Shares of Harbin Electric (01133.HK) have continued their upward trajectory, rising more than 3%. At the time of writing, the stock was up 3.34% to HK$16.7, with a trading volume of HK$178 million.

The company recently issued a positive profit alert, forecasting a net profit attributable to shareholders of approximately RMB 1.7 billion for the first half of 2026. This represents a significant increase of about 61.9% compared to the same period last year.

Analysts have responded positively to this development. UBS noted that the profit alert substantially exceeded market expectations. The bank also highlighted the potential inclusion of the stock in the Southbound Stock Connect program in August as an additional catalyst for re-rating, suggesting the current moment presents a favorable entry point.

Huatai Securities provided further analysis, stating the company stands to benefit from two key growth drivers. Firstly, it is expected to continue capitalizing on the growth in domestic power demand, with the strategic importance of traditional power sources like coal, gas, hydro, and nuclear for ensuring supply stability becoming more pronounced. This is anticipated to support sustained high order growth and steady performance delivery.

Secondly, the brokerage pointed to the company's strategic investments in small-scale gas turbines and fourth-generation nuclear power technology. These areas are seen as significant opportunities that could unlock substantial future growth potential for Harbin Electric.