Power Grid Stocks Surge as China's Q1 Investment Shows "Dual High-Growth" Trend

According to recent SMM on-site surveys, sulphur and sulphuric acid supply in Zambia and the DRC has not experienced significant shortages, and has not yet had a substantive impact on copper and cobalt smelting production in the two regions. Zambia's domestic sulphuric acid supply is self-sufficient, with supply pressure concentrated in the DRC. Currently, raw materials in the DRC can be procured normally, but prices fluctuate at high levels, with the delivery-to-factory price of sulphuric acid ranging from $1,000 to $1,400/mt, reaching a peak of $1,400/mt. Sulphur DAP quotes range from $1,500 to $1,800/mt, and DDP quotes range from $2,300 to $2,500/mt. Dar es Salaam port holds sulphur inventory, mostly held by traders holding back from selling while waiting for higher prices.

Xinya Cable (001382) disclosed its annual report on April 20. In 2025, the company achieved operating revenue of 2.947 billion yuan, up 4.00% YoY; net profit attributable to the parent company was 100 million yuan, down 25.57% YoY; basic earnings per share were 0.26 yuan. The company proposed a cash dividend of 0.75 yuan per 10 shares (tax inclusive). The decline in net profit attributable to the parent company was mainly due to the following reasons: first, intensified competition in the wire and cable market and the sustained rise in raw material prices of copper and aluminum put the company's comprehensive gross margin under pressure; second, the expansion of the company's accounts receivable led to an increase in credit impairment loss provisions.

Hengtong Co., Ltd. (600226) disclosed its annual report on April 20. In 2025, the company achieved revenue of 1.85 billion yuan, up 38.6% YoY; net profit attributable to the parent company was 201 million yuan, up 6.05% YoY; basic earnings per share were 0.07 yuan. During the reporting period, copper foil product sales grew significantly, and the gross margin of copper foil products increased. The company's copper foil business maintained steady growth, achieving sales of 15,883 mt, up 76.34% YoY. As of the end of the reporting period, the company's copper cathode foil annual capacity reached 25,000 mt.