Hangzhou Cable Co. Ltd. amid a buoyant A‑share market

The Shanghai Stock Exchange recorded a broad‑based rally on 9 February 2026, as the Shanghai Composite Index climbed 1.41 % to 4,123.09 points and the Shenzhen Composite Index posted a 2.17 % gain. The surge was driven largely by the electric‑power equipment and industrial machinery sectors, which collectively attracted more than 180 billion CNY in net institutional inflows. Among the most active stocks were several power‑grid and cable manufacturers that benefit from China’s continued investment in transmission infrastructure.

Hangzhou Cable Co. Ltd. (ticker 600751) is a prominent player in that space. The company’s portfolio spans aluminum‑alloy conductors, overhead wires, middle‑low‑power cables, and special power cables, and it markets its products worldwide. Despite its strong market position, Hangzhou Cable’s share price has been highly volatile. As of 5 February, the closing price stood at 13.71 CNY, matching the 52‑week high and reflecting a sharp rally that has already reached its peak for the year. The firm’s market capitalization is approximately 9.48 billion CNY, but its price‑to‑earnings ratio remains negative at ‑47.32, a consequence of the company’s modest earnings relative to its share count.

1. Market‑wide momentum and the power‑grid narrative

The day’s trading volume surpassed 2.27 trillion CNY, a 5 % increase from the previous session. This liquidity influx was concentrated in sectors linked to infrastructure and renewable energy. Analysts noted that China’s 15‑year “grid‑upgrade” plan—recently endorsed by the National Development and Reform Commission—has accelerated funding for high‑voltage transmission lines and grid‑automation projects. Companies like Hangzhou Cable, which supply the raw materials for these projects, stand to benefit from the resulting demand spike.

In addition to the macro‑policy backdrop, electric‑grid ETFs captured investor attention. The only ETF that tracks the China Securities Index on “electric‑grid equipment” (ticker 159326) surged by 2.18 % on 9 February, with a 6.41‑billion‑CNY trading volume. Its holdings included several cable‑manufacturing firms, suggesting that capital was flowing into the sector as a whole.

2. Hangzhou Cable’s performance relative to peers

While the broader market enjoyed a positive day, Hangzhou Cable’s 13.71‑CNY close was the 52‑week high, yet its daily change was muted compared with some of its peers. The firm’s volatility is evident when viewed against its 52‑week low of 5.23 CNY reached on 8 April 2025. The company’s share price is still heavily influenced by short‑term sentiment rather than long‑term fundamentals.

On the day in question, institutional flows into Hangzhou Cable were not highlighted in the public reports that listed net inflows for other power‑grid companies such as Hangzhou Electric Power Co. and Hunan Power Construction Co. Consequently, it appears that the day’s institutional buying was distributed across the sector rather than concentrated on Hangzhou Cable.

3. Analyst outlook and risk considerations

Given the company’s negative earnings multiple, analysts caution that the current upside may be driven more by market sentiment than by earnings growth. The price‑to‑earnings ratio of –47.32 indicates that the market expects a turnaround that has not yet materialized in the financial statements. Investors should be aware that:

  • Revenue growth for Hangzhou Cable is currently modest relative to the broader power‑grid expansion, and the company has not yet demonstrated a clear path to profitability.
  • Competitive pressures from other domestic cable manufacturers and from international suppliers could compress margins.
  • Regulatory risks exist if the pace of grid upgrades slows or if the government revises its support for infrastructure projects.

On the upside, the company’s global sales network and its focus on high‑performance conductors position it well to capture demand from overseas markets, particularly in regions investing heavily in renewable energy infrastructure.

4. Summary

On 9 February 2026, the Shanghai Stock Exchange witnessed a strong rally driven by the power‑grid and industrial machinery sectors, buoyed by policy support for grid upgrades and by significant capital inflows into electric‑grid ETFs. Hangzhou Cable Co. Ltd. reached a 52‑week high on the same day, yet its performance was not singled out among the top institutional buyers. The firm’s negative P/E ratio and modest earnings signal that while the sector is attractive, investors should remain vigilant about the company’s fundamentals and potential valuation risks.