4 single-quarter net inflow RMB 71.471 billion (year-end concentrated collection is common in the construction industry); H1 2025 operating cash flow was -RMB 51.1 billion (large mid-year net outflow is common in the industry). Conclusive evidence: accounts payable scale (approximately RMB 280.2 billion) far exceeds accounts receivable & notes (approximately RMB 127.4 billion), indicating the company's ability to occupy upstream subcontractor/supplier funds, partially offsetting passive occupation by downstream owners — i.e., the company is occupied downstream and transfers occupation upstream, a typical "middle layer" capital structure.
Customer Concentration: The exact figure for the combined revenue share of the top five customers under the company's disclosed methodology was not found; this memo cannot provide a customer concentration figure. This data comes from a single source and could not be cross-verified; refer to the latest annual report for specifics. (To be verified; note: do not apply other companies' data)

Net Margin

Year	Gross Margin	Net Margin	Brief Explanation
2020	14.23%	3.17% (Note a methodology)	High-margin year; industry competition and cost pressures not yet fully manifested
2021	12.07%	Approximately 2.0%–2.6% (methodology discrepancies exist; Note a methodology approximately 2.63%)	Sharp gross margin decline: intensified industry competition, rising raw material (steel, cement, etc.) costs, engineering contracting main business gross margin compressed
2022	12.20%–12.21%	2.74% (Note a methodology)	Gross margin roughly flat; order structure began to optimize
2023	13.22%–13.23%	2.81% (Note a methodology)	Gross margin recovery: order structure optimization, increased share of power investment & operations (high margin)
2024	13.18%–13.19%	2.49% (Note a methodology)	Gross margin stable while net profit attributable to parent declined 7.21%: primarily due to large increase in impairment losses — total asset + credit impairments in 2024 approximately RMB 9.004 billion (RMB 2.315 billion more YoY), corresponding to downstream collection/asset quality pressures, a direct manifestation of "upstream costs controllable, downstream collection deteriorating"
2025	12.42%–12.43%	2.03% (Note a methodology) / 1.55% (Note b methodology, net profit attributable to parent/revenue)	Both gross margin and net profit attributable to parent declined (net profit attributable to parent -16.75%): intensified industry competition + power market reform led to notable gross margin decline in new energy operations (power investment & operations gross margin approximately 47.4% in 2023 → approximately 44.9% in 2024 → 41.6% in 2025 → 35.4% in H1 2026)

PowerChina is positioned at the "midstream, leaning toward construction general contracting" position on the smile curve — approximately 90% of revenue is low-margin (9%–10%) engineering construction, relying on scale and full industry chain integration (planning + design + construction + operations + equipment) to compete; the real profit elasticity comes from the small-share power investment & operations/new energy assets (gross margin 35%–43%) and vertical integration businesses such as sand & gravel aggregate — a hybrid structure of "upstream resources/self-manufactured equipment with high margins, midstream construction with thin margins, downstream operating assets with high margins but proportion yet to increase." The main drivers for future gross margin improvement are: ① continued increase in the share of high-margin power operations/new energy assets; ② increased output of self-produced upstream resources such as sand & gravel aggregate; ③ increased share of high-margin overseas orders — rather than expecting a recovery in traditional engineering contracting gross margin (which faces long-term pressure).

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Reporting Period	Revenue	YoY	Net Profit Attributable to Parent	YoY
FY2025	RMB 646.237 billion (total operating revenue methodology); alternatively RMB 645.604 billion (operating revenue methodology), approximately RMB 630 million difference between the two	+1.81% (total operating revenue methodology); +1.85% (operating revenue methodology)	Net profit attributable to parent RMB 10.007 billion; net profit attributable to parent excluding non-recurring items RMB 8.423 billion	Net profit attributable to parent -16.75% YoY; net profit attributable to parent excluding non-recurring items -24.10% YoY
2026Q1	RMB 145.237 billion (total operating revenue methodology); RMB 145.074 billion (operating revenue methodology)	+1.74% (total operating revenue methodology); +1.75% (operating revenue methodology)	Net profit attributable to parent RMB 1.951 billion; net profit attributable to parent excluding non-recurring items RMB 1.896 billion	Net profit attributable to parent -25.56% YoY; net profit attributable to parent excluding non-recurring items -27.04% YoY
FY2024 (comparative base period reference)	RMB 633.685 billion (Note: FY2024 adjusted operating revenue in the FY2025 annual report was RMB 633.865 billion)	+4.07%	Net profit attributable to parent RMB 12.015 billion; net profit attributable to parent excluding non-recurring items RMB 11.097 billion	Net profit attributable to parent -7.21% YoY; net profit attributable to parent excluding non-recurring items -5.26% YoY

Data source is public reports and brokerage research paraphrase (China Securities Journal, Cailianshe, East Money, Stockstar, Sina Finance, etc.), not original exchange announcements. FY2025 revenue has two methodologies: total operating revenue of RMB 646.237 billion and operating revenue of RMB 645.604 billion, differing by approximately RMB 630 million; prior-year data was restated due to accounting standard changes, and the methodology must be noted when citing. FY2025 gross margin 12.43% (-0.76pct YoY), net margin 2.03% (-0.47pct), debt-to-asset ratio 79.59%, net operating cash flow RMB 30.70 billion (+25.1% YoY); dividend RMB 1.0552 per 10 shares (tax inclusive), totaling approximately RMB 1.818 billion. 2026Q1 total profit RMB 3.453 billion, -18.96% YoY. FY2024 EPS approximately RMB 0.63 (basic)/RMB 0.6975 (fully diluted, East Money methodology).

