Shanghai Electric (02727.HK) as HK Hot Stock: Strong Performance, Tech Innovation & Growth Drivers

Shanghai Electric (02727.HK) is a leading comprehensive industrial equipment manufacturer in China, with business segments covering new energy, efficient clean energy, industrial equipment, and modern services [0]. In 2025, its stock performance has been strong: 1-year gain of 24.44% and YTD gain of19.65%, outperforming the broader market [0].

Financial results are solid: H1 2025 revenue reached 543.03 billion yuan (up8.9% YoY), net profit 8.21 billion yuan (up7.3% YoY), and new orders exceeded 1 trillion yuan (1098.1 billion yuan), laying a foundation for future growth [3]. Q3 2025 revenue was27.78 billion yuan with EPS of0.016 yuan, exceeding expectations [0].

Tech innovation is a key driver: The company is a leader in controllable nuclear fusion, participating in the ‘Artificial Sun’ project and being one of the most comprehensive suppliers of fusion reactor core equipment [2]. At CIIF2025, it showcased cutting-edge technologies (like Hualong One, 300MW hydrogen-mixed gas turbine, 500kW/2MWh flow battery) and won 6 awards [5]. It also has a full robot ecosystem (LINGTENG, LINGHANG, etc.) [0].

International expansion: It has obtained multiple safety certifications for international projects (Dubai, Oman, Bangladesh) [6], enhancing its global competitiveness.

1. Nuclear Fusion Leadership
   : As a core supplier for the ‘Artificial Sun’ project, Shanghai Electric is well-positioned to benefit from the development of this emerging field [2].
2. Strong Order Book
   : The over 1 trillion yuan new orders in H1 indicate strong future revenue growth potential [3].
3. Tech Diversification
   : Its presence in fusion, clean energy, and robotics creates multiple growth engines [0].
4. Global Recognition
   : International certifications and project wins demonstrate its ability to compete in global markets [6].

• Continued growth in fusion tech and clean energy sectors.
• Expansion of robot ecosystem into new applications.
• Leveraging strong order book for future revenue.

• Potential delays in tech development (e.g., fusion projects).
• Global economic fluctuations affecting international project demand.
• Competition in the clean energy and robot sectors.

Shanghai Electric (02727.HK) has shown strong performance in 2025, driven by its leadership in fusion tech, solid financials, record orders, and tech innovations. Its international certifications and diversified business segments further strengthen its position. Investors should note the potential growth opportunities from its emerging tech sectors, while being aware of possible risks related to tech development and global markets.