Dongfang Electronics reported 3Q26 revenue of RMB2,362mn(+17.94%YoY),recurring attributable net profit(NP)of RMB164mn(-7.96%YoY),and attributable NP of RMB116mn(-39.86%YoY).Non-recurring items yielded asizable impact,reflecting fair value changes on the company's shareholding in CSG Digital Grid(301638 CH).As apioneer in China's power automation sector,the company sustained steady growth in its core business,while new businesses and overseas expansion could deliver faster growth.We expect its earnings to keep improving.Maintain BUY.

Revenue grew rapidly,GPM declined
For 9M26,revenue was RMB6,029mn(+16.74%YoY),attributable NP was RMB519mn(+4.79%YoY),and recurring NP was RMB482mn(+1.85%YoY).Non-recurring gains totaled RMB37mn in 9M26(RMB111/-26/-48mn in 1Q/2Q/3Q26),largely reflecting fair value changes on its CSG Digital Grid shareholding.For 9M26,GPM/NPM were 29.63/7.88%(-2.49/-0.83pp YoY),with the GPM decline mainly due to the gradual recognition of earlier low-priced orders in the domestic power distribution and utilization business.For 9M26,overall expense ratio fell by 1.96pp YoY to 21.15%,with sales/administrative/financial/R&D expense ratios at 8.53/4.93/-0.56/8.25%(-1.40/-0.17/+0.58/-0.96pp YoY).The rise in financial expenses stemmed from lower interest income and higher exchange losses,while overall expense control kept improving.

Overseas expansion accelerated
The company is accelerating its overseas expansion and focusing on key markets.Overseas project contracts span awide range of products and solutions,including distribution network automation,energy storage,microgrids,substation back-end systems,and electricity meters.Earnings diverged across subsidiaries.Wholly-owned subsidiary Dongfang Wisdom Electric faced price declines in power utilization products;driven by new products,new businesses,and new markets,its 1H26 revenue rose by 24.95%YoY to RMB1,590mn and net profit rose by 6.28%YoY to RMB165mn,with strong revenue growth but profit constrained by competition.Stake-controlling subsidiary HaiYi Software,facing competition pressure,longer delivery cycles,higher costs,and business transformation,posted 1H26 revenue of RMB171mn(-26.47%YoY)and anet loss of RMB51mn(-82.02%YoY),which weighed on group earnings.

Orders continued to grow rapidly
For 1H26,the company and its subsidiaries won contracts worth over RMB6.3bn(1H25:RMB5.4bn;+16.67%YoY).At State Grid,it won RMB838mn in the first batch of regional joint procurement and acumulative RMB270mn in headquarters centralized tenders,winning all tenders for protection and monitoring products and the new-generation integrated terminals.Its smart testing business for power distribution and utilization expanded rapidly,with new contracts for testing benches exceeding RMB50mn,and full-performance testing lines and smart laboratory projects in Guangxi,Ningxia,Hebei,and other provinces as well as the China Southern Power Grid(CSG)market reaching acumulative contract value of RMB80mn,lifting its market share.At CSG,it won about RMB199mn in distribution network framework agreement tenders,and emerging businesses such as AI projects,energy storage,renewables,and microgrids continued to gain traction.





Earnings forecasts and valuation
Given the drag on GPM from the recognition of low-priced power distribution and utilization orders,we lower our 2026/2027/2028 attributable NP forecasts by 6.9/6.9/6.8%to RMB960/1,112/1,301mn(previous:RMB1,032/1,195/1,396mn),implying EPS of RMB0.72/0.83/0.97.To reflect the company's technological moat,strong operating resilience,and adoption of emerging technology projects,we value the stock at 16x 2027E PE,above its peers'average of 15x 2027E PE on Wind consensus as of 23 October 2026.Our target price is RMB13.28(previous:RMB15.40,based on 20x 2026E PE).Maintain BUY.

Risks:weaker-than-expected grid investment,intensified competition,rising raw material prices.

