Year-over-year increase of over 35%! State Grid's January investment surges, with the ultra-high voltage "Eight Crossings and Four Directs" accelerating construction

The A-share ultra-high voltage concept continues to be active. On February 6, the ultra-high voltage concept opened lower and then rose, closing the morning session with a 1.90% increase, leading the market in gains. Among individual stocks, Hang Electric Co., Ltd. and Jicheng Electronics hit the daily limit, while Fosun Technology, Ankou Smart Electric, and Tongguang Cable rose over 6%. Baobian Electric, Hengtong Optoelectronics, and others increased over 5%, with Zhongtian Technology, Huijin Tong, Huyuan Communications, Zhongchen Shares, Hanlan Cable, and Oriental Tower rising over 4%.

State Grid Promotes Ultra-High Voltage Construction

According to Data Power News, the results of the first five batches of bids for State Grid’s ultra-high voltage equipment in 2025 have been announced, with a total disclosed amount of up to 1.7 billion yuan. Companies such as Xi’an Xidian Transformer Co., Ltd., TBEA Shenyang Transformer Group Co., Ltd., and Henan Pinggao Electric Co., Ltd. ranked among the top bidders.

This announcement involves 115 winning packages, with 4 packages canceled, and an average single-package amount of about 15.16 million yuan. By category, the bid amount for 1000kV transformers reached 661.31 million yuan, 1000kV switchgear bid amount was 551.80 million yuan, and online line monitoring projects totaled 118.02 million yuan.

Additionally, according to the State Grid official website, at the start of the new year, the company’s units are working hard and riding the momentum to accelerate grid investment implementation, coordinate safety, quality, and progress, and promote major projects such as ultra-high voltage and pumped storage. Data shows that the company’s fixed asset investment in January reached a total of 30.8 billion yuan, a year-on-year increase of 35.1%.

State Grid stated that currently, projects such as Gansu-Zhejiang “Eight Crosses and Four Directs” ultra-high voltage projects and related flexible interconnection projects are under construction. In the Northwest, the Gansu-Zhejiang project’s Gansu section crossing Pingmian Expressway and Longhai Railway has been completed; in the Southwest, the Aba-Chengdu East ultra-high voltage AC project’s sections 15 and 16 have been connected; in North China, the Mengxi-Jingjinji and other ultra-high voltage export channels are being constructed in an orderly manner, supporting coordinated development in Beijing-Tianjin-Hebei.

AI Computing Power Demand Triggers “Power Anxiety”

Not only domestically, but globally, the demand for transformers is also increasing. From a global perspective, the explosive growth in artificial intelligence (AI) computing power is putting unprecedented pressure on power grids worldwide. The U.S. Department of Energy predicts that by 2028, the electricity demand for AI servers could surge from about 40 TWh in 2023 to between 165 and 325 TWh.

As early as the Bosch Connected World Conference in 2024, Elon Musk stated, “A year ago, the world lacked chips; now it will be transformers.” Recently, Musk further pointed out in an interview, “The bottleneck constraining artificial intelligence will shift from chips to voltage transformers,” bringing this grid equipment back into the spotlight.

Image source: BOSCH

This global “power anxiety” triggered by AI is accelerating grid upgrades and reconstruction in developed regions including North America. Currently, delivery cycles for European and American power equipment (such as high-voltage direct current systems) have been extended to 2030, creating a golden window for Chinese competitive power equipment companies to go overseas.

Customs data shows that China exported a total of 57.9 billion yuan worth of transformers from January to November 2025, a year-on-year increase of 36%. According to Electric Power Innovation data, the average export price of Chinese transformers has risen from $12,000 in 2020 to $20,800 in 2025, with high-end models doubling in price, and both export volume and price increasing.

Many Ultra-High Voltage Stocks See Significant Profit Growth

The Head Leopard Research Institute predicts that from 2026 to 2030, an average of 2-3 new ultra-high voltage lines will be started annually, with demand for high-end products such as converter transformers and parallel reactors expected to grow at an annual rate of over 6%. Meanwhile, the intelligent transformation of urban and rural distribution networks is accelerating, with growth in smart distribution transformers, and the deployment of “primary-secondary integration” devices and intelligent monitoring modules on the distribution side further raising product prices and market scale, forming a dual-driven model of “transmission network expansion + distribution network smart upgrade.”

Driven by market demand, the performance of related listed companies has also improved overall. According to data from Eastmoney Choice, there are 83 A-share ultra-high voltage concept stocks, of which 10 had net profits attributable to shareholders doubling in the first three quarters of 2025, and another 7 increased by more than 50% year-on-year.

Specifically, Beijing Keli’s net profit growth rate in the first three quarters of 2025 was the fastest, with an increase of over 14 times; followed by Huyuan Communications, with an increase of over 660%; Gaolan Shares and Yuan Dong Shares both saw net profit increases of over 200%.

Additionally, Dazhongnan, Keda Intelligent, Kehui Shares, International Industry, Jintian Shares, and Guodian Nanzi all saw net profit increases of over 100% year-on-year.

(Source: Eastmoney Research Center)