TGC Financial Update: Key Developments and Market Movements
Jiangsu Tongguang Electronic Wire and Cable Company Limited (TGC), a prominent player in the electrical equipment sector, has been in the spotlight recently due to several significant developments. Listed on the Shenzhen Stock Exchange, TGC specializes in developing, manufacturing, and selling specialty cables and wires for high-voltage, EHV, and UHV transmission, as well as high-temperature resistant cables for aerospace and high-frequency communication applications.
Recent News Highlights
Investor Inquiry on Project Involvement
On July 23, 2025, an investor inquired about TGC’s involvement in the Yarlung Tsangpo River Hydropower Station project. The company clarified that its cables have not been used in this project. This response was provided by TGC’s investor relations team, emphasizing transparency and addressing investor concerns directly.
Market Movements and Sector Boost
The broader market saw mixed performances on July 22, 2025, with the power sector experiencing a significant boost. This was largely attributed to the commencement of the Yarlung Tsangpo River Hydropower Station project, recognized as the largest hydropower project in history. The project, with an estimated investment of 1.2 trillion yuan, is expected to generate electricity equivalent to three Three Gorges Dams.
The Electric Grid Equipment ETF (159326), the only market-wide ETF tracking the China Electric Grid Equipment Index, saw a notable increase, with a trading volume surge and a 0.52% rise by 11:27. Key holdings such as Tongguang Cable (TGC) experienced a rally, with shares climbing alongside other sector leaders like Guodian Nanjing and Changhong Electric.
Analysts from Galaxy Securities highlighted the potential for increased investment in the power equipment industry, estimating a possible 5% rise in actual investment due to the project’s scale and complexity. The transmission and transformation segment, accounting for 15% to 25% of the total investment, could see an influx of 1.89 to 3.15 trillion yuan, benefiting the entire power equipment supply chain.
Regulatory Approval and Investment Progress
On July 21, 2025, TGC announced receiving a non-prohibition decision from the National Development and Reform Commission regarding its merger and acquisition review. This regulatory approval marks a significant step forward for TGC’s strategic investments and expansion plans. The company has made this information publicly available, ensuring stakeholders are informed of its progress.
Company Fundamentals
As of July 21, 2025, TGC’s stock closed at 11.09 CNY, with a 52-week high of 11.74 CNY and a low of 6.16 CNY. The company boasts a market capitalization of approximately 3.85 trillion CNY. Despite a high price-to-earnings ratio of 99.8174, TGC’s strategic positioning in the electrical equipment industry and recent market developments suggest potential growth opportunities.
These developments underscore TGC’s active role in the evolving electrical equipment sector and its strategic initiatives to capitalize on emerging market opportunities.