Citic Securities Company Limited has released a research report noting that data from the State Grid's new-generation e-commerce platform shows recent announcements of the winning bidder candidates for the third batch of ultra-high voltage (UHV) equipment procurement for 2026 projects and the third batch of substation equipment (including cables) for power transmission and transformation projects. The report suggests focusing on the domestic demand-driven power grid sector following a significant decline, with a particular emphasis on leading domestic high-voltage power equipment companies that already hold 2025 high-voltage substation orders and are now seeing the release of 2026 UHV tenders.
Unlike the latter stages of the previous UHV market cycle, where a surge of large-scale order announcements led to peak sentiment, the current sustained release of UHV orders is favorable for stabilizing and lifting the share prices of leading high-voltage companies currently at low levels.
The key points from Citic Securities Company Limited are as follows:
Third Batch UHV Awards Maintain High Growth Momentum
The total awarded amount for the third batch of UHV equipment winning bidder candidates for State Grid's 2026 projects is RMB 108.72 billion. The cumulative awarded amount for the first three batches this year has reached RMB 292.61 billion, which has substantially surpassed the full-year 2024 total of RMB 220.62 billion, with the first three batches of 2024 amounting to RMB 37.80 billion. This batch involves approximately 10 UHV and back-to-back interconnection projects, with key new additions being the Shaanxi-Henan ±800kV UHV DC transmission project and the Shandong-Jiangsu back-to-back interconnection project. UHV tendering this year is characterized by "multiple projects being successively launched, with AC, DC, and back-to-back projects creating a synergistic effect."
Core UHV Equipment Maintains a Favorable, Highly Concentrated Market Structure
In the third UHV procurement batch, converter valves, converter transformers, and gas-insulated switchgear ranked as the top three product categories by demand, with procurement amounts of RMB 40.22 billion, RMB 35.45 billion, and RMB 7.26 billion, respectively. In terms of awards to listed companies, China XD Electric Co., Ltd., TBEA Co., Ltd., XJ Electric Co., Ltd., NARI Technology Co., Ltd., and Pinggao Group Co., Ltd. secured awards of RMB 26.32 billion, RMB 23.12 billion, RMB 12.45 billion, RMB 7.56 billion, and RMB 7.50 billion, respectively. The combined share of the top five companies is approximately 70.77%, indicating the UHV tender market continues to exhibit a favorable pattern of high concentration.
Substation Procurement Expected to Sustain Strong Growth
The announcement of winning bidder candidates for the third batch of substation equipment (including cables) for State Grid's 2026 power transmission and transformation projects shows a total awarded amount of RMB 174.40 billion. The cumulative awarded amount for the first three batches of 2026 has exceeded RMB 500 billion. Although the cumulative amount for the first three batches of 2026 shows a slight year-on-year decrease, this follows a record-high substation procurement volume in 2025. Considering the intensive launch of main grid projects like UHV, it is anticipated that substation procurement will maintain a high-growth trend this year, with demand potentially further accelerating in the second half of 2026, creating demand synergy with UHV procurement. Given the high overlap of main grid segment suppliers and the strong order backlogs from 2025, the performance support for leading companies from grid-internal business continues to strengthen.
Risk factors include a slowdown in power grid investment growth, UHV tendering and procurement falling short of expectations, substation tendering and procurement falling short of expectations, and significant fluctuations in raw material prices.