Sieyuan Electric (002028.SZ): Phase III transformer expansion to further support export growth; reiterate Buy

研报英文原文证据摘录

Sieyuan Electric (002028.SZ): Phase III transformer expansion to further support export growth; reiterate Buy

Equity Research

17 June 2026 | 11:09AM CST

Sieyuan Electric (002028.SZ): Phase III transformer expansion to further

support export growth; reiterate Buy

On June 16, Sieyuan announced a Rmb480mn Phase III transformer factory Zhou Li

+86(21)2401-8648 |

expansion, which we view as a clear positive for its medium-term export growth zhou.li@goldmansachs.cn

Goldman Sachs (China) Securities

visibility and capacity ramp-up through 2028-2029E. Company Limited

Jacqueline Du

We estimate the project could take around one year to complete, based on the +852-2978-1783 |

jacqueline.du@gs.com

timeline of the Phase II factory, which started construction in November 2024 and Goldman Sachs (Asia) L.L.C.

began production in November 2025 (link). As such, we expect Phase III to start Hao Chen

production in 2H27E. Based on Sieyuan’s previous investment plan, we estimate this +86(21)2401-8812hao.z.chen@goldmansachs.cn|

investment could add roughly 300 units of oil-immersed transformer capacity. GoldmanCompany SachsLimited(China) Securities

Assuming an ASP of over Rmb10mn per unit per company comments, this implies

more than Rmb3bn of annual production value, indicating the company’s positive

export outlook.

Together with Phase II capacity of around 400 units and Phase III capacity of around

300 units, we estimate Sieyuan’s transformer capacity could support up to around

Rmb9-10bn of annual production value. This provides solid capacity support for our

power transformer forecasts of Rmb8.2bn by 2028E and Rmb10.6bn by 2029E,

which remain unchanged.

We reiterate our Buy rating on Sieyuan, as we see the company as a key

beneficiary of the global power transformer shortage.