Some people are happy about the most fire and snow

Snow disaster, is someone happy? The prospect of power transmission equipment manufacturers is promising

the severe freezing rain and snow disaster that ravaged some provinces of China at the end of last month has brought hope to at least one kind of Companies: they are power transmission equipment manufacturers

China is currently repairing the severely damaged electricity, so these companies are likely to get a boost in the short term. Analysts said that the Chinese government plans to invest tens of billions of dollars to upgrade existing electricity to meet the power demand brought by economic growth, so in the longer term, such enterprises should also benefit from it

at present, some of the largest companies in this industry are multinational enterprises, but two Chinese suppliers are also expanding their market share. According to the latest available data, the transformer production capacity of TBEA Co., Ltd. (D., referred to as TBEA) headquartered in Xinjiang, the western province of China, has ranked among the top three in the world in 2005, second only to Switzerland's arcia bramble (Power: 120wabb) and Germany's Siemens (Siemens). Hebei Baoding Tianwei BaoBian Electric Co., Ltd. (D., Tianwei baobian for short) is also a major manufacturer in the transformer industry

TBEA and Tianwei baobian are both listed on the Shanghai Stock Exchange, and their share prices soared in 2007. Many analysts said that these two stocks are a good choice for long-term investors, especially when the share price has fallen slightly

TBEA's performance in 2007 was much stronger than the market. The Shanghai Composite Index nearly doubled last year, while the stock rose by more than 300%

Tianwei baobian goes 6 The realization of cement standard curing box is better, and the stock price has increased by more than five times. But so far this year, both stocks have followed the downward trend of the market

data from the stateelectricityregulatorycommission showed that affected by the freezing rain and snow in January, there were about 39000 damaged and decommissioned power lines nationwide, nearly 2000 substations, and direct economic losses of 18billion yuan ($2.5 billion). The Chinese government promised to complete power restoration and reconstruction by the end of March. Ding Chaoyu, an analyst at greatwallsecurities in Shenzhen, said that the repair and reconstruction work has brought huge short-term opportunities for TBEA and Tianwei baobian

however, he believes that the current valuations of the two companies' stocks are too high, and investors should wait until the stock price falls before buying

it is not difficult to understand why many analysts believe that the transmission industry has a promising future. In recent years, China has built many power plants to deliver energy to various industries and increasingly affluent urban residents. However, the development speed of electricity is relatively slow, which has become the bottleneck of periodic power shortage

Yang Jun, an analyst at unitedsecurities, wrote in a report on January 30 that future maintenance projects will drive the growing demand for transmission equipment. He suggested investors increase their holdings of TBEA shares

TBEA and Tianwei Baodian are the main equipment suppliers of China's two largest power projects - the west to East power transmission project and the Three Gorges dam. According to the data of State Grid Corporation of China, abb ranked first in China's transformer market with 22% market share in 2007. TBEA ranks second with a market share of 20%