　　东方电子发布三季报：26Q3实现营业收入23.62亿元（yoy+17.94%），扣非归母净利1.64亿元（yoy-7.96%），归母净利1.16亿元（yoy-39.86%）。非经常性损益影响较大，系公司所持南网数字（301638.SZ）股份产生的公允价值变动影响所致。公司为国内电力自动化先锋，基本盘业务保持稳健增长，新业务、出海有望带来更快增速，我们看好公司业绩持续提升，维持“买入”评级。
　　收入保持较快增长，毛利率有所下滑
　　公司26Q1-3实现营收60.29亿元（yoy+16.74%），归母净利5.19亿元（yoy+4.79%），扣非净利4.82亿元（yoy+1.85%），Q1-3非经常性损益合计0.37亿元（Q1、2、3分别为1.11、-0.26、-0.48亿元），受公司所持（南网数字）公允价值变动收益影响较大。公司26Q1-3分别实现毛、净利率29.63%、7.88%，同比-2.49、-0.83pct，毛利率下降主要系国内配用电业务前期低价订单逐步确认影响。公司26Q1-3期间费用率21.15%，同比-1.96pct，其中销售、管理、财务、研发费用率分别为8.53%、4.93%、-0.56%、8.25%，同比-1.40、-0.17、+0.58、-0.96pct，财务费用上涨系利息收入减少及汇兑损失增加所致，整体费用率管控持续优化。
　　海外市场加速布局，细分板块有所分化
　　公司海外加速布局，重点国别战略积极落地中，海外项目合同覆盖了配网自动化、储能、微电网、变电站后台系统、电表等多类产品及解决方案。子公司层面业绩分化，全资子公司威思顿用电领域产品面临价格下行，以新产品、新业务、新市场推动26H1实现营收15.90亿元（yoy+24.95%），净利润1.65亿元（yoy+6.28%），营收高增但利润受竞争压制。控股子公司海颐软件受市场竞争、交付周期拉长、成本抬升及业务转型影响，26H1实现营收1.71亿元（yoy-26.47%），净利润-0.51亿元（yoy-82.02%），形成一定拖累。
　　订单保持较快增长，新兴业务持续落地
　　26H1公司及子公司中标额超63亿元（25H1为54亿元，yoy+16.67%）。国网方面，第一批区域联合采购合计中标8.38亿元，总部集招累计中标2.7亿元，保护监控产品、新版融合终端实现招标全中。公司配用电智慧检测业务快速拓展，检测台体新签合同超5000万元，在广西、宁夏、河北等多省市及南网市场落地全性能检测流水线、智慧实验室项目累计合同金额8000万元，市场份额进一步提升。南网方面，配网协议库存中标约1.99亿元，人工智能项目、储能、新能源、微电网等新兴业务持续落地。
　　盈利预测与估值
　　考虑到配用电低价订单确认拖累毛利率，我们下调公司26-28年归母净利润预测（-6.9%、-6.9%、-6.8%）至9.60、11.12、13.01（前值10.32、11.95、13.96）亿元，对应EPS分别为0.72、0.83、0.97元。截至2026年10月23日，可比公司27年一致性预期平均PE为15倍，考虑到公司整体业务技术壁垒较高，经营韧性较强，同时新兴技术项目持续落地，我们给予公司2027年16倍PE，给予目标价13.28元（前值15.4元，对应26年20X），维持“买入”评级。
　　风险提示：电网投资力度不及预期风险，行业竞争加剧，原材料价格上涨风险。