Both FY2025 and 2026Q1 exhibit "revenue growth without profit growth": revenue grew slightly positive, but net profit attributable to parent declined 16.75% and 25.56% respectively, with non-recurring-adjusted net profit declining even more. FY2025 performance decline was related to gross margin pressure (-0.76pct), new energy segment gross margin decline (-9.30pct), and surging financial expenses, though operating cash flow improving 25.1% YoY was a bright spot. 2026Q1 performance pressure continued, creating tension with the market's consensus expectation of "resuming slight growth" for full-year 2026. Note that actual 2025 net profit was significantly below earlier expectations from multiple institutions (which had forecast RMB 11.0–12.5 billion), indicating significant historical forecast deviation.

3.2 Earnings Forecast

2026 consensus comes from Tonghuashun iFinD (approximately 2026-05-07); 8 institutions published research reports in the past six months, with net profit forecasts ranging from a high of RMB 11.580 billion to a low of RMB 10.046 billion, average RMB 10.565 billion. Multi-year forecasts primarily come from: Kaiyuan Securities (2026-04-24, Buy, forecasting 2026-2028 net profit attributable to parent of RMB 10.80/11.80/12.90 billion, EPS RMB 0.63/0.69/0.75, and stating downward revision of 2026-2027 earnings forecasts from previous RMB 14.98/15.71 billion); Caitong Securities (2026-04-26, Overweight, forecasting 2026-2028 net profit attributable to parent of RMB 9.5/9.9/10.2 billion, with a more cautious view even expecting continued negative growth in 2026). GF Securities' 2026-03-16 report forecast 2025-2027 net profit attributable to parent of RMB 11.3/11.6/12.2 billion; its 2025 forecast deviated significantly from the actual RMB 10.007 billion and has been deemed outdated, not recommended for use. Institutional forecasts diverge notably (2026E range RMB 9.5–11.58 billion), and given large historical forecast deviations for 2025, forecast reliability is limited.

Year	Revenue	Net Profit Attributable to Parent	Net Profit Growth Rate	Earnings Per Share (EPS)
2026E	Data missing (research reports did not provide explicit revenue forecast figures)	Consensus average RMB 10.565 billion (range: high RMB 11.580 billion, low RMB 10.046 billion)	+5.57% YoY vs. 2025 (RMB 10.007 billion)	Data missing (consensus did not provide uniform EPS; Kaiyuan Securities forecasts 2026E EPS of RMB 0.63)
2027E	Data missing	Kaiyuan Securities forecasts RMB 11.80 billion; Caitong Securities forecasts RMB 9.9 billion; institutional forecasts diverge notably	Data missing (Caitong Securities forecasts +3.4% vs. its 2026 forecast)	Kaiyuan Securities forecasts RMB 0.69
2028E	Data missing	Kaiyuan Securities forecasts RMB 12.90 billion; Caitong Securities forecasts RMB 10.2 billion	Data missing (Caitong Securities forecasts +3.8% vs. its 2027 forecast)	Kaiyuan Securities forecasts RMB 0.75

3.3 Valuation Levels and Institutional Ratings

Institution	Rating	Date	Remarks
Changjiang Securities (Zhang Chi)	Buy	2026-05-07	2026E net profit RMB 10.150 billion, no target price given
Guolian Minsheng (Wu Huidong)	Recommended	2026-05-03	2026E net profit RMB 10.131 billion, no target price given
Guotai Haitong (Han Qicheng)	Overweight	2026-04-28	2026E net profit RMB 10.046 billion, target price RMB 8.16; per rating page, multiple reports from 2026-05 to 2026-09 gave target prices of RMB 8.05–8.16, Buy/Overweight
China Galaxy (Long Tianguang)	Recommended	2026-04-27	2026E net profit RMB 11.070 billion, no target price given
Western Securities (Yang Jingmei)	Buy	2026-04-27	2026E net profit RMB 10.252 billion, no target price given
Guosheng Securities (He Yaxuan)	Buy	2026-04-24	2026E net profit RMB 10.493 billion, no target price given
Kaiyuan Securities (Qi Dong)	Buy	2026-04-24	Forecasts 2026-2028 net profit attributable to parent of RMB 10.80/11.80/12.90 billion, EPS RMB 0.63/0.69/0.75, corresponding PE 9.2/8.4/7.7x (based on then stock price of RMB 5.78); downward revision of 2026-2027 earnings forecasts
GF Securities (Geng Pengzhi)	Buy	2026-03-15	2026E net profit RMB 11.580 billion, target price RMB 7.26–7.37; its 2026-03-16 report forecast 2025-2027 net profit of RMB 11.3/11.6/12.2 billion, assigning 11x PE for 2026, fair value RMB 7.37/share, but 2025 forecast deviated significantly from actual, now outdated
Caitong Securities (Wang Tao)	Overweight	2026-04-26	Forecasts 2026-2028 net profit attributable to parent of RMB 9.5/9.9/10.2 billion, yoy -4.7%/+3.4%/+3.8%, corresponding PE 10.7/10.4/10x, more cautious view
Consensus (Tonghuashun iFinD)	5 Buy, 2 Recommended, 1 Overweight	2026-05-07	8 institutions in past six months, average target price RMB 8.16; ratings overall positive but target prices have been revised downward from early 2025
Economic Observer Composite	Data missing (specific rating distribution not listed)	2026-05-04	Composite target price RMB 8.00, 15 institutions published earnings forecasts; recent 5-day main force capital net outflow, margin trading balance ratio 5.18%, fund holding ratio only 0.16%

