China Transformer Overseas Orders Surge, Multiple Stocks Poised for Significant Performance Growth ( List )

The limit of computing power is electricity, and the limit of electricity is transformers.

Domestic Transformers Explode Overseas Orders

According to CCTV News, recently, transformer manufacturers across many regions in China have been operating at full capacity, with overseas orders continuously filling up. Some companies have production schedules booked until 2027.

Ganzhou Kangjin Electric’s general manager stated that all production lines in the workshop are running at full capacity to meet overseas delivery deadlines. “Just in December last year, we secured over 90 million yuan in overseas orders. In the first quarter of this year, we added several transformer orders from North America and Africa.”

Industry insiders point out that the reason Chinese transformers are being sought after worldwide is due to the huge electricity demand driven by rapid AI development and the significant gap in transformer supply.

Data shows that a large-scale AI data center’s power consumption exceeds 1 gigawatt, equivalent to the peak summer load of a medium-sized city. Additionally, AI large models are accelerating from the “training” phase to the “inference” phase, meaning their electricity consumption is shifting from one-time investment to continuous consumption.

According to the International Energy Agency, by 2030, global data centers will consume over 1.3 trillion kWh of electricity, close to Japan’s total annual electricity consumption. Citigroup analysts predict that the global power transformer industry will face a supply shortage that will last at least until 2029.

Notably, China has established the most complete transformer production system in the world, with full industry chain independence and control, accounting for about 60% of global capacity.

Data shows that by 2025, China’s transformer exports will reach 64.6 billion yuan, a year-on-year increase of about 36%; the average price per transformer exported will rise to 205,000 yuan, up about one-third from the previous year.

AI and Electricity “Bidirectional Pursuit”

Driven by grid upgrades, generation expansion, and explosive growth of AI data centers, industry experts expect the demand curve for power transformers to continue steeply rising.

Furthermore, this year’s government work report first proposed “creating a new form of smart economy,” incorporating “large-scale intelligent computing clusters, computing-electrical synergy, and other new infrastructure projects” into top-level design. This elevates the concept of computing-electrical synergy from a technical idea to a national strategy, further accelerating the “bidirectional pursuit” of AI and electricity.

Guolian Minsheng stated that China has a complete supply chain for power equipment manufacturing, with clear competitive advantages (rich experience in EPC, competitive pricing, high project execution efficiency). The trend of power equipment going overseas is clear, opening new growth opportunities for related companies.

“Global large-cycle investment in power, high prosperity for power equipment exports,” as previously noted in a China International Capital Corporation (CICC) research report, which states that by 2025, the total export value of major power equipment will increase by 24% year-on-year, with transformer exports up 35%. Both annual and December export figures hit record highs, with impressive growth in the Middle East, Americas, Southeast Asia, and Europe. We remain optimistic about a global power investment cycle, with Chinese companies expanding overseas and potential profit elasticity.

Guotai Haitong Securities also pointed out that the global data center market continues to grow, boosting demand for transformers and other equipment. Amidst global transformer shortages, Chinese transformer companies are expected to benefit significantly.

Many Stocks Expected to Grow Significantly This Year

According to Shenwan’s three-tier industry classification, over 50 A-share stocks belong to the transmission, transformation, and distribution equipment industry, with a total market value close to 900 billion yuan. Siyuan Electric and Tebian Electric have market caps exceeding 100 billion yuan, while China XD Electric and Chint Electric rank third and fourth with 82.37 billion and 74.63 billion yuan respectively.

Since the beginning of this year, over 70% of stocks in the transmission, transformation, and distribution equipment sector have seen rising stock prices, with an average increase of nearly 20%. Notably, Yinen Power listed on the Beijing Stock Exchange surged 1.2 times, ShunNa shares nearly doubled, Sanbian Technology increased 80%, and China XD Electric, Ankou Smart Electric, Baobian Electric, and others all gained over 40% in the period.

In terms of growth potential, based on unanimous forecasts from three or more institutions, 12 stocks in the sector are expected to see steady performance growth this year. Among them, Jinpian Technology is projected to see net profit increase by 50% year-on-year, while Liangxin Shares and Mingyang Electric are both expected to grow by over 30%. TGOOD, China XD Electric, Pinggao Electric, and Huaming Equipment are forecasted to see net profit increases of over 20%.

Jinpian Technology is expected to achieve a net profit attributable to parent company of 660 million yuan in 2025, up 14.82% year-on-year. Dongwu Securities commented that the company has launched the Yuan Shen ONE series SST products, with efficiency over 98%, and a capacity of 2.4MW that saves over 60% of land compared to traditional solutions, leading in technology. The company is also developing HVDC power supply architecture, with self-developed HVDC products successfully powering Jinpian Technology’s AI Factory smart plant. It is estimated that by 2030, the outdoor DC power supply market could exceed 200 billion yuan, and the company is expected to rapidly capture market share and achieve high growth.

Mingyang Electric focuses on smart transformers, container substations, and intelligent switchgear, covering from medium to high voltage. The company has deep involvement in data centers, expanding into the power grid market and continuously developing overseas business. Guolian Haitong Securities’ latest research report states that, based on the company’s industry position, growth potential, and peer valuation, a PE of 24x is assigned for 2026.

TGOOD announced yesterday evening that, according to relevant disclosures, the company is the first candidate for the bid in China Huaneng’s prefabricated substation framework agreement project, with a pre-bid share of 50% and an estimated bid amount of about 910 million yuan. The company is a leading domestic manufacturer of high- and medium-voltage prefabricated substations and is advancing H-share issuance. Since February, the company has won or pre-won procurement projects from major clients including China Southern Power Grid, China Resources New Energy, PetroChina Qinghai Oilfield, and Three Gorges New Energy.

(Source: Eastmoney Research Center)