Hong Shenghua Yuan (601096) Limit-Up Analysis: Catalyzed by SGCC's RMB 4 Trillion Investment, UHV Tower Supplier Benefits

Item	Data
Stock Code	601096
Company Name	Hong Shenghua Yuan Tower Co., Ltd.
Industry	Industrials - Electrical Equipment
Current Price	RMB 4.83
Price Change	+10.02% (Limit-Up)
Turnover Value	RMB 455 million
Turnover Rate	5.84%
Trading Volume	164 million shares (approximately 6.7x the average daily volume)
Free Float Market Capitalization	Approximately RMB 7.9 billion
Total Market Capitalization	Approximately RMB 82.1 billion
52-Week Range	RMB 4.07 - RMB 4.83

According to Securities Times and multiple authoritative media reports, on January 15, SGCC announced that its fixed-asset investment during the 15th Five-Year Plan period is expected to reach

, a 40% increase compared to the 14th Five-Year Plan[1][2]. This heavyweight policy has directly boosted enthusiasm in the power grid equipment sector. The three key investment directions include: construction of a new power system (20 GW of new wind and solar energy installed capacity annually), construction of UHV DC transmission channels (cross-regional and inter-provincial transmission capacity increased by over 30%), and construction of charging facilities (meeting the access demand of 35 million charging facilities).

The continuous increase in power grid investment provides a solid industry foundation for Hong Shenghua Yuan. SGCC’s power grid investment exceeded RMB 600 billion in 2024, and is expected to surpass RMB 650 billion in 2025[1]. In the first three quarters of 2024, SGCC’s centralized bidding for tower-related procurement reached RMB 21.8 billion, a year-on-year increase of 23.6%[3]. In 2025, the bidding amount for the last batch of backbone network equipment by SGCC increased by 88% year-on-year[1], indicating sustained strong demand for UHV transmission towers.

As a core supplier of UHV transmission towers, Hong Shenghua Yuan has outstanding fundamental performance. The company currently has over RMB 6.5 billion in outstanding orders, with UHV projects accounting for over 41% of the total. The company has completed the supply of all angle steel towers for the Datong-Tianjin South 1000 kV UHV AC project, and is also one of the core tower material suppliers for the Jinshang-Hubei ±800 kV UHV DC project. Its controlling shareholder is China Electrical Equipment Group (CEEG), a member of the “national team” of power equipment. CEEG’s revenue exceeded RMB 230 billion in 2024, providing the company with strong resource integration advantages[3].

From a valuation perspective, Hong Shenghua Yuan’s dynamic P/E ratio is approximately 34.24x, lower than most peers in the power equipment sector (Senyuan Electric 48x, XD Xi’an Electric 37x), placing it in a valuation trough. Its free float market capitalization is only RMB 7.9 billion, with public fund holdings accounting for less than 0.3%, providing significant room for speculation[3].

Based on real-time market data[0], Hong Shenghua Yuan performed strongly today, opening at RMB 4.56, with a high/low of RMB 4.83/RMB 4.54, and finally closing at the limit-up price of RMB 4.83. Trading volume reached 164 million shares, 6x the average daily volume of 27.24 million shares, indicating significant capital inflow. In terms of short-term gains, the 1-day gain is +10.02%, 5-day gain is +13.11%, and 1-month gain is +15.27%, showing an accelerating upward trend.

Indicator	Value	Signal Interpretation
KDJ	K:91.6, D:84.7, J:105.4	Significantly overbought zone, pullback risk exists
MACD	Bullish Formation	Uptrend remains intact
RSI(14)	Overbought Zone	Short-term overheating
Beta	0.88	Volatility slightly lower than the broader market
Support Level	RMB 4.35	Key short-term support
Resistance Level	RMB 4.83	Breached, next target at RMB 4.93

Technical analysis shows[0] that Hong Shenghua Yuan is in an upward trend (to be confirmed), with a buy signal appearing on January 6. The current price has broken through the key resistance level of RMB 4.83, with the next target at RMB 4.93. However, the KDJ indicator’s J value of 105.4 and RSI both show overbought conditions, posing short-term pullback risk.

