Huachuang Securities: In February, China's overseas demand for transformers surged, suggest focusing on related stocks such as switchgear.

Huachuang Securities released a research report stating that under the global process of re-electrification, factors such as new energy transformation, old grid renovation, and AI applications have created a surge in overseas demand for transformers, as well as related parts. This presents a growth opportunity for transformer and related parts export companies. It is recommended to pay attention to stocks related to transformers, transformer tap changers, and transformer electromagnetic wire. Key points from Huachuang Securities: Export Overview The General Administration of Customs released China's transformer export data for February 2025 on March 20, 2025: In yuan terms, China's transformer (including parts) exports reached 40.4 billion yuan in February, a year-on-year increase of 43% but a month-on-month decrease of 27%. The total cumulative exports for the year amounted to 96 billion yuan, a year-on-year increase of 44%. The export of transformers (excluding parts) in February was 35.4 billion yuan, a year-on-year increase of 48% but a month-on-month decrease of 26%, with total cumulative exports for the year amounting to 83.2 billion yuan, a year-on-year increase of 48%. In US dollars, China's transformer (including parts) exports in February 2025 were $560 million, a year-on-year increase of 41% but a month-on-month decrease of 27%. The total cumulative exports for the year amounted to $1.33 billion, a year-on-year increase of 42%. The export of transformers (excluding parts) in February was $490 million, a year-on-year increase of 47% but a month-on-month decrease of 26%, with total cumulative exports for the year amounting to $1.16 billion, a year-on-year increase of 46%. Product-specific Exports Liquid transformers: China's exports of liquid transformers reached about $350 million in February 2025, a year-on-year increase of 71% but a month-on-month decrease of 24%. The total cumulative exports for the year amounted to about $820 million, a year-on-year increase of 72%. Other transformers: China's exports of other transformers in February 2025 were around $140 million, a year-on-year increase of 8% but a month-on-month decrease of 30%. The total cumulative exports for the year amounted to about $340 million, a year-on-year increase of 8%. Transformer parts: China's exports of transformer parts in February 2025 were around $70 million, a year-on-year increase of 14% but a month-on-month decrease of 33%. The total cumulative exports for the year amounted to about $180 million, a year-on-year increase of 21%. Regional Exports (including parts) Asia: China's exports of transformers to Asia in February 2025 were $300 million, a year-on-year increase of 79% but a month-on-month decrease of 16%. The total cumulative exports for the year amounted to $660 million, a year-on-year increase of 50%. North America: China's exports of transformers to North America in February 2025 were $100 million, a year-on-year increase of 46% but a month-on-month decrease of 21%. The total cumulative exports for the year amounted to $220 million, a year-on-year increase of 62%. Europe: China's exports of transformers to Europe in February 2025 were $120 million, a year-on-year increase of 15% but a month-on-month decrease of 24%. The total cumulative exports for the year amounted to $280 million, a year-on-year increase of 33%. Africa: China's exports of transformers to Africa in February 2025 were $20 million, a year-on-year decrease of 24% and a month-on-month decrease of 76%. The total cumulative exports for the year amounted to $90 million, a year-on-year increase of 31%. South America: China's exports of transformers to South America in February 2025 were $20 million, a year-on-year decrease of 8% and a month-on-month decrease of 50%. The total cumulative exports for the year amounted to $60 million, a year-on-year increase of 12%. Oceania: China's exports of transformers to Oceania in February 2025 were $7 million, a year-on-year decrease of 47% and a month-on-month decrease of 55%. The total cumulative exports for the year amounted to $20 million, a year-on-year decrease of 15%. Key countries or regions: Looking at the single month of February 2025, the top three destinations with the largest year-on-year increases in China's exports were Saudi Arabia, Thailand, and the United States, with increases of $113 million, $12 million, and $11 million, respectively. Looking at the cumulative amount from January to February 2025, the top three destinations with the largest year-on-year increases in China's exports were Saudi Arabia, the United States, and Thailand, with increases of $140 million, $34 million, and $29 million, respectively. Risk Warning: International geopolitical risks; overseas trade barrier policy risks; exchange rate fluctuation risks.