China XD Electric (601179 CH): Strong Growth in 3Q26 Earnings

China XD Electric has reported 3Q26 revenue of RMB6.582bn (+16.04% YoY), an attributable NP of RMB466mn (+36.88% YoY), and a recurring attributable NP of RMB447mn (+42.52% YoY), delivering strong profit growth. We expect domestic grid investment to increase substantially during the 15th Five-Year Plan (FYP) period. A robust pipeline of ultra-high-voltage (UHV) developments provides strong support for the company's medium-term orders. Meanwhile, its direct equipment export mix continues to improve, and a landmark overseas data center order for solid-state transformers (SSTs) marks a breakthrough in the overseas commercialization of its advanced technology. We expect profitability to continue improving and maintain BUY. For 9M26, revenue was RMB18.815bn (+10.65% YoY), the attributable NP was RMB1.154bn (+22.95% YoY), and the recurring attributable NP was RMB1.183bn (+28.15% YoY);