Distribution Network Automation Policy and Business Trend Analysis

Distribution Network Automation Policy

According to a recent report by the State Grid Corporation of China, the Ministry of Transportation Inspection Department of the State Grid held a launch meeting at the end of September to initiate the standardization construction of distribution networks. During this meeting, key tasks were outlined and specific plans for the standardization of distribution networks were put into action. Distribution automation has become a central focus in power grid development. Following three rounds of pilot project assessments, standardization efforts are now underway. In the near future, new guidelines, equipment standards, and construction plans will be released. The overall strategy for the distribution network sector is being reemphasized to ensure smooth progress.

Power Equipment Companies

Tracy recently published its 13th quarterly report, showing that in the first three quarters of the year, the company achieved total revenue of 792 million yuan, representing a 78.20% year-on-year increase. Net profit attributable to shareholders of listed companies reached 87.37 million yuan, up 53% compared to the same period last year. For 2013, the company estimated net profit attributable to shareholders to be between 116.6 million and 128.6 million yuan, reflecting an increase of 45% to 60% over the previous year. This strong performance was driven by two main factors: first, a significant rebound in railway market box bidding; second, continued expansion of sales in the power grid market. Not only did the company make breakthroughs in provincial networks, but it also entered the State Grid market. Additionally, through external mergers and acquisitions, the company expanded its sales within the power grid, boosting operating income by 174 million yuan. Meanwhile, Inovance Technology’s technology release is expected to result in a 28%-39% year-on-year increase in revenue from January to September, with net profit rising by 63%-76% during the same period.

New Energy Companies

Taisheng Wind Energy expects net profit attributable to shareholders of listed companies from January to September 2013 to range between 55 and 68 million yuan, marking an increase of 3.48% to 27.94% compared to the previous year. Yinxing Energy, on the other hand, reported losses of between 480 million and 580 million yuan for the same period, including a loss of approximately 93.4 million yuan in the third quarter—though it saw a small profit of 660,000 yuan during that quarter. Xindaxinxin plans to acquire a 32% stake in Yicheng New Energy held by LDK and then sell 100% of Yicheng New Energy's equity to Pingmei Shenma Group.

As distribution network construction continues to advance, various electrical equipment companies have already begun to sharpen their strategies and actively expand into the market. This trend indicates a growing focus on infrastructure development and long-term growth opportunities in the energy sector.