As of the data cited in the research memo (stock price approximately RMB 5.78, consistent across multiple sources as of January 2026 and 2026-04-24), total market cap approximately RMB 99.567 billion, tradable market cap approximately RMB 75.55 billion, total shares 17.226 billion. PE(TTM) approximately 9.29x as of 2026-01-16, rising to approximately 10.31x by 2026-05-04, reflecting the impact of annual report net profit decline on TTM; in the historical median range and moderate-to-low within the industry. PB approximately 0.68x in January 2026; another source indicates 0.60–0.68x range (depending on net asset methodology); etnet shows net assets per share of approximately RMB 8.026 (methodology may be outdated); if calculated using end-2024 net assets attributable to parent of RMB 165.557 billion / 17.226 billion shares ≈ RMB 9.61/share, PB ≈ 0.60, indicating methodology uncertainty here; recommend recalculating PB based on net assets attributable to parent disclosed in the annual report. Based on consensus 2026E net profit of RMB 10.565 billion, corresponding PE at current market cap is approximately 9.4x; research reports generally give a 9.2–11x PE range as fair valuation. Note: all price/market cap figures are from the January–May 2026 range, not the latest trading day closing prices; if the latest valuation is needed, re-verify with real-time quotes; some rating pages show updates through 2026-09, possibly indicating later research reports and the 2026 interim report; this retrieval could not fully verify 2026 semi-annual report data (East Money F10 shows 2026-06-30 main business composition but complete semi-annual net profit data was not obtained). Key figures (especially revenue methodology, EPS, PB) should be based on original annual/quarterly report PDFs from Cninfo/SSE.

IV. Recent News and Announcements

4.1 Target Confirmation: 601669 is Power Construction Corporation of China (PowerChina)

601669 = Power Construction Corporation of China, short name "PowerChina," listed on the SSE Main Board, industry "Civil Engineering & Construction/Construction & Decoration — Infrastructure Construction," actual controller is SASAC of the State Council, controlling shareholder is Power Construction Corporation of China, Ltd. (holding 53.05%, as of 2026-06-30). The company is a central SOE primarily engaged in engineering contracting and survey & design (approximately 90% of revenue), power investment & operations, equipment manufacturing & leasing, etc., with business spanning over 130 countries and regions globally. Sources: SSE announcement PDF, East Money main business composition page, etnet/AAstocks company profile pages.

4.2 2026 Semi-Annual Report Disclosure and Key Financial Data

The 2026 semi-annual report was approved by the 20th meeting of the 4th Board of Directors on August 27, 2026, and disclosed on August 29. Key data (source: SSE earnings briefing page): H1 2026 revenue RMB 289.679 billion; net profit attributable to parent RMB 3.821 billion; net profit attributable to parent excluding non-recurring items RMB 3.613 billion; basic EPS RMB 0.2048/share; gross margin 11.02%; return on equity 2.40%; debt-to-asset ratio 80.61%; net operating cash flow -RMB 46.021 billion. Limitation: The above profit/cash flow data comes from a single source (the company's earnings briefing page) and was not further cross-verified; refer to the formal semi-annual report for accuracy. No 2026 semi-annual "earnings preview/preliminary increase or decrease" type announcements were retrieved — the company appears to directly disclose periodic reports without earnings previews.

4.3 FY2025 Annual Report and 2025 Operating Data

The FY2025 annual report was disclosed on April 24, 2026: FY2025 net profit attributable to parent RMB 10.007 billion (RMB 10,007,143,581.45), of which net profit attributable to ordinary shareholders RMB 9.089 billion; proposed cash dividend of RMB 1.0552 per 10 shares based on total shares of 17,226,159,334, totaling approximately RMB 1.818 billion, representing 20% of net profit attributable to ordinary shareholders. 2025 new contracts: energy & power RMB 841.605 billion (63.12% share, +10.33% YoY), water resources & environment RMB 111.787 billion, overseas new contracts RMB 286.315 billion (+27.84% YoY); as of end-2025, controlled grid-connected installed capacity 40.14 GW (+21.17% YoY). Source: China Bond Information Network/Securities Daily e-paper annual report summary.

4.4 Announcement of Resolutions of the 20th Meeting of the 4th Board of Directors (Provisional 2026-039)

Meeting date 2026-08-27, disclosed August 29 (source: Securities Daily e-paper, stockstar). Resolutions approved include: 2026 semi-annual report; approval to use no more than RMB 3.963 billion of idle raised funds to temporarily supplement working capital, for a period not exceeding 12 months; the Shenzhen-Huizhou Intercity fundraising project (Shenzhen to Huizhou Intercity Qianhai Free Trade Zone to Pingshan Section Project Lot 1) expected usable date extended from August 2026 to December 2029; change in use of remaining raised funds from the "Vietnam Ca Mau No. 1 350MW Offshore Wind EPC Project" (including interest, approximately RMB 595 million) to entirely permanently supplement working capital (still subject to shareholders' meeting review); approval of the company's "15th Five-Year Plan" development plan; 2026 annual investment plan amount reduced from RMB 71.27 billion to RMB 59.38 billion; revision of nine information disclosure and other policies; proposal to convene the first extraordinary general meeting of 2026. Cross-verification sources: China Fund News (2026-08-28), Securities Daily e-paper, stockstar all reported with consistent amounts/dates.

4.5 Notice on Convening the First Extraordinary General Meeting of 2026 (Announcement No. 2026-043)

Disclosed 2026-09-03: Meeting scheduled for September 18, 2026 at 15:00, with the sole agenda item being "Proposal on Changing the Use Direction of Remaining Raised Funds from the Vietnam Ca Mau No. 1 350MW Offshore Wind EPC Project," with separate vote counting for minority investors. Meeting materials disclosed on 2026-09-09. Sources: Shanghai Securities News, China Securities Journal, East Money announcements, Sina Finance.

4.6 Announcement on Using Part of Idle Raised Funds to Temporarily Supplement Working Capital

In conjunction with the Board resolution approved on August 27, 2026, approval to use no more than RMB 3.963 billion of idle raised funds to temporarily supplement working capital, for a period not exceeding 12 months. Note: The change in use of Vietnam Ca Mau offshore wind EPC fundraising and the Shenzhen-Huizhou Intercity extension are changes in raised fund use/project extensions, typically reflecting overseas project progress or funding arrangement adjustments, but not equivalent to major changes in main business operations.

