Global economic resonance! Multiple stocks hit the daily limit in power grid equipment, with leading companies doubling by 2026

Power grid equipment performed strongly in the morning session on February 12, with Hanlan Co., Ltd., Sifang Co., Ltd., Wangbian Electric, Shunna Co., Ltd., and Senyuan Electric hitting the daily limit; Yinen Power and Xinte Electric surged over 10%.

Global Power Grid Investment Boom

Market analysts believe that the strength in power grid equipment is driven by high global power grid investment. Domestically, State Grid Corporation previously announced that during the 14th Five-Year Plan (2026–2030), fixed asset investment will reach 4 trillion yuan, a 40% increase over the 14th Five-Year period, with an annual investment scale of 800 billion yuan. Additionally, China Southern Power Grid disclosed a fixed asset investment plan of 180 billion yuan for 2026, setting new records for five consecutive years with an average annual growth rate of 9.5%. If this growth rate continues in the coming years, China Southern Power Grid’s total fixed asset investment over the next five years is expected to be around 1 trillion yuan.

Internationally, increasing investment in power grid equipment is also urgent. In late January 2026, winter storms swept across eastern and southern United States, causing power outages for over one million users nationwide. The U.S. Department of Energy’s “Resource Adequacy Report” shows that between 2013 and 2023, power outages in the U.S. increased by 60%, with outage durations nearly doubling. By 2030, outages could increase by another 100%.

This phenomenon is directly related to the severe aging of power grid infrastructure in developed economies like Europe and North America. Goldman Sachs research reports indicate that the average service life of European power grids is up to 50 years, and North American grids have reached 40 years. Outdated equipment poses significant risks to the safe and stable operation of power grids, and the urgent need for upgrades is evident.

In December 2025, the European Union released the “European Power Grid Package Plan,” which launched the “Energy Highway” initiative, identifying eight cross-border interconnection priority projects, aiming to mobilize 1.2 trillion euros in power grid investment.

According to transformer export data released by the General Administration of Customs, there is also a noticeable increase in demand for power grid equipment abroad. In 2025, China’s transformer exports reached a record 64.6 billion yuan, a nearly 36% increase from the previous year; the average export price per transformer rose to 205,000 yuan, about one-third higher than last year.

Continuous Policy Support

Domestic policies favorable to the power grid sector continue to emerge. On February 11, the General Office of the State Council issued the “Implementation Opinions on Improving the National Unified Electricity Market System,” outlining goals for the next 5–10 years. By 2030, a basically unified national electricity market system will be established, with all types of power sources and non-subsidized users directly participating in the market, and market-based electricity transactions accounting for about 70% of total social electricity consumption.

The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) released the “Guiding Opinions on Promoting High-Quality Development of Power Grids” at the end of December 2025, proposing that by 2030, a new power grid platform integrating “main trunk grid + distribution network + smart microgrid” will be built. The capacity for optimized allocation of grid resources will be significantly enhanced, with “West-to-East Power Transmission” exceeding 420 million kilowatts, inter-provincial power transfer capacity increasing by about 40 million kilowatts, supporting renewable energy generation accounting for about 30%, distributed renewable energy capacity reaching 9 billion kilowatts, and charging infrastructure exceeding 40 million units.

In January 2026, the NDRC and NEA also issued the “New Power System Construction Action Plan (2026–2030),” detailing pathways for ultra-high voltage transmission, smart distribution networks, AI dispatching, energy storage, and virtual power plants.

AI Computing Power Opens Second Growth Curve

The rapid development of AI and the explosion in computing power demand have opened new horizons for the power grid equipment market. Market insiders say, “The end of computing power is electricity,” which could trigger a second growth curve for the power grid equipment industry.

Chen Yabo, investment manager of Zhuque Fund’s dedicated account investment department, stated that with the continuous release and iteration of new AI models, the demand for model training is substantial. According to research by scholars, for example, the 1.3 billion parameter GPT-3XL model by OpenAI, assuming ChatGPT trains 50 times a year, consumes up to 1.183 billion kWh annually.

“This is just during training; AI’s high electricity consumption also manifests in inference. Longer inference times increase token consumption, and in the long run, inference demand is expected to further increase electricity use. AI-driven search could further boost power consumption. As AI applications become more widespread, inference power consumption is expected to rise,” Chen Yabo explained.

Huang Zongxian, researcher at Huaxia Fund, gave an example: China’s annual new electricity load is about 80 GW, globally around 200 GW, but the power demand related to AI chips alone—such as Nvidia and TSMC—requires 30–40 GW of additional capacity, accounting for about 15% of the current global incremental capacity. Wood Mackenzie suggests that the electricity demand and grid upgrades driven by AI could promote planning and construction of power generation and transmission capacity.

Top 20 Power Grid Stocks in 2026

In terms of individual stocks, the power grid equipment sector has been generally strong since 2026. As of the morning session on February 12, Yinen Power has doubled, with a 122.16% increase. Hangdian Co., Ltd., Sanbian Technology, China Western Power, Wangbian Electric, and Shuangjie Electric also performed well.

Overall, among 137 power grid stocks, 126 have risen since 2026, accounting for about 92%. Of these, 93 stocks gained over 10%, and 44 stocks gained over 20%. The median increase is 14.38%.

Looking ahead, some brokerages suggest that given the good start of China’s “14th Five-Year Plan” for the power system and the continued growth trend of overseas power grid investments, attention should be paid to ultra-high voltage equipment manufacturers, distribution network equipment manufacturers, and leading exporters of power grid equipment to overseas markets.

(Article source: Oriental Fortune Research Center)