Dongfang Electronics’ 2Q26 revenue/attributable net profit (NP)/recurring attributable NP were RMB2,148/167/193mn (+22.32/-7.97/+6.55% YoY). The company’s core business operated smoothly, while non-recurring items had a substantial impact, primarily due to fair-value changes on its stake in CSG Digital Power Grid Research Institute (301638 CH). As a domestic power automation pioneer, the company has maintained steady growth in core operations (distribution/utilization and transmission/transformation automation), with new businesses and overseas expansion poised to drive faster growth. We are optimistic about the company’s sustained earnings growth. Maintain BUY.
Order backlog supports growth; new businesses continue landing
In 1H26, winning bid amounts for the company and its subsidiaries exceeded RMB6.3bn (vs. RMB5.4bn in 1H25, +16.67% YoY). On the State Grid front, winning bids reached RMB838mn in the first joint regional procurement and RMB270mn in centralized HQ procurement, securing 100% of tenders for protection monitoring products and new fusion terminals. Smart-testing business for power distribution and utilization expanded rapidly, with new contracts for testing benches exceeding RMB50mn. Full-performance testing line and smart lab projects in Guangxi, Ningxia, Hebei, and China Southern Power Grid (CSG) markets reached a cumulative contract value of RMB80mn, further increasing market share. On the CSG front, winning bids for distribution network framework inventory reached c. RMB199mn, while emerging businesses including AI projects, energy storage, new energy, and microgrids continued taking shape. Additionally, leveraging national key projects, the company established multiple demonstration initiatives with related contracts exceeding RMB60mn, steadily converting frontier technologies into commercial orders.
Earnings forecasts and valuation
We maintain our 2026/2027/2028 attributable NP forecasts at RMB1,032/1,195/ 1,396mn. Considering the company’s high technical barriers, strong operational resilience, and continued landing of emerging technology projects, we value the stock at 20x 2026E PE, above its peers’ average of 17x on Wind consensus as of 19 August 2026, for our target price of RMB15.40 (previous: RMB16.94, based on 22x 2026E PE). Maintain BUY.
Risks: lower grid investment than we expect, intensified competition, and rising raw-material prices.

　　东方电子发布半年报：26Q2实现营业收入21.48亿元（yoy+22.32%），扣非归母净利1.93亿元（yoy+6.55%），归母净利1.67亿元（yoy-7.97%）。公司主业发展平稳，非经常性损益影响较大，系公司所持南网数字（301638.SZ）股份产生的公允价值变动影响所致。公司为国内电力自动化先锋，基本盘业务（配用电、输变电自动化）保持稳健增长，新业务、出海有望带来更快增速，我们看好公司业绩持续提升，维持“买入”评级。
　　主业经营稳健，费用管控成效显著
　　公司26H1实现营收36.67亿元（yoy+15.98%），归母净利4.03亿元（yoy+33.22%），扣非净利3.18亿元（yoy+7.76%），H1非经常性损益合计0.85亿元（Q1、2分别为1.11、-0.26亿元），其中公司所持（南网数字）公允价值变动收益影响0.92亿元。受该部分投资收益扰动，归母净利增速高于扣非净利，剔除该项影响后主业保持稳健增长。公司26H1分别实现毛、净利率30.68%、9.93%，yoy-2.40、+1.08pct，毛利率下降主要系国内配用电业务竞争加剧影响。公司26H1期间费用率21.97%，同比-1.79pct，其中销售、管理、财务、研发费用率分别为9.17%、4.84%、-0.62%、8.58%，同比-0.80、-0.46、+0.43、-0.96pct，财务费用上涨系汇兑损失增加所致，整体费用率管控持续优化。
　　国内业务构筑基本盘，子公司业绩分化
　　公司2026年上半年国内营收达34.29亿元（yoy+17.71%），毛利率30.19%；海外营收达2.38亿元（yoy+3.43%），毛利率38.25%。公司海外加速布局，拓展重点国别战略积极落地中，海外项目合同覆盖了配网自动化、储能、微电网、变电站后台系统、电表等多类产品及解决方案。子公司层面业绩分化，全资子公司威思顿用电领域产品面临价格下行，以新产品、新业务、新市场推动26H1实现营收15.90亿元（yoy+24.95%），净利润1.65亿元（yoy+6.28%），营收高增但利润受竞争压制。控股子公司海颐软件受市场竞争、交付周期拉长、成本抬升及业务转型影响，26H1实现营收1.71亿元（yoy-26.47%），净利润-0.51亿元（yoy-82.02%），形成一定拖累。
　　订单存在较强支撑，新业务持续落地
　　26H1公司及子公司中标额超63亿元（25H1为54亿元，yoy+16.67%）。国网方面，第一批区域联合采购合计中标8.38亿元，总部集招累计中标2.7亿元，保护监控产品、新版融合终端实现招标全中。公司配用电智慧检测业务快速拓展，检测台体新签合同超5000万元，在广西、宁夏、河北等多省市及南网市场落地全性能检测流水线、智慧实验室项目累计合同金额8000万元，市场份额进一步提升。南网方面，配网协议库存中标约1.99亿元，人工智能项目、储能、新能源、微电网等新兴业务持续落地。同时，公司依托国重项目打造多项示范工程，相关合同额超6000万元，前沿技术逐步实现订单转化。
　　盈利预测与估值
　　我们维持公司26-28年归母净利润预测为10.32、11.95、13.96亿元。截至2026年8月19日，可比公司26年一致性预期平均PE为17倍，考虑到公司整体业务技术壁垒较高，经营韧性较强，同时新兴技术项目持续落地，我们给予公司2026年20倍PE，给予目标价15.4元（前值22X，16.94元），维持“买入”评级。
　　风险提示：电网投资力度不及预期风险，行业竞争加剧，原材料价格上涨风险。