4.7 Buyback Updates: No Formal Buyback Plan Announcement Retrieved for 2026, but Buyback Special Securities Account Exists

No formal share buyback plan or buyback progress announcement published by the company in 2026 was retrieved. However, two points are noteworthy: (a) In the top ten tradable shareholders list as of March 31, 2026, "Power Construction Corporation of China Buyback Special Securities Account" appeared with approximately 153 million shares (1.00% of tradable shares), marked as "new" (source: askci.com). The existence of this account suggests a prior buyback arrangement may have existed, but no corresponding buyback announcement was cross-verified in this retrieval — marked as uncertain, requiring further verification. (b) On the investor relations platform, investors repeatedly requested company buybacks/controlling shareholder increases. The company's responses on 2026-08-28, 2026-06-11, 2026-05-11, etc., were consistent: resolving the long-term "below-book-value" issue is a core task; the "Valuation Enhancement Plan" was disclosed in April 2025; "will comprehensively assess buyback, increase and other related plans based on its own cash flow, operating investment, and state-owned asset management requirements, and will disclose timely if any" — i.e., as of August 2026, no implementation commitment has been made. Sources: Stockstar, Sina/163 and other reprints.

4.8 Shareholder Increase/Decrease Plans: Tibet Tianlu Co., Ltd. Plans to Change 41.7694 Million Shares

Source: Tonghuashun major shareholder increase/decrease plans. Announced 2026-01-24, Tibet Tianlu Co., Ltd. (other shareholder) plans to change 41.7694 million shares (0.24% of total shares) during 2026-01-22 to 2027-01-21 via centralized bidding. The "change direction" field shows decrease (2), but the "purpose of increase/decrease" states "participating in the subscription of PowerChina's non-public offering with own funds, optimizing the company's asset structure" — the direction and purpose statements are contradictory, from a single source without cross-verification, to be used with caution.

4.9 Major Shareholder Holdings (2026 Semi-Annual Report, as of 2026-06-30)

Announcement date 2026-08-29. Controlling shareholder Power Construction Corporation of China 9,138,371,913 shares (53.05%) unchanged; followed by Taiping Life (2.24%, 386,649,856 shares, unchanged this period), Hong Kong Securities Clearing (1.22%, approximately 12.40 million shares less than Q1), Guangzhou Industrial Investment (0.32%), Mixed Reform Fund (0.28%), etc. Source: Sohu/Tiangu Network top ten shareholder data.

4.10 2026Q1 Institutional Holdings Changes

As of 2026-03-31 (announcement date 2026-04-30), institutions notably reduced positions: Taiping Life -25.572% vs. prior period (-132.8 million shares), Hong Kong Securities Clearing -2.921%, Huatai-PineBridge CSI 300 ETF -51.245%, Mixed Reform Fund -75.000%, E Fund CSI 300 ETF -52.519%. Source: Sohu Stock top ten tradable shareholders. The above increases/decreases are quarterly holding disclosures, not proactive increase/decrease announcements.

4.11 Corporate Governance Updates (Late 2025 Retrospective): Abolition of Supervisory Board

2025-11-18: The first extraordinary general meeting of 2025 approved the revision of the "Articles of Association" and abolition of the supervisory board (abolishing the supervisory board is a common action in central SOE governance reform).

4.12 Corporate Governance Updates (Late 2025 Retrospective): Senior Management Appointment and Donation

2025-12-15/16: The 15th meeting of the 4th Board of Directors appointed Wang Xiaojun as General Manager, Jian Shangyou as Assistant to the General Manager, and nominated Wang Xiaojun as director candidate; approved the 2026 annual related-party transaction plan and financial services framework agreement; approved a donation of HKD 10 million to support Hong Kong Tai Po fire relief and reconstruction. Source: China Securities Journal e-paper (2025-12-16).

4.13 Daily Related-Party Transaction Announcement (Provisional 2025-073)

2025-12-16: Published "Daily Related-Party Transaction Announcement" (Provisional 2025-073), estimating 2025 and 2026 annual related-party transactions.

4.14 Resolutions of the Second Extraordinary General Meeting of 2025 (Announcement No. 2026-001)

2025-12-31: The second extraordinary general meeting of 2025 approved the election of directors, the 2026 annual related-party transaction plan and agreement signing, the financial services framework agreement with PowerChina Group Finance Company, etc. (Announcement No. 2026-001, disclosed 2026-01-01). Sources: China Securities Journal, stockstar.

4.15 Change of Annual Audit Report Signing Accountants

2025-10-31: BDO China Shu Lun Pan Certified Public Accountants changed the company's annual audit report signing accountants (from Guo Shunxi, Huang Yilong to Huang Yilong, Liu Xu).

4.16 Project Award: Xinjiang Silk Road International Health City Plot #4 Phase I Project

2025-12-24: Won the bid for "Xinjiang Silk Road International Health City Plot #4 Phase I Project," with a contract amount of RMB 1.27 billion (source: Tonghuashun bid information, single source).

4.17 Valuation Enhancement Plan

2025-04: The Board approved and disclosed the "Valuation Enhancement Plan" (addressing long-term below-book-value status).

4.18 Industry Policy Environment (Background, Not Company-Specific Announcements)

National water network construction, "dual carbon" goals, pumped storage development and construction management measures, new energy on-grid tariff market reform (NDRC "Notice on Deepening New Energy On-Grid Tariff Market Reform"), etc., are all cited by the company's annual reports as business drivers (source: 2024/2025 annual report summaries). No regulatory penalties, investigations, delisting risks, or other negative announcements specific to 601669 were retrieved for 2026; the 2025 annual report explicitly states "the company had no major litigation or arbitration matters this year."

