On November 10, the State Grid opened bids for its third batch of metering equipment procurement in 2025. As the first comprehensive tender adopting new standards for electricity meters, the unit prices of energy meters and transformers surged by 47% and 44%, respectively, compared to the second batch, marking a rebound after previous declines.

From January to September 2025, China's power grid projects completed investments totaling RMB 437.8 billion, up 9.9% year-on-year. Huatai Securities noted that under the new meter standards, the industry is expected to achieve stable volume and rising prices by 2026, boosting corporate profitability. Meanwhile, driven by AI computing demand, global power shortages persist, accelerating overseas grid investments. Chinese power grid equipment manufacturers may benefit from spillover demand, unlocking export potential.

Huatai Securities reiterated optimism for the power equipment sector, highlighting three investment themes: overseas expansion, AIDC (AI data centers), and domestic industry leaders. CICC projected that grid investments would maintain high single-digit annual growth in the coming years, with sustained overseas demand supporting Chinese power equipment companies' global expansion.

For primary equipment, downstream demand shows slight divergence: ultra-high voltage equipment bidding remains robust, while transformer and switch exports shine. However, weak Q3 renewable energy installations outside the grid have slightly pressured deliveries. CICC remains bullish on accelerated ultra-high voltage progress by year-end and the positive impact of strong overseas demand on corporate earnings.

**Related Hong Kong-listed Power Equipment Stocks:** - **WASION HOLDINGS (03393):** State Grid and China Southern Grid’s centralized tenders continue to be the primary revenue source for Wasion’s AMI business. The company expects to secure over RMB 500 million in orders from these national tenders, along with an additional RMB 150 million from provincial grid companies and local utilities, further solidifying its market position. Collaborations with Siemens and GDS—including its Singapore-based affiliate DayOne, whose Q2 2025 power consumption rose 110.9% YoY and 49.0% QoQ to 213MW—highlight growth potential. The launch of its Johor Bahru factory in Malaysia this year is set to expand Wasion’s overseas smart distribution business. During the factory’s opening, Wasion also signed a strategic agreement with DayOne to deepen cooperation in data centers. - **CHONGQING M&E (02722):** Diesel generators (DG) serve as critical backup power solutions for data centers. Benefiting from AIDC’s demands for higher DG power output, stability, and durability, unit barriers and value are expected to rise. Chongqing M&E holds a 50% stake in Chongqing Cummins, the sole U.S. Cummins heavy-duty engine production base in China, manufacturing high-horsepower models like QSK60, QSK50, and K50, which face strong market demand. Additionally, Chongqing Hitachi Energy is one of Hitachi Energy’s largest global transformer production bases and its top ultra-high voltage transformer facility in China.