China and Hong Kong Diversified Utilities: 1H26E Results Preview – Prefer Equipment Suppliers to Operators

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China and Hong Kong Diversified Utilities: 1H26E Results Preview – Prefer Equipment Suppliers to Operators

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07 Jul 2026 19:39:01 ET │ 12 pages

China and Hong Kong Diversified

Utilities

1H26E Results Preview – Prefer Equipment Suppliers to Operators

PRC & HK Utility, Renewable and Equipment

CITI'S TAKE Sector

We generally prefer equipment suppliers to operators in the PRC & HK utility, Pierre Lau, CFA AC

renewable and equipment sector expecting more earnings beats for the +852-2501-2716

former and earnings misses for the latter. On the positive side, we expect pierre.lau@citi.com

decent profit growth for such equipment names as Sieyuan (up 30-35%

Air Mayoy), TBEA (+20% yoy) and Pinggao (+15% yoy). TBEA was recently allowed

to bid for government projects in India which should be good news. On the air.ma@citi.com

cautious side, most PRC power and gas names are assumed to have 1H26E Bella Tian

earnings misses, except for China Yangtze Power. Among HK utilities bella.tian@citi.comGuangdong Investment is our top pick for its high (6.4%) 2026E yield.

PRC grid makers gaining from PRC fast grid capex growth — PRC power grid capex

added 21.6% yoy to Rmb170.3bn in the first five months of 2026 according to the

National Energy Administration, with most increments from civil works, UHV line

construction, pump storage facilities, etc. We assume NARI, primarily focusing on

secondary power grid equipment sales, with net profit to +11.1% yoy to Rmb2,525m

in 2W26E. We assume higher net profit growth for Sieyuan (up 30-35% yoy in

1H26E; expecting preliminary result announcement in this or next week), TBEA (up

20% yoy) and Pinggao (up 15% yoy) for selling transformers and switchgears. On 6

July, India allowed four Chinese power equipment firms to bid for government