4.19 M&A/Capital Operations

This retrieval round found no major M&A or asset restructuring announcements at the company level in 2026; main capital operations centered on changes in raised fund use (Vietnam Ca Mau project), investment plan reduction (RMB 71.27 billion → RMB 59.38 billion), and related-party financial services framework agreements.

4.20 Uncertainties and Data Limitations

1) 2026 semi-annual financial data (revenue RMB 289.679 billion, net profit attributable to parent RMB 3.821 billion, etc.) comes from a single source (earnings briefing page), not cross-verified. 2) "Buyback special securities account" 153 million shares (2026Q1) is from a single data source (askci), and is in tension with the company's statement that "no buyback plan has been launched yet"; the corresponding buyback announcement and whether the buyback has been completed/cancelled need verification. 3) The direction field (decrease) and purpose statement (subscribing to non-public offering) in Tibet Tianlu's increase/decrease plan are contradictory, from a single source (Tonghuashun) only, to be used with caution. 4) Top ten shareholders/tradable shareholders increases/decreases are quarterly disclosure figures, not representing actual trading pace during the period. 5) Retrieval was limited by tool step count; could not open SSE original announcement PDFs one by one to verify all amounts word by word; recommend referring to original texts on Cninfo/SSE website. 6) Time note: This memo's "as of" is approximately early September 2026 (latest visible announcement disclosure date 2026-09-09). Reference stock price: Sina Finance 2026-09-03 report page shows PowerChina at approximately RMB 4.61 (down 0.65% that day); investor interaction mentions PB of approximately 0.59x (below book value); market cap methodologies differ across sources (etnet approximately RMB 84.57 billion vs. AAstocks approximately RMB 99.2 billion), both are third-party pages with different as-of dates, not adopted as precise values.

V. Stock Price Trend and Technical Analysis

5.1 Price Overview

Indicator	Value
Closing Price	RMB 4.60 (down RMB 0.07, -1.50%)
Open / Previous Close	RMB 4.66 / RMB 4.67
High / Low	RMB 4.67 / RMB 4.59
Amplitude / Volume Ratio	1.71% / 1.35
Volume / Turnover	1,084,900 lots / RMB 500 million (East Money alternatively shows RMB 499.5 million)
Turnover Rate	0.83%
Limit Up / Down Price	RMB 5.14 / RMB 4.20 (based on previous close of RMB 4.67)
Total Shares / Total Market Cap	17.226 billion shares / approximately RMB 79.24 billion
Tradable Shares / Tradable Market Cap	13.072 billion shares / approximately RMB 60.13 billion
Dynamic P/E / Dynamic P/B	10.37 / 0.54 (stcn, 2026-09-11)
P/E (TTM) / P/B / P/E (Static)	9.43 / 0.54 / 7.92 (Baidu Stock, Sina Finance, noted as last updated 2026-09-11)
52-Week High / Low (multi-source divergence)	Sina/Baidu methodology 7.08 / 4.52; Investing.com methodology 4.58 ~ 7.19; comprehensive judgment: high approximately 7.0–7.2 range, low approximately 4.5–4.6 range

5.2 Technical Indicators

Indicator	Value	Brief Interpretation
MA5 / MA10 / MA20 (Jiufang Zhitou, 2026-09-11 close)	4.65 / 4.63 / 4.64	Stock price 4.60 below MA5/10/20, short-term MAs tangled and weak; Jiufang Zhitou notes a death triangle formed on August 14, upper MA resistance at RMB 4.83
MA5 / MA10 / MA20 / MA60 / MA120 (agu888, 2026-09-08 snapshot)	4.63 / 4.64 / 4.65 / 4.73 / 5.11	MAs in bearish alignment, stock price below MA60 and longer-cycle MAs, medium-term structure weak
Bollinger Bands BOLL(20,2) (agu888, 2026-09-08 snapshot)	Upper 4.73 / Middle 4.65 / Lower 4.57	Stock price 4.60 running between middle and lower rails, near lower rail, short-term weak
MACD / RSI / BOLL / WR (East Money Qian Gu Qian Ping, 2026-09-11 17:00)	All currently no clear signals	Momentum indicators in neutral zone, no clear directional signal formed
Institutional Participation / Main Force Cost (East Money Qian Gu Qian Ping, 2026-09-11)	Institutional participation 39.28% (moderate control); latest 1-day main force cost RMB 4.60, latest 20-day main force cost RMB 4.64	Main force cost close to current price, short-term upside and downside both limited
Composite Score and Industry Ranking (East Money Qian Gu Qian Ping)	Composite score 67.07; ranked 16th among 44 in infrastructure construction industry	Score and industry ranking in the middle, no significant leading or lagging
Model Statistics (East Money Qian Gu Qian Ping, sample 15,291)	Next-day rise probability 49.42%, average change +0.20%; 5-day rise probability 49.79%, average change +0.09%	Model statistics near 50/50, for reference only, not the basis for this report's scenarios
RSI(14) / MAs (Investing.com, multi-date snapshots)	08-31 snapshot RSI=36.65 (Sell), 09-04 snapshot RSI=51.23 (Neutral); MA200 between 4.73–5.20 varies greatly by date	Overall rating Strong Sell, but this source's MA200 value varies greatly by date; not adopting a single value, only for trend reference
TradingView Daily Technical Rating	Strong Sell (1-week, 1-month ratings also Strong Sell)	Consistent with bearish MA alignment, short-term weak
MACD / RSI / KDJ Precise Readings	Could not cross-verify precise values at the same time point from authoritative sources	Data missing; body text provides only qualitative description without specific figures

