Analysis of XIGAOYUAN (688334) as a Strong Stock: Driven by Trillion-Yuan Power Grid Investment Catalysts, Watch for Short-Term Pullback Risks

XIGAOYUAN (688334) performed strongly on January 16, 2026, with a 19.5% share price increase, approaching the daily limit, and entered the strong stock pool. As a central enterprise leader in the electrical equipment testing sector, today’s surge is mainly driven by the policy catalyst of State Grid’s 4 trillion yuan fixed-asset investment program during the “15th Five-Year Plan” period. The company delivered steady performance growth in the first three quarters of 2025, with net profit rising 21.28% year-on-year. However, technical indicators show scattered chips and low main force control, so investors need to watch for pullback risks after the catalyst is priced in.

On January 15, State Grid announced that fixed-asset investment during the “15th Five-Year Plan” period is expected to reach 4 trillion yuan, a record high, representing a 40% increase compared to the “14th Five-Year Plan” period[1]. This heavyweight policy catalyst directly ignited bullish sentiment in UHV (Ultra-High Voltage) concept stocks. State Grid clearly stated that it will focus on advancing the construction of a new power system, with an average annual installed capacity of 20 GW of wind and solar new energy added, and cross-region and cross-province power transmission capacity expected to increase by more than 30% compared to the end of the “14th Five-Year Plan” period[1]. As a leading enterprise in the electrical equipment testing service sector, XIGAOYUAN will directly benefit from the accelerated advancement of UHV and smart grid construction, with testing service demand expected to grow significantly.

Today, UHV concept stocks became the strongest theme in the A-share market, with more than 10 stocks in the sector hitting the daily limit. Baobian Electric, Pinggao Electric hit the daily limit (Baobian Electric achieved a 2-day consecutive limit), Siyuan Electric hit the daily limit and reached a new high, while XIGAOYUAN rose nearly 11% and ranked among the top gainers on the STAR Market[1][2]. Market funds are deeply digging into the UHV sector, and XIGAOYUAN, as a leader in the testing service sub-sector, has attracted capital attention.

According to market data, XIGAOYUAN rose 19.5% today, with trading volume expanding significantly, ranking among the top gainers on the STAR Market[0]. Technically, the average transaction cost of chips is 19.98 yuan, with a support level of 19.44 yuan below and a resistance level of 21.58 yuan above. Notably, main funds were sold off for 2 consecutive days before, but reversed to inflow today, indicating that large funds are scrambling for shares[2]. However, the chip distribution is very scattered, and the main force control degree is low, which may limit the stability of the stock’s continuous rise.

XIGAOYUAN is a central enterprise controlled by the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC), with leading technical and experience advantages in the electrical equipment testing service sector[2]. The company has completed type tests of voltage source converter valves for multiple UHV flexible DC transmission projects, achieved technological breakthroughs in high-voltage current-limiting fuse products in the nuclear power field, and participated in major projects such as the Baihetan-Jiangsu ±800kV UHV DC transmission project. Such an industry position and project experience provide a solid foundation for it to continue benefiting from power grid investments.

As of September 30, 2025, the number of shareholders of the company was 11,200, a decrease of 8.45% from the previous period; the average number of tradable shares per shareholder was 14,019, an increase of 9.23% from the previous period[2]. The decrease in the number of shareholders and the increase in average tradable shares per shareholder indicate that chips are becoming concentrated. More notably, Hong Kong Securities Clearing Company Limited newly entered as the 6th largest tradable shareholder, holding 1.3647 million shares[2], which may reflect overseas funds’ recognition of the company’s medium- and long-term investment value.

In the first three quarters of 2025, the company achieved operating revenue of 651 million yuan, a year-on-year increase of 15.05%; net profit attributable to parent company shareholders was 198 million yuan, a year-on-year increase of 21.28%[2]. The net profit growth rate is higher than the revenue growth rate, indicating that the company’s profitability is improving and its operation and management efficiency is continuously improving. This steady performance growth provides intrinsic value support for the stock price, rather than pure concept speculation.

: With a 19.5% increase today, there is significant short-term pullback pressure, especially as some funds may choose to take profits after the catalyst is priced in.

: Technical analysis shows that the chip distribution is very scattered, with no obvious continuous control by main funds, which means the sustainability of the stock price rise may depend on market sentiment and the push of follower funds, rather than the lock-up and pull-up by main funds[2].

: The current rally is mainly driven by policy expectations, belonging to an event-driven market. If the implementation progress of State Grid’s investment plan falls short of expectations, or sector sentiment cools down, the stock price may face adjustments.

: Today, the three major indexes fluctuated and pulled back, with nearly 3,000 stocks in the A-share market falling[1]. In such an environment, investors need to watch for the risk of catch-up declines in strong stocks.

: State Grid’s 4 trillion yuan investment program is a long-term plan, and the implementation of the investment will continue to release positive catalysts. As a leader in testing services, the company is expected to benefit in the long term.

: The target of increasing cross-region and cross-province power transmission capacity by more than 30% means that UHV construction will enter a new peak period, and the company’s testing business orders are expected to grow continuously.

: The company’s technological breakthrough in the nuclear power field has expanded its business boundaries, and it is expected to gain new growth points in the clean energy sector.

Price Type	Price	Operational Significance
Strong Resistance Level	21.58 yuan	Previous high, turns into support after breaking
Short-Term Support Level	20.00 yuan	Integer level
Strong Support Level	19.44 yuan	Lower edge of chip concentration area
Stop-Loss Reference Level	18.50 yuan	Be cautious if effectively broken

The core driver of XIGAOYUAN’s strong performance today is

. As a central enterprise leader in the electrical equipment testing sector, it has formed sector linkage with UHV and smart grid concepts. From a fundamental perspective, the company achieved steady performance growth with 15.05% revenue growth and 21.28% net profit growth in the first three quarters. Hong Kong Securities Clearing Company Limited newly entering the top 10 tradable shareholders also reflects institutional recognition of the company’s value.

: In the short term, it is an event-driven rally, and it is expected to have an inertial upward move within 1-3 days, but investors need to watch for pullback pressure after the catalyst is priced in; in the medium term, it is necessary to observe the implementation of orders and performance verification; in the long term, the company benefits from the construction of a new power system and has certain medium- and long-term allocation value. Technically, the characteristics of scattered chips and low main force control may limit the stability of the stock’s continuous rise. Investors should pay attention to whether trading volume can continue to expand and the evolution of sector sentiment.

: With the excessive short-term increase, chasing highs is not recommended; investors can wait for a pullback to near the support level before positioning, while closely monitoring the progress of policy implementation, order acquisition, and the impact of changes in the broad market environment on the stock price.

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This report is compiled and analyzed based on public market information and does not constitute investment advice. Investment involves risks, and decisions should be made with caution.