Key takeaway

In 2025, the company recorded newly effective orders of RMB117.251bn, up 15.93% YoY, with order growth exceeding expectations; by the end of 2025, inventory increased by 21% compared with the beginning of the year, and contract liabilities rose by 16.4% from the beginning of the year, reflecting strong support for both orders and performance. Export orders increased significantly, verifying that global high-density power sources have entered a boom investment cycle. In 2025, newly effective contracts in the international market exceeded RMB14bn, accounting for 12% of total orders; the company’s overseas business revenue reached RMB5.139bn in 2025, representing 6.5% of total revenue, with both the scale and share of overseas business rising significantly. The company announced that the board of directors approved Dongfang Turbine to carry out the core capacity expansion project (Phase I) for self-developed gas turbines, with a total investment of RMB0.739bn. We emphasize the company’s main growth logic going forward: Orders of overseas gas turbine giants have been scheduled through 2031. Such a large demand gap combined with rigid supply will inevitably continue to evolve and bring opportunities to China’s industrial chain. This extends beyond gas turbines, as global investment in reliable and stable power sources has entered a boom cycle, from which the company will fully benefit.

Event

In 2025, the company achieved total operating revenue of RMB78.615bn, up 12.80% YoY; net profit attributable to shareholders of the parent company was RMB3.831bn, up 31.11% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB3.192bn, up 61.17% YoY; newly effective orders for the full year reached RMB117.251bn, up 15.93% YoY. In 1Q26, the company achieved total operating revenue of RMB17.216bn, up 5.68% YoY; net profit attributable to shareholders of the parent company reached RMB1.585bn, surging 37.41% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB1.179bn, up 11.49% YoY.

Risks

Worse-than-expected investment completion in electricity infrastructure: As the company primarily focuses on power equipment, its performance is closely linked to the investment in wind power, gas-fired power, thermal power, hydropower, and nuclear power. Worse-than-expected investment completion could impact the company's performance. Drastic fluctuation of upstream prices: Fluctuations in raw material (steel) prices may impact the company's performance. Less-than-expected downstream demand: Power sources investment is associated with electricity demand. Weaker demand may result in less new investment in power sources, therefore impacting the company's performance. Capacity expansion progress below expectations, and gas turbine business advancement below expectations: Some of the company’s current capacity remains insufficient. If expansion falls short of expectations, it will affect the company’s external sales volume. Revenue recognition below expectations: If revenue recognition falls short of expectations, performance will also fall short of expectations. Among segments, thermal power contributes the largest share of the company’s gross profit. Changes in thermal power revenue recognition will have a relatively large impact on the company’s net profit. If thermal power sales revenue deviates, it will affect the earnings forecast.