From cables to backup power: computing power's "power purchase" reshapes the growth logic of power equipment companies

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With the conclusion of third-quarter report disclosures, the performance of companies in the power equipment sector has come to light. Against the backdrop of pressure on traditional equipment tendering and flat gross margins, a group of companies that made forward-looking arrangements in AIDC power supply and distribution, backup power, and ultra-high-voltage delivery have delivered impressive results through new businesses, with orders surging, successfully establishing a "second growth curve" for their enterprises.

Cables: Computing power demand opens up premium space

For a long time, the cable industry has often been labeled "strongly cyclical," with its performance highly constrained by the pace of power grid infrastructure construction and fluctuations in copper prices, while low-price involution in traditional fields has continued to squeeze the industry's profit space.

With the release of third-quarter reports, structural divergence within the sector has become prominent. Leading companies anchored in high-value-added scenarios such as computing power supporting facilities are expected to break free from the constraints of the traditional cycle and achieve substantial performance growth.

Among them, YOFC (601869.SH) saw its net profit attributable to shareholders for the first three quarters surge more than 12-fold year-on-year, with both volume and price increases in its main products driving performance to a record high. Notably, Q3 performance growth further accelerated, with single-quarter revenue of 9.316 billion yuan, up 139.42% year-on-year; net profit attributable to shareholders of 3.203 billion yuan, up 1,741.52% year-on-year; and net profit after deducting non-recurring gains and losses of 3.056 billion yuan, up 2,003.37% year-on-year.

The company stated that the performance growth was mainly affected by the accelerated construction of intelligent computing centers, with the industry entering an upward cycle, the revenue structure of its main business improving, and the sales volume and average unit price of its main products increasing significantly year-on-year.

Hengtong Optic-Electric (600487.SH) also posted a sharp increase in performance, achieving revenue of 64.367 billion yuan in the first three quarters, up 29.72% year-on-year; net profit attributable to shareholders of 6.163 billion yuan, up 159.42% year-on-year. Among this, net profit attributable to shareholders in the third quarter was 3.044 billion yuan, up 299.1% year-on-year.

Power transmission and distribution: solid foundation, computing power spawns incremental dividends

In the smart power transmission and distribution equipment sector, the pattern of traditional businesses providing support and emerging businesses accelerating is particularly evident. Concentrated ultra-high-voltage delivery combined with growing demand for AIDC-specific power distribution has become the engine of Q3 performance growth for some companies.

China XD Electric (601179.SH) reported operating revenue of 18.791 billion yuan in the first three quarters, up 10.8% year-on-year; net profit attributable to shareholders of 1.154 billion yuan, up 22.95% year-on-year. Among this, third-quarter revenue was 6.578 billion yuan, up 16.27% year-on-year; net profit attributable to shareholders was 466 million yuan, up 36.88% year-on-year and up 36.67% quarter-on-quarter.

At the company's recent performance briefing, it stated that orders continued to grow in the first three quarters of this year, current orders on hand are ample, and the bid-winning volume of ultra-high-voltage products and the proportion of ultra-high-voltage in new orders both increased year-on-year.

In the computing power distribution track, TGOOD (300001.SZ) has become a benchmark for high growth. In the first three quarters of this year, the company's revenue was 10.87 billion yuan, up 10.53% year-on-year; net profit attributable to shareholders was 810 million yuan, up 18.12% year-on-year. Among this, third-quarter revenue was 4.234 billion yuan, up 18.32% year-on-year; net profit was 382 million yuan, up 6.62% year-on-year and up 7% quarter-on-quarter.

The company stated in its announcement that since the beginning of this year, both its power equipment business, mainly prefabricated cabin substations, and its electric vehicle charging network business have maintained steady growth. In the first three quarters, the company's power equipment segment won bids exceeding 15 billion yuan, up more than 16% year-on-year, among which bids won for computing power center-related equipment exceeded 1.5 billion yuan, up more than 300% year-on-year, and overseas business bid awards exceeded 1.3 billion yuan, up nearly 30% year-on-year. Currently, the company has ample orders on hand and expects production capacity to remain saturated in the fourth quarter of this year.

Computing power backup power breaks through as traditional leader emerges from cyclical trough

The extreme requirements of computing power clusters for power supply stability and uninterrupted operation have spawned rigid demand for high-power backup power supplies, breaking the traditional boundaries of the power equipment track. As a leading domestic internal combustion engine manufacturer, Weichai Power (000338.SZ) also set a record high in third-quarter performance, driven by an increased share of high-value products such as data center power generation.

Financial reports show that in the first three quarters of this year, Weichai Power achieved revenue of 181.17 billion yuan, up 6.2% year-on-year; net profit attributable to shareholders of 10.66 billion yuan, up 20.06% year-on-year; gross margin of 22.88%, up 1.5 percentage points year-on-year. Among this, Q3 revenue was 58.01 billion yuan, net profit attributable to shareholders was 2.96 billion yuan, and net profit after deducting non-recurring gains and losses was 3.22 billion yuan, a record high for the company.

In fact, as the foundation of the company's traditional business, since the second half of this year, the prosperity of the domestic heavy truck industry has come under some pressure. According to production and sales data from the China Association of Automobile Manufacturers, in the first three quarters of 2026, cumulative sales of domestic heavy trucks were 929,000 units, up 12.96% year-on-year, but the cumulative growth rate narrowed by about 3 percentage points from the end of August, and single-month sales in September already showed a year-on-year decline.

Weichai Power's ability to achieve its current performance lies in the growth curve formed by its electric power energy business. In response to the industrial trends of greening, intelligentization, and computing power, the company has deeply entered the high-growth data center track with a product matrix of large-bore diesel generator backup power, gas engine main power, and SOFC medium- to long-term main power, and its electric power energy business is gradually becoming a new growth point.

The M-series high-end engines, with power generation as the core application scenario, sold more than 11,000 units, up more than 40% year-on-year, already exceeding last year's full-year sales scale. Among them, sales of data center power generation products were more than 2,700 units, up nearly 200% year-on-year, with sales in Q3 alone reaching about 1,300 units.

Judging from the signals in the third-quarter reports, the rigid "buy electricity" demand brought by AI computing power expansion is reconstructing the value logic of the power equipment industry chain. From high-end cables and power transmission and distribution to high-power backup power supplies and computing-power-specific energy storage, dividends across the entire chain of emerging tracks continue to be released.

Industry insiders expect that the value manifestation of the power equipment sector will subsequently shift from single power grid investment to core indicators such as the scale of companies' computing power order implementation, the proportion of high-value-added products, and the progress of overseas market delivery. Segment leaders that have already achieved volume ramp-up of new businesses and high performance growth in Q3 are expected to continue benefiting from the wave of computing power infrastructure expansion and embark on a long-term differentiated growth stage.

(Source: Cailian Press) Middle of the body Embedded advertisement