As of the 2026-09-11 close, PowerChina closed at RMB 4.60, down 1.50%, with turnover of RMB 500 million and turnover rate of 0.83%. Total market cap approximately RMB 79.24 billion, dynamic P/E 10.37, dynamic P/B 0.54, with PB in deep below-book-value territory. Technically, the stock price is below MA5/MA10/MA20 (RMB 4.63–4.65), also below MA60 (RMB 4.73) and longer-cycle MAs, with MAs in bearish alignment or tangling weakly; Bollinger lower rail RMB 4.57, middle rail RMB 4.65, upper rail RMB 4.73, with the stock price running between middle and lower rails. On momentum indicators, East Money Qian Gu Qian Ping shows MACD, RSI, BOLL, WR all currently without clear signals; TradingView daily rating is Strong Sell. On the capital side, Sina Finance capital flow snapshot shows main force capital net outflow of approximately RMB 53.78 million; East Money Qian Gu Qian Ping indicates signs of main force capital outflow; margin balance RMB 3.056 billion (2026-09-10), margin financing balance RMB 3.042 billion, representing 4.98% of tradable market cap, slightly declining MoM. Recent single-day turnover is typically approximately RMB 290–500 million, with turnover rate approximately 0.48%–1.07%, relatively low turnover. Special note: 52-week high/low diverge across data sources (Sina/Baidu methodology 7.08/4.52, Investing.com methodology 4.58–7.19), treated as ranges in this report; technical indicator time points are mixed across multiple dates from 8-31 to 9-11 and different data providers; MACD/RSI/KDJ precise values could not be cross-verified at the same time point from authoritative sources; main force capital data comes from a single source (Sina capital flow) intraday snapshot, not cross-verified with a second source; shareholder structure did not obtain official full top ten tradable shareholder table and shareholder account numbers, only Investing.com third-party aggregation with unclear report date; structure may have changed.

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

⚠️ Risk Warning: The following content is solely a subjective scenario analysis based on current technical and capital flow data, not statistical probability, does not constitute investment advice, and does not constitute a guarantee of future actual trends.

① Key Technical Levels

Level	Range	Description
Short-term Resistance	RMB 4.63 ~ 4.73	MA5/MA10/MA20 (RMB 4.63–4.65) + Bollinger middle rail RMB 4.65, Bollinger upper rail RMB 4.73, MA60 RMB 4.73 densely overlapping. Only by holding above RMB 4.63–4.65 with volume can it challenge RMB 4.73.
Secondary Resistance	Around RMB 4.83	Upper MA resistance of RMB 4.83 noted by Jiufang Zhitou. After breaking RMB 4.73, if volume cooperates, could test this level.
First Support	RMB 4.57 ~ 4.60	Bollinger lower rail RMB 4.57, recent low RMB 4.59, main force latest 1-day cost RMB 4.60. An effective break below RMB 4.57 opens space to test strong support.
Strong Support	RMB 4.52 ~ 4.55	52-week low range (Sina/TTM methodology RMB 4.52; Investing methodology RMB 4.58, taking lower bound of range). After breaking, further downside toward lower historical low range.

② Next Week Scenarios (Subjective Weights, Not Statistical Probability)

Consolidation (relatively higher weight, approximately 50% (subjective heuristic judgment, not statistical probability)): Stock price fluctuates narrowly between RMB 4.57–4.65, turnover maintained at 0.5%–1%, turnover at normal levels of RMB 300–500 million. Trigger conditions: no new news, sector overall sideways, volume not notably increased.
Weaker Downside (medium weight, approximately 30% (subjective heuristic judgment, not statistical probability)): If it breaks below RMB 4.57 with increased turnover, may test RMB 4.52–4.55 strong support zone. Trigger conditions: main force capital continues net outflow (extending 9-11 net outflow trend), broader market or infrastructure sector weakens, margin positions continue slight reduction.
Rebound Strengthening (lower weight, approximately 20% (subjective heuristic judgment, not statistical probability)): If it stabilizes above RMB 4.65 with volume and breaks RMB 4.73, could test RMB 4.83 resistance. Trigger conditions: single-day turnover notably increases, sector strengthens in sync, or order/policy catalysts emerge.

③ Capital and Liquidity Background

Turnover rate 0.83% (2026-09-11), recent normal range approximately 0.5%–1.1%, relatively low turnover; single-day turnover normal range approximately RMB 290–500 million (2026-09-07 turnover only RMB 291 million, turnover rate 0.48%; 09-11 rose to RMB 500 million). For a target with total market cap of approximately RMB 79.2 billion, intraday liquidity is adequate, but low turnover means upside requires incremental capital to drive, and short-term selling pressure is digested slowly. Main force capital net outflow that day approximately RMB 53.78 million (single source Sina capital flow snapshot, not cross-verified with second source), margin financing balance RMB 3.042 billion (2026-09-10, 4.98% of tradable market cap, -0.32% MoM); margin position size is not small with slight net selling that day; watch leverage capital movements. On shareholder structure, Investing.com shows public fund/ETF holdings of approximately 5% (total 860 million shares, one of the main holders being Huatai-PineBridge CSI 300 ETF at 0.83%), but this data has unclear report date and may lag by one or more quarters; structure may have changed; this retrieval did not obtain the official full top ten tradable shareholder table and shareholder account numbers, nor verified the latest holding ratio of the controlling shareholder (PowerChina Group, central SOE background).

If single-day turnover continues to expand above RMB 800 million (approximately 1.5–2x the recent normal upper bound of RMB 500 million) accompanied by stock price holding above RMB 4.65, it can be viewed as a capital entry signal; conversely, if turnover shrinks below RMB 300 million while stock price weakens, the weight of the weaker scenario increases.

