Central China: Siasun Robot & Automation sees rapid growth in concept and steady progress in power grid construction, driving the electrical equipment industry forward.

Central China released a research report stating that it maintains a "synchronized big market" rating for the electrical equipment industry. Due to the widespread attention received by the humanoid robot Siasun Robot&Automation/dog robot, the motor/power electronics and automation sectors in the electrical equipment industry have shown strong trends, while the power transmission and distribution sector has relatively weaker growth. Macroscopically, influenced by factors such as the Spring Festival holiday, industrial production is in a slow season, and the level of manufacturing industry prosperity has declined. With the continuous release of the policy dividends after the Chinese New Year, the domestic economy continues to demonstrate strong resilience and vitality. The valuation of the electrical equipment sector is expected to continue to recover. On the one hand, the popularity of Siasun Robot&Automation/dog robot remains high, and the performance of the motor/power electronics and automation sectors is increasingly strong. On the other hand, with the acceleration of power grid construction, power transmission and distribution equipment are expected to continue growing. Key points from Central China are as follows: The performance of the electrical equipment sector in February outperformed the Shanghai and Shenzhen 300 Index As of the closing on February 27th, the electrical equipment index rose by 8.18% in that month, outperforming the Shanghai and Shenzhen 300 Index by 4.22 percentage points (3.96%). Compared with the first-class industry of CITIC, the rise and fall of the electrical equipment index ranks ninth. Industrial production is in a slow season due to factors such as the Spring Festival holiday In January 2025, the PMI was 49.1%, a decrease of 1.0 percentage points from the previous month, indicating a slight decline in the level of manufacturing industry prosperity. Among the classification indicators of the PMI, the production index was 49.8%, a decrease of 2.3 percentage points from the previous month, indicating a slowdown in manufacturing enterprise production activities; the new orders index was 49.2%, a decrease of 1.8 percentage points from the previous month, indicating a decline in demand in the manufacturing industry market. The national PPI decreased by 0.2% month-on-month and 2.3% year-on-year. Costs slightly increased In February 2025, the price of silicon steel on the cost end remained unchanged from the previous month, while the prices of copper, aluminum, and silver fluctuated upwards, leading to a slight increase in the main raw material costs of transformer manufacturing. As of February 27, 2025, the price of cold-rolled oriented silicon steel was 15,950 yuan/ton, a decrease of 0.3% month-on-month; the closing price of the main copper contract on the Shanghai Futures Exchange was 77,070 yuan/ton, an increase of 2.0% compared to the previous month; the closing price of the main aluminum contract on the Shanghai Futures Exchange was 20,620 yuan/ton, an increase of 1.0% month-on-month; the closing price of the main silver contract on the Shanghai Futures Exchange was 7,900 yuan/kg, an increase of 1.0% month-on-month. Valuation of the electrical equipment sector has been repaired As of February 27, 2025, the PE (TTM) of the electrical equipment sector was 36.21 times, an increase of 8.21% from the end of the previous month, near the historical median position; the PB (LF) valuation was 2.90 times, an increase of 7.89% from the previous month, at the 47.41 percentile of history, slightly higher than the historical median. Risk alert: Economic recovery is below expectations; decline in power grid investment; exports are below expectations; fluctuation risk in the industrial chain prices.