C TRANSMISSION (00658) surged over 6% in late trading. As of press time, the stock was up 4.69% to HK$1.34, with turnover reaching HK$10.7714 million.

On the news front, C TRANSMISSION released its interim results, showing an expected loss attributable to shareholders of approximately RMB 136 million for the first half of 2025, compared to a loss of approximately RMB 528.7 million in the same period last year.

The announcement attributed the reduced loss primarily to the absence of impairment provisions for the trading business during the period, whereas significant impairment provisions were made for trade receivables in the same period last year. Additionally, revenue and profit from the wind power and industrial gear transmission equipment business increased compared to the same period last year.

Everbright Securities believes that the wind power industry maintains overall strong performance, with wind turbine manufacturers' profitability continuing to improve. In the interim and third-quarter reports of wind turbine companies, wind turbine gross margins serve as a key indicator. Continued improvement in these margins could become an important catalyst for the sector.

Furthermore, attention should be paid to the actual scale of wind power projects in provincial competitive bidding under Document No. 136 and anti-involution policy documents, which are expected to drive the wind power sector's valuation switching to 2026.