Analysis of the Strength of the Hong Kong Stock Market Power Equipment Sector and Investment Evaluation of Dongfang Electric

2025年12月12日, the power equipment sector in the Hong Kong stock market strengthened collectively and became a market highlight. Dongfang Electric (01072.HK) rose by 13.59%, Harbin Electric (01133.HK) by 11.37%, and Shanghai Electric (02727.HK) by 8.68% [3]. The entire sector showed a general upward trend, forming an obvious sector linkage effect.

1. Policy Support
   : Huatai Securities’ research report points out that under the “stable growth” + “anti-involution” policy combination, power demand in 2025 is expected to outpace GDP growth [4]
2. Unexpected Consumption Growth
   : Institutions reaffirm that power consumption in the fourth quarter may exceed expectations; as the high base effect of electricity demand in the first three quarters is eliminated, electricity demand will be further consolidated [4]
3. Infrastructure Investment
   : The construction of a unified national power market is accelerating, and grid investment will maintain a steady growth trend during the 15th Five-Year Plan period

• Clean Energy Order Proportion
  : 67.25% of the company’s orders come from clean energy, which is deeply in line with the dual-carbon policy [1]
• Wind Power Joint Venture Project
  : A wind power joint venture project of nearly 1 billion yuan demonstrates the company’s active layout in the new energy field [1]
• Technical Breakthrough
  : The self-developed F-class heavy-duty gas turbine G50 unit has been exported, marking China’s first overseas delivery of a complete heavy-duty gas turbine unit [6]

According to the latest data [0]:

• 2025 Q3 Performance
  : Revenue increased by 16.41%, net profit attributable to parent company increased by 13.02%
• Profitability
  : Net profit margin 4.25%, ROE reached 7.88%
• Financial Health
  : Current ratio 1.11, showing good short-term solvency

• Successful H-share Placement
  : Raised HK$1.07 billion, 50% for R&D and 50% for channel expansion [1]
• Capital Strength Improvement
  : Capital reserve increased by 31.45% year-on-year, providing financial security for future development [1]

• Technical Breakthrough
  : MACD indicator formed a golden cross, and the stock price broke through the key resistance level [1]
• Main Fund Favor
  : Significant inflow of large orders, active participation of main funds [1]

From the technical chart, it can be seen that Dongfang Electric performed strongly in 2025, with a year-to-date increase of 160.37%, showing the market’s full recognition of its fundamental improvement.

• Data Center Construction
  : Global AI development promotes data center construction, driving demand for power equipment
• Overseas Market Expansion
  : The company successfully won the 50MW combined cycle power generation project in Jiangbur State, Kazakhstan, and overseas orders continue to grow [6]

• Heavy-duty Gas Turbine Technology
  : G50 gas turbine successfully exported, breaking the monopoly of international giants
• Complete Industrial Chain
  : Covers the entire industrial chain of thermal power, hydropower, nuclear power, wind power, solar energy, etc.

• P/E Ratio
  : 25.23 times, in a reasonable range
• P/B Ratio
  : 1.85 times, showing the market’s recognition of its net asset value

From historical data [0], Dongfang Electric’s highest price this year reached HK$119.90, which is a large correction from the current price, showing high stock price volatility, with a maximum single-day drop of -15.31%.

The power equipment industry is facing “involution” pressure; although the policy proposes “anti-involution”, the industry competition pattern still needs attention.

The company’s performance is highly correlated with policies, and policy adjustments may affect the company’s development.

• Pay attention to the specific support of the “15th Five-Year Plan” for new energy and grid construction
• Track the implementation progress and supporting measures of the dual-carbon policy

• Focus on evaluating enterprises’ breakthrough capabilities in key technical fields
• Pay attention to the proportion of R&D investment and the number of technical patents

• Focus on the proportion of overseas orders and high-value-added orders
• Analyze the progress of order execution and the rhythm of revenue recognition

• Choose leading enterprises with core technical advantages and complete industrial chain layout
• Pay attention to companies with stable finances and sufficient cash flow

• Closely follow policy catalysis events and technical breakthrough news
• Seize band operation opportunities combined with technical indicators

• Set reasonable stop-loss positions and control the position of individual stocks
• Diversify investments to avoid over-concentration in a single sub-industry

Company	Stock Code	Recent Increase	Core Advantages	Risk Points
Dongfang Electric	01072.HK	13.59%	Heavy-duty gas turbine technology, complete industrial chain	High stock price volatility
Harbin Electric	1133.HK	11.37%	Motor technology advantages	Relatively lagging performance
Shanghai Electric	2727.HK	8.68%	Comprehensive equipment manufacturing	Business diversification risk

• Correction period after positive policy announcements are released
• Value discovery period after performance announcements
• Trend tracking period after technical breakthrough confirmation

• Stock price deviates significantly from fundamentals
• Industry policies are adjusted
• Macroeconomic environment deteriorates

Behind the strength of the power equipment sector in the Hong Kong stock market are the joint effects of three core driving forces:

. As a leading company in the sector, Dongfang Electric’s sharp rise has certain sustainability, but investors need to recognize:

1. Long-term Optimism
   : Driven by both energy transformation and AI development, the prosperity of the power equipment industry is expected to continue
2. Short-term Volatility
   : The stock price has risen sharply, and technical adjustments may occur in the short term
3. Select Individual Stocks
   : It is recommended to focus on enterprises with core technical advantages and overseas market expansion capabilities
4. Risk Control
   : Reasonably control positions, set profit-taking and stop-loss levels, and avoid the risk of chasing high prices

Investors should adopt differentiated investment strategies based on their own risk tolerance and investment horizon, and do a good job in risk management while seizing industry opportunities.

— References:
[0] Gilin API Data - Dongfang Electric Company Overview and Financial Data
[1] Dongfang Electric’s Limit-up Analysis on December 12, 2025: New Energy Layout + H-share Placement + Performance Growth, NetEase News
[2] Hong Kong Stock Market Close | Three Major Indices Fluctuate and Close Down on Weekly Line; AI Application Concept Strengthens Against the Trend to Ignite Structural Market, Cailian Press
[3] Hong Kong Stock Market Power Equipment Stocks Surge; Dongfang Electric Rises Over 7%; Institutions Point to Possible Exceeding Expectations in Power Consumption, Sina Finance
[4] [Hong Kong Stock Market Review] Three Major Indices Rebound Collectively! Power Equipment, Gold Stocks, etc. Rise Generally, Caihua Think Tank Network
[5] Hong Kong Stock Market Power Equipment Stocks Expand Gains in the Afternoon; Dongfang Electric Rises 15.97%, Daily Economic News
[6] Capital Goods - 2026 Theme, CMB International Research Report