④ Points to Watch (Observation Thoughts Only, Not Trading Instructions)

Whether the upper RMB 4.63–4.73 dense MA resistance band can be broken with volume is key to whether this round can strengthen (observation thought, not trading instruction).
Whether the two support levels below — RMB 4.57 (Bollinger lower rail) and RMB 4.52–4.55 (52-week low zone) — hold or fail determines whether the weaker scenario materializes (observation thought, not trading instruction).
Volume signal: Watch whether single-day turnover can expand above RMB 800 million (capital entry) or shrink below RMB 300 million (increased观望) (observation thought, not trading instruction).
Capital side: Watch whether main force capital net flow turns from outflow to inflow, and whether margin balance stops falling and rebounds (observation thought, not trading instruction).

The above scenario analysis is based on 2026-09-11 closing data and historical price, technical indicator calculations; short-term stock prices will also be affected by multiple factors including news, capital flows, and broader market environment; technical indicators themselves have lag and limitations, do not constitute a guarantee of future actual trends, and do not constitute buy or sell recommendations; please make independent judgments based on the latest market information and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

PowerChina is one of the "Eight (or Nine) Major Construction Central SOEs." The nine major construction central SOEs combined revenue in 2025 was approximately RMB 6.78 trillion (-4.60% YoY), combined net profit approximately RMB 120 billion (-22.38% YoY), with the industry overall showing "total contraction, profit pressure, structural divergence." Tier classification: China State Construction is first tier (2025 revenue approximately RMB 2.08 trillion); China Railway and China Railway Construction are second tier (both with quarterly revenue exceeding RMB 230 billion); China Communications Construction, PowerChina, and China Energy Engineering are third tier (quarterly revenue in the RMB 100–160 billion range). PowerChina's differentiated positioning is "global energy & power construction leader," with 2025 new energy & power contracts of RMB 841.605 billion (63.12% of total new contracts, +10.33% YoY); 2026Q1 energy & power new contracts RMB 211.4 billion (+17.3%), overseas new contracts +70.9% YoY. Sources: Mysteel 2026-04-27, 2025 annual report management discussion, The Paper 2026-05-19.

6.2 Competitive Landscape

Nine major construction central SOEs combined revenue in 2025 approximately RMB 6.78 trillion (-4.60% YoY), combined net profit approximately RMB 120 billion (-22.38% YoY), industry overall "total contraction, profit pressure, structural divergence." (Source: Mysteel 2026-04-27)
Tier structure: China State Construction is first tier (2025 revenue approximately RMB 2.08 trillion); China Railway and China Railway Construction are second tier (both with quarterly revenue exceeding RMB 230 billion); China Communications Construction, PowerChina, and China Energy Engineering are third tier (quarterly revenue in the RMB 100–160 billion range).
PowerChina's differentiated positioning: "Global energy & power construction leader," with 2025 new energy & power contracts of RMB 841.605 billion (63.12% of total new contracts, +10.33% YoY); 2026Q1 energy & power new contracts RMB 211.4 billion (+17.3%), overseas new contracts +70.9% YoY. (Source: 2025 annual report management discussion, The Paper 2026-05-19)
Comparison with China Energy Engineering (601868): Both benefit from new energy power construction tailwinds; both achieved positive revenue growth in 2025 and 2026Q1 (PowerChina +1.85%/+1.8%, Energy Engineering +3.71%/+1.6%); however, PowerChina's scale is approximately 1.4x that of Energy Engineering, and PowerChina's "water resources & environment (water conservancy)" is its unique strength (2025 new water conservancy, water utilities, and water environment contracts approximately RMB 111.787 billion). The two companies' 2026Q1 net profit attributable to parent declines were approximately -25.56% (PowerChina) and -9.75% (Energy Engineering), respectively.
2025 new contract structure: Energy & power RMB 841.605 billion (63.12% share, +10.33%); water resources & environment RMB 111.787 billion; urban infrastructure RMB 276.206 billion; digital/computing-related "new contracts nearly RMB 50 billion" (cumulative digital orders since the "14th Five-Year Plan" exceeding RMB 90 billion, including Hebei Huazhang Xuanhua Computing Hub Zones 1–6 totaling RMB 20.4 billion).
Strategic emerging industries: Building a "4+N" system (new energy storage, integrated energy, computing infrastructure, intelligent construction); the company states strategic emerging industry new contract share has exceeded 50%.
January–October 2025 new contracts totaled RMB 957.979 billion (+0.95% YoY), of which hydropower +48.18%, wind power +39.74%, solar power -34.80%, thermal power -42.24%, water conservancy -25.06%. (Announcement No. Provisional 2025-070, 2025-11-20)

6.3 Major Competitors

Company	Positioning	Description
China State Construction (601668)	Building construction + real estate + infrastructure integrated, largest scale	2025 revenue approximately RMB 2.08 trillion (-4.81%), net profit attributable to parent RMB 39.069 billion (-15.42%)
China Railway (601390)	Comprehensive infrastructure primarily railway/urban rail, highways	2025 revenue RMB 1,090.626 billion (-5.77%, alternatively -5.76%), net profit attributable to parent RMB 22.892 billion (-17.91%)
China Railway Construction (601186)	Primarily railway/highway engineering	2025 revenue RMB 1,029.784 billion (-3.50%), net profit attributable to parent RMB 18.363 billion (-17.34%)
China Communications Construction (601800)	Ports/waterways/highways, strong overseas	2025 revenue approximately -5.29% YoY, net profit attributable to parent declined significantly (-36.92%)
PowerChina (601669)	Energy & power + water conservancy & hydropower construction leader, unique dual advantage of "understanding water + energy"	2025 revenue RMB 645.604 billion (+1.85%), net profit attributable to parent RMB 10.007 billion (-16.75%)
China Energy Engineering (601868)	Energy & power engineering + integrated energy services, most directly comparable	2025 revenue RMB 452.930 billion (+3.71%), net profit attributable to parent RMB 5.840 billion (-30.44%)
China Chemical (601117)	Chemical/coal chemical engineering	2025 revenue approximately +1.88% YoY, net profit attributable to parent positive growth
MCC (601618)	Metallurgical engineering	2025 revenue approximately -17.51% YoY, net profit attributable to parent approximately -80.41% YoY

