Orient: Ultra-high-voltage secondary bidding drives demand for GIS, firmly optimistic about the high prosperity cycle of power equipment going overseas

Orient released a research report stating that the 4 trillion investment plan of State Grid Corporation of China for the "14th Five-Year Plan" is expected to be implemented in early 2026, and the domestic electric power equipment industry is expected to maintain a high level of prosperity. The secondary bidding for ultra-high voltage projects will mainly focus on AC engineering, which is expected to significantly drive GIS demand. In terms of going global, domestic and overseas electric power equipment companies have seen a high level of orders in the first quarter, and the outlook for the super-cycle of electric power equipment going global is positive. Key points from Orient are as follows: State Grid's second bidding for Ultra-high voltage projects boosts GIS demand On April 17th, State Grid Corporation announced the second equipment bidding and procurement notice for the 2026 ultra-high voltage projects. This round of bidding involves 21 bidding sections and 122 packages, mainly focusing on projects such as Westward Climb, Zhejiang Ring Network, Yanwei, Zhaoyuan Nuclear Power Transmission, Darat-Monxi AC projects, and core materials include 1000kV compound circuit breakers, 1000kV reactors, 1000kV transformers, etc. The total bidding amount is expected to exceed 9 billion RMB, which is expected to significantly increase GIS-related enterprise orders and support future performance. GEV's first quarter report shines, accelerating the release of electric power equipment demand Driven by the dual forces of AIDC and power grid modernization, global demand for gas turbines and electric power equipment continues to rise. On April 22nd, GEV disclosed its performance report for the first quarter of 2026, with first-quarter revenue of 9.3 billion USD and adjusted EBITDA of 896 million USD, both higher than previous market expectations. The company has raised its full-year revenue guidance to 44.5-45.5 billion USD; orders for the quarter reached 18.3 billion USD, up 71% year-on-year, with total backlog orders rising to 163 billion USD. Due to the rise in quantity and price of transmission business and power grid system integration business, and improved efficiency, the electrification business has become a new growth driver. New orders in the first quarter reached 7.1 billion USD, up 86% year-on-year, with the order-to-sales ratio of about 2.5 times, quickly accumulating backlog orders. Data centers contributed about 2.4 billion USD, exceeding the full-year 2025 data center revenue. Domestic electric power equipment companies see high demand for overseas orders, positive outlook for the super-cycle of going global From recent reports of domestic companies, in the first quarter of 2026, Hainan Jinpan Smart Technology's overseas new orders reached 2.252 billion RMB, a year-on-year increase of 280.73%, accounting for 67.34% of the company's first-quarter new sales orders; in the field of data centers, the company's sales revenue was 383 million RMB, a year-on-year increase of 103.77%, achieving sales orders of 1.735 billion RMB, a year-on-year increase of 278.45%. The operating performance of Sieyuan Electric is steadily improving, with synergy in domestic and overseas markets. According to the company's 2025 annual report, new orders in 2025 reached 28.891 billion RMB, up by 34.64% year-on-year, and the order target for 2026 has been further increased to 37.5 billion RMB; total revenue in 2025 reached 21.539 billion RMB, up by 39.34% year-on-year, with overseas market revenue of 5.803 billion RMB, up by 85.84% year-on-year. Domestic and overseas resonance, firmly optimistic about the electric power equipment sector The current electric power equipment industry is overall in a high prosperity cycle, with solid support from domestic infrastructure demand, and the global tight balance between power supply and demand highlights the broad opportunities for leading domestic electric power equipment companies to go global. Orders for domestic and overseas related companies are both in high demand, and the investment opportunities in the electric power equipment sector are firmly optimistic. Risk warning State Grid's investment falls short of expectations, ultra-high voltage construction falls short of expectations, overseas electric power equipment demand falls short of expectations, etc.