Huaming Equipment (002270) Limit-Up Analysis: Interpretation of UHV Technological Breakthroughs and Capital Behavior

Huaming Equipment (002270.SZ) surged to a limit-up on January 19, 2026, closing at RMB32.49 per share, with a full-day gain of 9.99%, turnover of RMB516 million, turnover rate of 1.80%, and total market capitalization of approximately RMB29.1 billion [0]. Notably, on the day before the limit-up (January 18), the company just released an important research transcript, disclosing information about a major technological breakthrough in the UHV field [1]. The high coincidence of this time node indicates that the content of the research transcript became the core catalyst triggering the stock’s limit-up.

From a technical perspective, the stock price broke through the previous historical high on the day, with a trading volume of approximately 161,000 hands, which was significantly higher than the recent average, forming a typical breakthrough limit-up pattern [0]. The stable limit-up closing orders indicated strong buying interest in the market.

The research transcript shows that Huaming Equipment has made substantial progress in the EHV/UHV field [1]. This is reflected in the following three key dimensions:

First, in the DC UHV field, the company successfully achieved mass deployment of on-load converter transformers in 2025, with its technical level reaching industry benchmark standards. This means that the company has broken the long-term monopoly of overseas manufacturers in this high-end niche market, transforming its role from a “follower” to a “peer runner”.

Second, in the EHV segment, the company achieved a significant increase in market share for the 500kV and 750kV voltage classes in 2025 [1]. These two voltage classes are core components of power grid construction, and the increase in market share directly reflects the market’s recognition of the technical strength and quality of the company’s products.

Third, from a strategic positioning perspective, the company has clearly stated that it is confident in gradually increasing its market share in the UHV field through accumulated experience, just as it has done in other low-voltage classes [1]. This statement conveys the management’s full confidence in the company’s technical strength and market competitiveness.

The company has continuously released share repurchase progress announcements since 2025, disclosing repurchase progress in multiple batches on January 6, 2026, December 3, 2025, and November 4, 2025, among others [0]. The continuous repurchase actions convey the management’s confidence in the company’s long-term value to the market, while also directly reflecting returns to shareholders.

Data shows that leveraged capital has continuously flowed into Huaming Equipment recently. On January 14, 2026, the single-day margin purchase amount reached RMB62.76 million, and the margin balance climbed to RMB286 million on the same day [0]. Looking at a longer time frame, the margin balance quickly increased from RMB182 million at the beginning of January to RMB283 million in mid-January, representing a growth rate of over 50%, indicating the positive attention of margin capital to this stock [0].

As of January 9, 2026, the number of shareholders of the company was 30,110, a month-on-month decrease of 1,729, or 5.43% [0]. Previous data from November 28, 2025 showed that the number of shareholders was 31,142, a month-on-month decrease of 1,429, or 4.38% [0]. The continuous decline in the number of shareholders indicates that chips are concentrating in the hands of institutional investors, which to a certain extent explains why the stock price was able to form a breakthrough rise — when chips are concentrated, selling pressure is relatively light, making it easier to form an upward trend.

From the perspective of sector performance, the Industrials sector led gains on January 19, rising 0.42%, while the Utilities sector fell 2.95% [3]. As a target in the power equipment sector, Huaming Equipment’s limit-up showed a certain degree of correlation with the overall strength of the Industrials sector, reflecting the market’s overall preference for industrial cyclical stocks.

The market’s positive sentiment towards Huaming Equipment mainly stems from the following expectations: State Grid’s RMB4 trillion new power system investment plan, and the target of 20 GW annual growth in wind and solar installed capacity, which are expected to bring an order boom for power grid equipment enterprises [2]. Against this policy background, Huaming Equipment, as an important participant in the UHV industry chain, naturally receives key attention from the market.

Huaming Equipment’s breakthrough in the UHV on-load converter transformer field has far-reaching strategic significance. On-load converter transformers are one of the core equipment in DC UHV transmission systems, and this market has long been dominated by overseas manufacturers. The company’s mass deployment not only marks a technological breakthrough, but also means that domestic substitution has been achieved in a “chokepoint” link. This progress is highly aligned with the national policy direction of promoting self-reliance and self-improvement in science and technology, and is expected to receive continuous policy support.

More importantly, the company stated that it is confident in gradually increasing its UHV market share just as it has done in other low-voltage classes [1]. Considering the leading position the company has already established in the low-voltage market, this statement is highly credible. Historical successful experience shows that the company has the ability to achieve market breakthroughs in new technological fields.