The above 2025 revenue/profit comparison table comes from media aggregation of listed company announcements, secondary compilation; absolute values should be based on each company's formal annual report. Key points of direct comparison with China Energy Engineering (601868): Both benefit from new energy power construction tailwinds; both achieved positive revenue growth in 2025 and 2026Q1 (PowerChina +1.85%/+1.8%, Energy Engineering +3.71%/+1.6%); however, PowerChina's scale is approximately 1.4x that of Energy Engineering, and PowerChina's "water resources & environment (water conservancy)" is its unique strength (2025 new water conservancy, water utilities, and water environment contracts approximately RMB 111.787 billion). The two companies' 2026Q1 net profit attributable to parent declines were approximately -25.56% (PowerChina) and -9.75% (Energy Engineering), respectively. (Sources: Mysteel 2026-04-27, Yicai/Sina 2026-04-21, The Paper 2026-05-19)

VII. Risk Warnings

The engineering contracting main business accounts for approximately 90% of revenue but has gross margins of only approximately 9%–10%; if construction market competition intensifies, steel, cement, and subcontracting costs rise, or low-margin order share increases, order growth may continue to manifest as revenue growth rather than profit growth.
The company's downstream clients include governments, local urban investment platforms, water conservancy platforms, large power central SOEs, and overseas owners; there are risks of elongated collection cycles and delayed owner payments. Accounts receivable reached RMB 125.902 billion at end-2024, with total asset and credit impairments of approximately RMB 9.004 billion; if collections continue to deteriorate, it may further erode net profit attributable to parent.
Operating cash flow is highly volatile: -RMB 51.1 billion in H1 2025, -RMB 46.021 billion in H1 2026 per earnings briefing disclosure; with the debt-to-asset ratio rising to 80.61% in H1 2026, continued working capital occupation may increase liquidity management and financing cost pressures.
Although power investment & operations and new energy businesses have relatively high gross margins, their gross margins have declined from 41.60% and 43.00% in 2025 to 35.37% and 35.46% in H1 2026, respectively; new energy on-grid tariff market reform and power market trading may continue to compress operating asset profitability.
The company's overseas new contracts are growing rapidly, with 2025 overseas new contracts up 27.84% YoY, but overseas projects face risks including host country policy, exchange rates, financing, project execution, and owner credit; the remaining raised funds from the Vietnam Ca Mau No. 1 350MW Offshore Wind EPC Project are proposed to be changed to permanently supplement working capital; subsequent funding arrangements and execution progress of the project still need attention.
The company has extended the expected usable date of the Shenzhen-Huizhou Intercity fundraising project to December 2029, and reduced the 2026 annual investment plan from RMB 71.27 billion to RMB 59.38 billion; if project delays, investment pace adjustments, or capital expenditure returns fall short of expectations, it may affect future business delivery and capital use efficiency.
There is significant divergence in the company's profit forecasts, with 2026 institutional net profit attributable to parent forecasts ranging from approximately RMB 10.046 billion to RMB 11.580 billion, and some institutions' prior 2025 earnings forecasts were notably higher than actual results; if gross margins, impairments, or financial expenses continue to deviate from expectations, profit recovery and valuation judgments may be revised downward again.
As of September 11, 2026, the stock price is below multiple short-to-medium-term MAs, with RMB 4.57 near the Bollinger lower rail support and RMB 4.52–4.55 as a stronger support zone; if it breaks below the relevant zone with increased volume, technical weakness may continue. The company's long-term below-book-value issue has not been resolved through a clear buyback or increase plan, and valuation recovery is uncertain.

VIII. Conclusion and Outlook

PowerChina's growth logic primarily comes from energy & power construction orders, overseas markets, water conservancy & water environment, and structural expansion of power investment & operations. Energy & power new contracts continue to grow rapidly, overseas new contract growth is high, and the company possesses comprehensive capabilities in energy & power, water conservancy & hydropower, integrated design and construction, and equipment manufacturing, which helps it undertake new energy, pumped storage, water network, and computing infrastructure-related projects. However, since engineering contracting still accounts for the vast majority of revenue, whether order growth can translate into profit depends on project gross margins, settlement collections, and impairment control, rather than solely on contract scale.

Short-term performance recovery remains uncertain. H1 2026 data shows pressure on revenue, profit margins, and operating cash flow, and power investment & operations gross margin also declined from 41.60% in 2025 to 35.37% in H1 2026. The company reduced its 2026 annual investment plan from RMB 71.27 billion to RMB 59.38 billion, while proposing to permanently supplement working capital with approximately RMB 595 million of remaining raised funds from the Vietnam Ca Mau No. 1 Offshore Wind EPC Project, and extended the Shenzhen-Huizhou Intercity project expected usable date to December 2029; these changes require continuous observation in conjunction with subsequent project execution, capital expenditure, and cash flow performance.

Market consensus forecasts for 2026 net profit attributable to parent average RMB 10.565 billion, only approximately 5.57% growth vs. 2025, but different institutions' forecast ranges are approximately RMB 10.046 billion to RMB 11.580 billion, and historical forecasts were notably higher than actual results, indicating limited certainty of profit recovery. Future observation focuses include whether engineering main business gross margin stops declining, whether receivables and contract asset turnover improves, whether operating cash flow can turn positive, whether the share of high-margin operating businesses can increase, and whether the company's valuation enhancement plan for long-term below-book-value status forms clear, verifiable implementation progress.

Data Sources

Reports are generated by AI from public online information and may contain errors or outdated information. They are for research only, not investment advice. Verify material facts against company filings and authoritative sources.