China Power Equipment: Key Takeaways from FY25 Results Calls of Xuji and Pinggao
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Key Views
Xuji's Q1 2026 gross margin fell over 4 percentage points to 19% on low-price meter orders and procurement effects. Management guided sequential margin improvement, especially in H2 2026, driven by new meter launches, stabilized pricing, and UHV revenue recognition exceeding RMB 2 billion. Raw material impacts are limited. Pinggao's FY25 new contracts rose 5% to RMB 13.7 billion, and it holds 34 undelivered 1000kV GIS units. Both companies are shifting toward equipment-only exports, moving away from traditional EPC models.
Outlook
Margin pressure from low-price orders should fade by H2 2026. Xuji targets full-year order growth of approximately 15%.
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