New Stock Preview | Eaglerise Electric & Electronic sprints towards Hong Kong stocks, seizing the high season of transformers.

Since its emergence in the 19th century, transformers have always been the core equipment of power systems, spanning the entire chain from power generation, transmission, distribution to end-user consumption. Today, with the rapid expansion of global artificial intelligence computing infrastructure, the demand for high-power, high-stability electrical power supply in data centers has surged, further increasing the reliance on high-performance transformers. Against this backdrop, the Chinese transformer industry is facing a historic development opportunity. According to research by CCTV Finance, transformer manufacturing companies in Guangdong, Jiangsu, and other regions have reached near capacity limits, with some manufacturers even scheduling orders for data centers up to 2027. The industry's high prosperity has quickly attracted the attention of the capital market. According to the Hong Kong Stock Exchange's disclosure on January 30th, transformer equipment supplier Eaglerise Electric & Electronic Co., Ltd. (002922.SZ) ("Eaglerise Electric & Electronic") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Guotai Junan Financing Limited as its exclusive sponsor. With this foray into the capital market, will Eaglerise Electric & Electronic receive favor from the Hong Kong Stock Exchange? Business structure optimization, stable revenue growth According to the prospectus, Eaglerise Electric & Electronic is a global provider of power equipment and solutions. Guided by market demand, Eaglerise Electric & Electronic provides a product portfolio and solutions covering multiple application areas with proprietary core technology and research and development capabilities. The company focuses on areas such as new energy, data centers, distribution, industrial control, and lighting, with a primary focus on transformer equipment products. In addition, Eaglerise Electric & Electronic also provides customized integrated solutions for different application scenarios to empower global customers. As of September 30, 2025, Eaglerise Electric & Electronic has covered over 60 countries and regions worldwide through its international sales network, providing quality products and solutions to customers in different industries and application scenarios. In 2024, among the top five Chinese suppliers in the medium-voltage transformer equipment industry, Eaglerise Electric & Electronic ranked second with a market share of 2.2%. In the sub-fields, Eaglerise Electric & Electronic also maintains a leading position: in the new energy transformer equipment industry, the company ranked second among Chinese suppliers with a global market share of 3.7%; in the data center transformer equipment industry, it ranked third among Chinese suppliers with a global market share of 2.3%; in the lighting power industry, the company ranked fifth among global suppliers with a global market share of 1.2%. Eaglerise Electric & Electronic's global layout encompasses comprehensive localization strategies in production, sales, and service areas. As of September 30, 2025, Eaglerise Electric & Electronic has 9 production bases worldwide, including the overseas markets of the United States, Mexico, Malaysia, and Thailand; and mainland Chinas Jiangxi Ji'an, Guangdong Foshan, Anhui Huainan, Guangdong Shenzhen, and Guangdong Zhongshan. Eaglerise Electric & Electronic has established a scale production capacity layout globally, significantly increasing delivery certainty and shortening delivery cycles. The company's smart transformer manufacturing plant in the United States officially commenced operation in October 2025; it plans to work together with the production capacity of the Mexican plant to establish localized supply capacity serving the North American market. In addition, Eaglerise Electric & Electronic's factories in Malaysia and Thailand are already in operation. With the continuous expansion of its business layout, the company's performance has steadily progressed. In the first three quarters of 2023, 2024, and 2025, the company achieved revenues of approximately RMB 36.16 billion, RMB 46.03 billion, and RMB 37.69 billion, respectively. In terms of product types, Eaglerise Electric & Electronic's revenue structure has continued to optimize, with transformer equipment products being the core business, accounting for over 70% of total revenue in the first three quarters of 2023, 2024, and 2025. Among them, new energy products serve as a growth engine, with their revenue contribution increasing from 54.0% in 2023 to 58.6% in the first three quarters of 2025, demonstrating strong market demand and strategic focus in the photovoltaic and wind power fields. The revenue contribution of data center products has steadily increased, from 1.4% in 2023 to 2.6% in the first three quarters of 2025, reflecting the company's gradual progress in the global computing infrastructure construction wave. The revenue contributions of distribution products and industrial control products have decreased, from 10.3% and 6.9% in 2023 to 8.3% and 4.3% in the first three quarters of 2025, indicating the company's acceleration towards high value-added, high-growth areas. The revenue contribution of lighting products decreased from 22.4% in 2023 to 17.5% in the first three quarters of 