The power grid equipment sector rose sharply against the market today, becoming one of the most eye-catching sectors[4][5]. The Power Grid Equipment ETF (159326) rose over 5%, once exceeding 5% intraday, with its scale breaking through RMB 6.9 billion, hitting a record high since its establishment. Multiple stocks in the sector hit limit-up, including China Electric Power Research Institute (300215) with a 20% limit-up, Han Cable Co., Ltd. (002498), Siyuan Electric (002028), Baobian Electric, etc.

The Power Grid Equipment ETF has seen net inflows for 6 consecutive trading days, with a total inflow of over RMB 2.5 billion[4], and over RMB 350 million in net inflows in the past 5 days[5], indicating continuous capital favor for the power grid equipment sector.

Judging from stock bar forums and financial communities, investor reaction is enthusiastic[3]: Bullish views hold that the company is a pure-play UHV target, with valuation trough and sufficient orders, and is expected to continue to strengthen; cautious views remind investors of the excessive short-term gains and the risk of a “one-day rally”.

Risk Type	Specific Performance
Overbought Risk	KDJ indicator J value at 105.4, RSI in overbought zone, excessive short-term gains
Technical Pullback Risk	Need to observe limit-up order volume; caution is required if the limit-up is broken or volume surges without price increase
Sector Rotation Risk	If the broader market pulls back, hot sectors may experience supplementary declines
One-Day Rally Risk	Theme speculation heat may cool down quickly

The current PE (TTM) is approximately 38.61x, near the upper edge of its historical valuation range (52-week range RMB 4.07-4.83). It is necessary to pay attention to whether performance can support the valuation, as the Q3 net profit margin was only 3.38%[3], indicating relatively weak profitability.

SGCC’s RMB 4 trillion investment is a long-term positive (2026-2030), and the company has sufficient outstanding orders, providing a guarantee for performance growth. Its controlling shareholder is China Electrical Equipment Group, with obvious resource integration advantages. Against the backdrop of new power system construction, as a member of the power equipment “national team”, the company is expected to continue to benefit from the industry’s improved prosperity.

Scenario	Probability	Trigger Condition	Trend Forecast
Strong Trend Continuation	35%	Sustained growth in limit-up order volume, sector continues to strengthen	Challenge the integer level of RMB 5.00
High-Level Consolidation	45%	Stable limit-up order volume, sufficient turnover	Consolidate in the range of RMB 4.60 - RMB 5.00
Pullback After Rally	20%	Broader market pullback, sector differentiation	Retest the support level of RMB 4.35

Price Type	Price	Description
Immediate Resistance	RMB 4.93	Next technical target
Strong Resistance	RMB 5.00	Integer level + historical high
First Support	RMB 4.60	Near the 5-day moving average
Strong Support	RMB 4.35	20-day moving average + previous consolidation platform

Hong Shenghua Yuan’s limit-up today is the result of a resonance of three factors:

. The core catalyst is SGCC’s 15th Five-Year RMB 4 trillion investment program. As a core supplier of UHV transmission towers, the company has over RMB 6.5 billion in outstanding orders, providing a mid-to-long-term investment logic.

: Technical indicators show significant overbought conditions, with both KDJ and RSI indicating pullback pressure. After the limit-up, investors need to monitor the sustainability of limit-up orders and changes in trading volume. If strong turnover can be maintained, the stock is expected to challenge new highs; if the limit-up is broken or volume surges without price increase, short-term adjustments need to be watched out for.

: Against the backdrop of SGCC’s continuous investment increase and new power system construction, as a member of the power equipment “national team”, the company is expected to continue to benefit from the industry’s improved prosperity.