Analysis of Xinfengguang (688663)'s Strong Performance: Policy-Driven Short-Term Surge and Mid-Term Outlook

Xinfengguang (688663) performed strongly on January 16, 2026, with an intraday gain of over 15% at one point, entering the market’s strong stock pool. The core driver of this abnormal move comes from the

[2][3].

According to reports, during the 15th Five-Year period, State Grid’s fixed asset investment is expected to reach

, an increase of approximately compared to the 14th Five-Year investment. Among them, State Grid’s investment in 2026 is expected to reach 700 billion yuan, a year-on-year increase of 7.6%[3]. The key investment areas include new power system construction, cross-region and cross-provincial power transmission capacity enhancement (targeting over 30% increase), and smart grid and distribution network construction, which is highly aligned with Xinfengguang’s main business[3].

From market data, Xinfengguang’s performance on the day showed significant breakout characteristics[1]:

Indicator	Value
Previous Close	47.60 yuan
Opening Price	48.14 yuan
Intraday High	55.60 yuan
Closing Price	Approximately 55.00 yuan
Daily Gain	Approximately +15.5%

Trading volume data shows that the trading was extremely active on the day, with a trading volume of

, which is the 3-month average trading volume (2.82 million shares)[1]. This increase in volume indicates that off-market funds are actively entering the market, but it may also mean that short-term speculative transactions account for a relatively high proportion.

From a technical analysis perspective, current indicators show that the stock price has entered the overbought zone[1]:

Indicator	Value	Signal Interpretation
RSI(14)	72.37	⚠️ Overbought Zone
52-Week High	55.60 yuan	Touched/Approaching 52-Week High
52-Week Range	20.46-55.60 yuan	—
Beta Coefficient	-0.16	Low Correlation with the Market

:

• Strong Resistance Level
  : 55.60 yuan (52-week high/today’s high)
• First Support Level
  : 52.18 yuan (Daily Limit Price)
• Second Support Level
  : 47.60 yuan (Previous Close)

Xinfengguang’s main business covers

, , and other segments[4]. The company’s business is highly matched with State Grid’s investment directions, laying a logical foundation for directly benefiting from policy stimulus.

The company also has a

concept, and its plasma vertical displacement fast control power supply has been applied to the EAST nuclear fusion experimental device. This unique theme provides differentiated valuation support for the company[4].

From a valuation perspective, the current PE is approximately

, and PB is approximately [1]. Considering the short-term increase, valuation pressure has increased.

It should be noted that the company’s performance was under significant pressure from January to September 2025: operating revenue was 1.217 billion yuan, up 9.78% year-on-year; net profit attributable to parent company was 83.03 million yuan,

[4]. The decline in net profit was mainly affected by the drag on gross profit margin from the energy storage business, which constitutes a risk factor at the fundamental level.

The power grid equipment sector broke out across the board today, with the sector index surging by over

in early trading, hitting a record high[3]. Component stocks such as China Electric Power Research Institute, Hanlan Cable Co., Ltd., and Siyuan Electric Co., Ltd. hit the daily limit, and the market’s only Power Grid Equipment ETF (159326) rose by [3]. As a core target in the sector, Xinfengguang directly benefited from the concentrated inflow of funds.

It is worth noting that according to data from January 8, the main net outflow in the past 3 days was

, and the main control degree is relatively low[4]. In addition, the company’s shareholders Jining Bochuang and Xu Lin plan to reduce their holdings by a total of no more than of the shares[1], and the share reduction plan may exert certain selling pressure on the short-term stock price.

:

• 🚨 The single-day increase exceeds 15%, RSI reaches 72.37, and the risk of technical correction is high
• 🚨 Valuation is in the historical high range, and valuation pressure is obvious after the overrise
• 🚨 The attitude of main funds is unclear, and the chip distribution is relatively scattered

:

• Net profit decreased by 30% year-on-year in 2025, and profitability has declined
• The shareholder share reduction plan may form phased selling pressure

• Policy Dividends
  : The 4 trillion yuan power grid investment plan provides a long-term growth engine for the industry, and the company’s orders are expected to increase significantly
• Energy Storage Business Potential
  : The production capacity of fund-raising projects is gradually released, and the contribution of the energy storage business is expected to increase
• Overseas Strategy
  : Overseas market expansion may open up incremental space

Based on comprehensive evaluation, today’s surge of Xinfengguang is mainly driven by

, which is a short-term surge driven by event-based stimulation.

Evaluation Dimension	Rating	Explanation
Fundamental Driver	⭐⭐⭐	The 4 trillion yuan investment policy is strong, and industry growth certainty is high
Technical Momentum	⭐⭐⭐	Good volume-price coordination, obvious breakout pattern
Short-Term Increase	⭐	The increase is too large, and it takes time to digest profit-taking orders
Valuation Rationality	⭐⭐	PE 41x plus overrise leads to valuation pressure

: . State Grid’s 15th Five-Year 4 trillion yuan investment plan provides mid-to-long-term growth logic for the power grid equipment industry. The company’s business is highly aligned with policy directions, with fundamental support for continuous benefits. However, the short-term increase has been large, and there is a demand for technical consolidation.

Investor Type	Recommendation
Existing Holders	Can continue to hold, set a stop-profit level of 52-53 yuan, consider reducing positions if it falls below the 5-day moving average
Off-Market Investors	It is not recommended to chase highs; you can wait for a pullback to around 50 yuan and stabilization before considering
Risk-Tolerant Investors	If there is a significant gap down (over -5%) tomorrow, you can use a small position to bet on a rebound

The core driver of Xinfengguang’s strong performance today is the major policy positive of

, which directly benefits the power grid equipment sector. As a power grid automation equipment supplier, the company’s main business is highly aligned with policy directions, with .

However, investors should note:

• 🚨 The short-term increase is too large, RSI has entered the overbought zone, and the risk of technical correction is high
• 🚨 2025 performance is under pressure, with net profit down 30% year-on-year
• 🚨 Valuation is in the historical high range
• 🚨 The shareholder share reduction plan and low main control degree constitute capital side pressure

: Policy positives provide medium-term support, but short-term risks of chasing highs should be guarded against. It is recommended to wait for a pullback and stabilization before selecting an opportunity to position. For existing investors, a reasonable stop-profit level can be set to protect profits; for off-market investors, it is advisable to patiently wait for a better entry opportunity.