Morgan Stanley initiates Sieyuan Electric stock with Overweight rating

Published 02/07/2025, 12:34
Morgan Stanley initiates Sieyuan Electric stock with Overweight rating

Investing.com - Morgan Stanley (NYSE:MS) initiated coverage on Sieyuan Electric Co Ltd (SZ:002028) with an Overweight rating and set a price target of RMB102.00.

The research firm highlighted Sieyuan’s strong positioning among Chinese peers in international markets, citing its broad product portfolio as a key advantage. The company is noted as the only domestic player with exposure to both primary and secondary grid equipment.

Sieyuan has been expanding its product offerings since its establishment in 1993, beginning with switchgear and GIS, which represented more than 40% of the company’s revenue mix in 2023/24 and maintains strong market share in China.

The company later moved into transformers, which accounted for over 20% of revenue in 2023/24, with more than 90% of these products being exported. Morgan Stanley noted that Sieyuan expects to double its transformer production capacity this year.

Sieyuan has also diversified into reactive power compensation products, representing 15-20% of revenue in 2023/24, with demand driven by renewable energy adoption and expanded industrial applications, along with other key secondary equipment areas such as protective relay.

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