Cailian News Agency reported on November 5th (Reporter: Liu Yue) that Henan Pinggao Electric (600312.SH) announced in the evening that the company and its subsidiaries recently successfully won multiple bids in various procurement projects of State Grid Corporation of China, with a total bid amount of approximately nearly 2 billion yuan.

According to Cailian News Agency's statistics, Henan Pinggao Electric has won a total of approximately 6.815 billion yuan in bids so far this year, accounting for about 60% of last year's total revenue. In terms of performance, the company's net profit in the first three quarters of this year exceeded that of the entire previous year.

Specifically, according to the announcement by Henan Pinggao Electric, the company and its subsidiaries have become the winning bidders of projects such as the 72nd batch of State Grid Corporation of China's procurement (the fifth bid procurement of transformation and distribution equipment including cables) for the year 2024, with a total winning bid amount of approximately 1.959 billion yuan, accounting for 17.68% of the 2023 operating income.

Henan Pinggao Electric stated that the winning products include composite apparatus, circuit breakers, isolating switches, switchgear, arresters, transformers, etc. After the signing of the relevant projects, the fulfillment of these contracts will have a positive impact on the company's future business development.

According to Cailian News Agency's compilation, as of the time of writing, Henan Pinggao Electric has issued 6 bid-winning announcements this year, with a cumulative bid amount of approximately 6.815 billion yuan, accounting for 61.51% of last year's total revenue. Henan Pinggao Electric stated at the third quarter performance briefing that as of the end of the third quarter, the company's backlog orders exceeded 16 billion yuan, indicating a strong order backlog.

Henan Pinggao Electric's controlling shareholder is China Electrical Equipment Group, which also holds controlling stakes in China XD Electric (601179.SH) and XJ Electric Co., Ltd. (000400.SZ) and other A-share listed companies. These two electrical equipment companies have also recently announced the bid-winning situations for the same batch of projects related to the State Grid Corporation of China, with the former winning a total bid amount of 1.331 billion yuan, and the latter project totaling approximately 1.338 billion yuan.

In terms of performance, the third quarter report shows that Henan Pinggao Electric achieved operating revenue of 7.885 billion yuan in the first three quarters, a year-on-year increase of 5.88%; net income attributable to shareholders was 0.857 billion yuan, a year-on-year increase of 55.13%. The company's net income attributable to shareholders was 0.816 billion yuan last year, and the net profit for the first three quarters of this year has exceeded that of the entire previous year.

It is reported that Henan Pinggao Electric is one of the top three domestic manufacturers of high-voltage switchgear, with its main business being high-voltage switch business, distribution network switch business, domestic and foreign power engineering general contracting business, and switch product operation and maintenance business. As of the first half of this year, the revenue proportions of Pinggao Electric's three main business sectors, high-voltage sector, distribution network sector, operation and maintenance, and others, are 60.18%, 27.62%, 10.47% respectively.

As a power grid equipment supplier, Henan Pinggao Electric is expected to benefit from the booming electricity grid construction. From the industry perspective, data from the China Electricity Council shows that in the first three quarters of 2024, China's power grid investment reached 398.2 billion yuan, a year-on-year increase of 21.1%. In addition, power grid infrastructure construction is expected to accelerate. The content of the key infrastructure work promotion meeting held by State Grid in October revealed that this year's investment in power transmission and transformation projects by the company has hit a record high, with some tasks postponed to the fourth quarter due to extreme weather disruptions and risk avoidance measures in the previous period.