The phenomenon of continuous decline in the number of shareholders and concentration of chips deserves in-depth analysis. In the A-share market, a decrease in the number of shareholders usually means that institutional investors or major shareholders are accumulating chips. In the case of Huaming Equipment, this process was accompanied by a continuous rise in stock price, presenting a typical pattern of “rising volume and price”.

The impact of increased chip concentration on stock price is two-sided: on one hand, relatively light selling pressure is conducive to stock price increases; on the other hand, when chips are too concentrated, concentrated selling triggered by profit-taking may also cause sharp fluctuations in the stock price. Investors need to closely track the changing trend of the number of shareholders and changes in the positions of institutional investors.

Currently, Huaming Equipment’s price-to-earnings (P/E) ratio is 37.59x, and its static P/E ratio is 40.41x [2], which is at a relatively high level historically. From a valuation perspective, the current price has already largely reflected the market’s expectations for the company’s future growth. This means that further increases in the stock price in the future need to be verified by performance realization — that is, orders in the UHV field can be truly converted into revenue and profit growth.

: The current P/E ratio of 37.59x is already at a relatively high historical level [2]. If subsequent performance fails to meet market expectations, the stock price may face pressure from valuation correction. Investors need to recognize that a relatively high valuation level means that the market’s expectations for the company’s future growth are already quite sufficient.

: There is uncertainty as to whether the UHV technological breakthrough mentioned in the research transcript can be converted into actual orders and performance. The period from technological breakthrough to the implementation of bulk orders usually takes a long time, and may be affected by various factors, including customer verification cycles and competitors’ response strategies.

: Power grid investment is greatly affected by policy orientation and economic cycles. If macro policies are adjusted or economic growth slows down, the scale of power grid investment may be affected, which in turn will impact Huaming Equipment’s order acquisition.

: The stock price has seen a significant short-term increase (continuously hitting new historical highs), and may face pressure from profit-taking. The absorption capacity on the day after the limit-up and the stability of closing orders are technical indicators that need to be continuously observed intraday.

: Against the background of the “Double Carbon” goals and new infrastructure policies, UHV construction has entered a new peak period. State Grid’s power grid investment plan and the construction of new power systems provide solid policy support for the demand for UHV equipment.

: Huaming Equipment’s breakthrough in the UHV on-load converter transformer field coincides with a critical period of accelerated domestic substitution. The policy orientation of supply chain security and independent controllability is conducive to the company’s expansion in the high-end market.

: With institutional investors continuously building positions, the increase in chip concentration provides relatively stable support for the stock price. If institutional capital continues to flow in, the stock price is expected to receive continuous buying support.

From a time window perspective, the following time nodes deserve key attention: the company will release its 2025 annual report on February 27, 2026 [0], at which time performance data will serve as an important basis for verifying the improvement of the company’s fundamentals. In addition, attention should be paid to winning bid announcements for UHV projects, as this information will directly affect the market’s expectations for the company’s UHV business development.

The core driving force behind Huaming Equipment’s current round of limit-up stems from the improved expectations of its fundamentals. The research transcript released on January 18 shows that the company has achieved mass deployment in the DC UHV on-load converter transformer field, with its technology reaching industry benchmark levels, while also achieving a significant increase in market share in the 500kV and 750kV EHV segments, successfully breaking the monopoly of overseas manufacturers [1]. This technological breakthrough marks the company’s transformation from a “follower” to a “peer runner” in the high-end UHV field, with far-reaching strategic significance.

From the capital perspective, margin purchases remain active, with the margin balance quickly increasing from RMB182 million at the beginning of January to RMB283 million in mid-January, representing a growth rate of over 50% [0]. The number of shareholders has continued to decline, with chips concentrating, indicating that institutional investors are actively building positions [0]. The positive changes in capital behavior resonate with the improved expectations of fundamentals, supporting the stock price to form a breakthrough limit-up.

However, the current P/E ratio of 37.59x is already at a relatively high historical level [2], meaning that the market’s expectations for the company’s future growth are already quite sufficient. Further increases in the stock price in the future need to be verified by performance realization — that is, orders in the UHV field can be truly converted into revenue and profit growth. In the short term, due to the significant gain, the stock price may face pressure from profit-taking, and investors need to pay attention to subsequent changes in trading volume and order implementation.

: Progress of domestic substitution in UHV, release of policy dividends from power grid investment, changing trend of chip concentration, and annual report performance.