Dalian Insulator Group Co Ltd

Dalian Insulator released its 2026 semi-annual report, achieving operating revenue of 864 million yuan, up 48.59% year on year, and net profit attributable to shareholders of the listed company of 155 million yuan, up 232.18% year on year. The company plans to distribute a cash dividend of 0.36 yuan per 10 shares, tax included, to all shareholders. Second-quarter net profit was 95 million yuan, first-quarter net profit was 60 million yuan, and second-quarter net profit rose 60% quarter on quarter.

The central government has explicitly designated the new-type power grid as a key investment direction under the 15th Five-Year Plan, with planned investment exceeding 5 trillion yuan. Of this, State Grid is expected to invest 4 trillion yuan, an increase of about 40 percent compared with the 14th Five-Year Plan period. Catalysed by the policy, A-share grid-related sectors surged across the board on 3 August, with the grid equipment index showing active performance. Jiuxing Electric led the gains with a 20 percent rise, while Baili Electric, Great Wall Electric, and Huijintong were among multiple stocks that hit their daily limit up. Grid equipment companies that have already disclosed interim earnings forecasts showed clear divergence. Dalian Insulator, Fanfan Steel Structure, and Baobian Electric benefited from full order books for ultra-high-voltage projects and achieved high growth, whereas Sanxing Electric and Great Wall Electric were dragged down by factors such as high raw material prices, declining bidding prices, and exchange losses, resulting in profit declines or even losses. Institutions’ analysis points out that there is typically a six- to nine-month time lag from grid investment tenders to revenue recognition. Ultra-high-voltage, distribution equipment, new-type energy storage, as well as digital and intelligent infrastructure such as smart grids and computing-power coordination, are expected to benefit from this round of policy dividends.

Dalian Insulator announced that its wholly-owned subsidiary, Daci Material, has been recommended as a winning bidder for the third batch of device materials for State Grid's 2026 power transmission and transformation projects, the third batch of materials for ultra-high voltage projects, and the third batch of substation equipment for power transmission and transformation projects. The pre-winning bids for porcelain insulators and post insulators total approximately 57.7 million yuan, accounting for 3.24% of the company's audited total operating revenue for 2025.

Dalian Insulator has issued a profit forecast, projecting net profit attributable to shareholders of the listed company for the first half of 2026 at 140 million to 180 million yuan, representing a year-on-year increase of 200.55% to 286.43%. The profit growth is mainly driven by demand release from ultra-high voltage projects, recovery in overseas markets, and concentrated order recognition, which together boost revenue and profit. Net profit for the second quarter is estimated at 80 million to 120 million yuan, up 35% to 102% quarter-on-quarter.