State Grid’s first-half fixed-asset investment exceeds RMB310 billion, China Southern Power Grid nears RMB89.3

State Grid completed fixed-asset investment of over RMB310 billion in the first half of 2026, an increase of 12.6% year on year, with 15 ultra-high-voltage (UHV) projects and 37 pumped-storage power stations accelerating construction. China Southern Power Grid invested nearly RMB89.3 billion in the same period, up 14.79% year on year, a record high for the first half, achieving 49.59% of its full-year investment target of RMB180 billion.

Du Zhongming, Director of the Electric Power Department of the National Energy Administration, said the administration is speeding up the formulation of an implementation plan for building a new-type power grid. Total national grid fixed-asset investment during the 15th Five-Year Plan period will exceed RMB5 trillion. Inner Mongolia Power Group's fixed-asset investment in the same period will surpass RMB200 billion.

As of the end of June 2026, China's cumulative installed power generation capacity reached 4.04 billion kilowatts, up 10.8% year on year. Within State Grid's service area, grid-connected new-energy capacity hit 1.55 billion kilowatts.

Global electricity demand is projected to grow 3.6% in 2026 and 3.8% in 2027, both above the 3% growth recorded in 2025.

In the A-share market, as of July 24, the 141 grid equipment stocks had fallen by more than 6% on average since the start of 2026. Twenty-two companies posted gains of over 10%, and ten of them more than 50%, including Huasheng Chang, Hangdian Co. and Far East Smarter Energy. Far East Smarter Energy gained over 80%; in the first half, its battery storage and related business won cumulative orders worth over RMB3.521 billion in contracts of at least RMB10 million each, a jump of 262.14% year on year.

On the margin balance front, on July 23, the aggregate margin balance of grid equipment companies stood at nearly RMB41.3 billion, up over 7.5% from the end of 2025. The balance rose more than 10% at 38 firms, with Guangge Technology surging over 600%. Among them, 16 companies saw margin balance growth exceeding 10% and attracted no fewer than 10 institutional research visits since 2026. Ranked by number of institutional research visits, the leaders were Huaming Equipment, Southern Power Grid Technology, Sieyuan Electric and Dongfang Electronics. Huaming Equipment received more than 240 such visits, and its margin balance jumped over 88% from end-2025. Dongfang Electronics received 55 visits, with its margin balance up over 26%. As of July 24, those 16 companies had averaged a gain of about 4% since the start of 2026.