2025, but it still maintained a stable contribution; the contribution of other products increased from 5.0% to 8.7%, mainly benefiting from incremental growth brought by emerging applications and diversified business expansion. Along with the adjustment of the product structure, the company's profit performance has also shown phase changes: in the first three quarters of 2023, 2024, and 2025, the company recorded net profits of approximately RMB 2.17 billion, RMB 3.00 billion, and RMB 1.88 billion, respectively. The gross profit margins during the same period were 21.7%, 20.1%, and 17.8%, respectively, showing a slight decline due to changes in product structure but still maintained at a reasonable level. Continued high industry prosperity The growth of Eaglerise Electric & Electronic's performance is inseparable from the high prosperity of the industry. Since its emergence in the 19th century, transformers have always been the core equipment of power systems, spanning the entire process from power generation, transmission to consumption. With the acceleration of global AI computing infrastructure construction, high-power and high-stability power supply has become a key requirement for data centers. Guotai Haitong predicts that the global data center market will increase from $242.72 billion in 2024 to $584.86 billion by 2032, driving transformers to become a core link in computing infrastructure upgrades. In this context, the European and American markets are facing severe supply shortages. As the world's largest importer of transformers, the United States faces supply gaps of 30% and 6% for power transformers and distribution transformers, respectively, due to the accelerating construction of AI data centers combined with aging power grids. According to Wood Mackenzie, in the future, the US will rely on imports for 80% of power transformers and 50% of distribution transformers. Europe similarly experiences significant supply-demand imbalances. Data shows that 46% of US distribution facilities are past their service life, with an average service life exceeding the 25-year design life; some European grid equipment has been in operation for up to 50 years. Over the past decade of frequent extreme weather events, the failure rate of old transformers has skyrocketed by 70%, with repair cycles lasting up to 120 weeks, severely constraining grid resilience. The global transformer supply side also faces structural bottlenecks. Due to complex manufacturing processes and long supply chains, new production capacity typically takes 1-2 years from planning to commissioning, with significant scale expansions from top international companies not expected until 2027. Currently, the delivery time for large transformers has been extended to 115-130 weeks, with some high-end models requiring 2.3 to 4 years for delivery, far from meeting market demand in a timely manner. Amid this mismatch between supply and demand, the global transformer equipment market continues to expand from RMB 306.3 billion in 2020 to RMB 420 billion in 2024, with a compound annual growth rate of 8.2%. Looking ahead, with the acceleration of energy transformation, the increase in electrification levels, and the diversification of downstream application scenarios, the market size is expected to reach RMB 685 billion by 2030, with a compound annual growth rate of approximately 8.5% from 2024 to 2030. The global energy structure transformation is also rapidly driving the development of new energy transformer equipment, with the global market size of the new energy transformer equipment industry increasing from RMB 24.5 billion in 2020 to RMB 70.6 billion in 2024, with a compound annual growth rate of 30.3% during this period. In the future, as the construction of photovoltaic, wind power, and energy storage projects increases in Europe and as the energy transformation in Southeast Asia accelerates, the new energy transformer equipment will continue to upgrade its efficiency, safety performance, and energy loss to meet the collaborative operation requirements of new energy generation and energy storage systems. The global market size of the new energy transformer equipment industry is expected to reach RMB 212.4 billion by 2030, with a compound annual growth rate of 20.2% from 2024 onwards. In conclusion, facing the historic opportunity driven by the global energy transformation and AI computing infrastructure construction, Eaglerise Electric & Electronic has steadily grown into an internationally competitive supplier of transformers and power solutions with a clear strategic focus, continuously optimized product structure, global production capacity layout, and a leading advantage in high-growth tracks such as new energy and data centers. Despite challenges such as long supply chain cycles and margin pressure in the industry, the company has effectively increased delivery certainty and market response efficiency through deep localization operations, technological iteration, and customized customer service capabilities. With the progress of its listing on the Hong Kong Stock Exchange, Eaglerise Electric & Electronic is expected to further strengthen its capital strength, accelerate global capacity coordination and technological innovation, and lay a solid foundation for long-term high-quality development, occupying a more crucial position in the global wave of new power system construction.