The Huatai Securities Research Report said that in the early stages, the power grid equipment sector was accompanied by a boom in overseas markets and the implementation of the “15th Five-Year Plan” 4 trillion investment plan. The market's performance expectations and valuation pricing for the sector continued to improve, and hit a new high in early March this year; since then, it has been affected by the Middle East conflict, changes in market style, and pressure on sector performance, and has entered a continuous adjustment stage. Currently, it is believed that the market's performance expectations for the second quarter report are relatively sufficient, and the overall valuation of the sector is already low. Once again, it was emphasized that the medium- to long-term logic of power grid equipment going overseas is still strong. The performance at the enterprise order level is good, and some targets are expected to break through overseas markets at an accelerated pace; at the same time, there is strong support for the second-quarter results and mid-term orders of the main domestic network; there is room for overall sector valuation repair and catalysis.

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