Baoding Tianwei Baobian Electric Co Ltd

Baobian Electric released its 2026 interim report, with net profit attributable to the parent company of 134 million yuan, an increase of 58.29 million yuan compared with the same period last year, up 77.34% year on year, marking three consecutive years of growth. The company's total operating revenue was 3.846 billion yuan, up 28.43% year on year, also growing for three consecutive years. Net cash outflow from operating activities was 387 million yuan, narrowing by 238 million yuan compared with the same period last year. The company's latest asset-liability ratio was 86.60%, down 2.76 percentage points from the same period last year; gross margin was 12.22%, and ROE was 13.63%, up 2.50 percentage points year on year.

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.

Baoding Tianwei Baobian Electric has released an earnings forecast, expecting net profit attributable to owners of the parent company for the first half of 2026 to reach 133 million yuan, a year-on-year increase of 76.47%. The profit growth is mainly driven by continued expansion of power grid infrastructure investment, ample order backlog, and gradual product deliveries, leading to a significant year-on-year rise in operating revenue. Net profit for the second quarter is expected to be 73 million yuan, up 23% from the 60 million yuan recorded in the first quarter.