Dongfang Electronics reported its 1Q26 results beginning with revenue of RMB1.5bn(+8.05%YoY).Attributable NP came in at RMB236mn(+95.06%YoY),and ex-nonrecurring net profit was RMB125mn(+9.66%YoY).Core operations grew steadily,while non-recurring items had ameaningful impact on the bottom line,driven by higher fair-value gains on the company's holdings in CSG Digital Power Grid(301638 CH).Dongfang Electronics is adomestic pioneer in power automation.Its core businesses(D&U automation and T&S automation)are growing steadily,while new businesses and overseas expansion should drive faster growth.We expect continued earnings improvement and maintain BUY.
Steady core earnings growth with expense ratio edging lower
In 1Q26 the company posted revenue of RMB1.5bn(+8.05%YoY),attributable NP of RMB236mn(+95.06%YoY),and ex-nonrecurring net profit of RMB125mn(+9.66%YoY),reflecting steady growth in the core business.Gross and net margins reached 30.45%and 14.66%in 1Q26(-0.75pp and+7.47pp YoY).The overall expense ratio was 22.90%(-0.45pp YoY),with selling,G&A,financial,and R&D expense ratios at 9.89%,4.92%,-0.82%,and 8.92%(-0.44pp,-0.18pp,+0.69pp,and-0.52pp YoY).Expense controls continue to improve,with the overall expense ratio edging lower.
Steady grid business growth,notable diversification progress
In 2025,the company's market share in State Grid's bid award rose steadily.Its integrated primary-secondary distribution products won bids in 24 provinces,with cumulative orders of RMB1.2bn,a record high.In the China Southern Power Grid market,dispatch and cloud-based businesses achieved aseries of breakthroughs,with provincial-level coverage achieved in five provinces and several key technology projects won.Market share in the power utilization business remained solid,and new products such as high-end smart meters,measurement switches,and PV terminals expanded smoothly,supporting upgrades across the full product and solution chain.Outside the grid segment,the company won two major energy-storage projects in Yanshi(Luoyang)and Huating(Gansu)in 2025,with total contract value above RMB1.6bn.Energy-storage EMS,cloud-based O&M systems,and flexible DC interconnection projects are being deployed at afaster pace,and industry coverage continues to broaden.It also entered the pipeline network field in 2025,winning several key projects in northeastern China and Shandong,with delivered contract value above RMB30mn.
Earnings forecast and valuation
We maintain our 2026,2027,and 2028 attributable NP forecasts at RMB1.0bn,RMB1.2bn,and RMB1.4bn.As of April 28,2026,the average consensus 2026E PE of comparable companies was 20x.Given the company's high technology barriers across its overall business and its technological and first-mover advantages in virtual power plants,we apply 22x 2026E PE and maintain our target price of RMB16.94.Maintain BUY.
Risks:Weaker-than-expected grid investment,intensifying industry competition,rising raw material prices.