Electricity Equipment Investment in May: Focus on UHV, Distribution Network
July 24 02:26:14, 2025
In April, significant progress was made in China's ultra-high voltage (UHV) transmission infrastructure. The UHV AC transmission project in Fuzhou, located in northern Zhejiang, officially commenced operations. Meanwhile, the demonstration project of the Xiangjiaba UHV DC transmission system in Shanghai reached full-load operation on both poles. Additionally, the Leshan 1000-kilovolt substation received official approval for its construction. These developments highlight the rapid expansion of China’s UHV network.
During the first quarter of the year, China transmitted a total of 10.72 billion kWh via UHV lines, marking an impressive 99.96% year-on-year increase. This accounted for 8.64% of the country’s overall electricity market, underscoring the growing importance of UHV technology in national energy distribution.
The maturation of UHV technology is evident, and its strategic role in energy transmission continues to strengthen. As more UHV lines come online, equipment manufacturers are expected to see increased demand and business opportunities.
Turning to nuclear power, the industry is shifting toward high-performance generating units. In April, Unit 1 of the Ningde Nuclear Power Plant was officially commissioned for commercial use. Meanwhile, the conventional island of Unit 4 entered the installation phase. According to the development plan, four CPR1000 pressurized water reactor units will be launched between 2013 and 2016. Furthermore, the environmental evaluation for the CAP1400 demonstration project at Rongcheng Shidao Bay in Shandong has concluded, with Unit 1 scheduled to begin formal construction in April 2024. Given security concerns, future nuclear projects are likely to focus on advanced third-generation reactors.
Looking at performance in 2013, there was a clear divergence among listed companies in the sector. Out of 127 firms, 64 reported year-on-year profit growth in 2012, while 75 saw similar gains in the first quarter of 2013. The industry showed distinct performance differences. Due to slower investment growth, revenue and net profits for power equipment companies declined to varying degrees. However, the power grid equipment segment performed better than power supply equipment. Both power distribution and secondary equipment sectors experienced double-digit growth in income and net profit.
**Investment Recommendation:**
For the next 12 months, the electrical equipment sector is rated as "Neutral." Investors should remain cautious but watch for potential opportunities as key projects continue to advance.
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