Re-Call [Hexing Electric] Quick Comment on Power Equipment Sector Rally

English summary

As of noon on July 29, the power grid equipment index rose 1.44%, with Hexing Electric hitting the daily limit; Sanxing Electric, Shuangjie Electric, Pinggao Electric, XJ Electric, Dalian Insulator and others rose over 4%; TBEA, China XD Electric, Mingyang Electric and others also gained. Since March, the power equipment sector has corrected significantly, with the power grid equipment index falling over 30%. Currently, the industry's average 2026 P/E is ~20x. We reiterate our prior view: stable domestic grid investment provides the base, while overseas demand releases long-cycle elasticity. We continue to recommend focusing on the power equipment sector and leading companies with high earnings certainty. #Domestic: UHV tenders usher in a new peak;…