HK Stock Market Move | C TRANSMISSION (00658) increased by over 6% at the close of trading, with a significant narrowing of losses in the first half of the year compared to the same period last year. The overall outlook for the wind power industry is relatively good.

C TRANSMISSION rose more than 6% at the close, rising 4.69% as of the time of publication, to 1.34 Hong Kong dollars, with a turnover of 10.77 million Hong Kong dollars. On the news front, C TRANSMISSION released its interim results, with the company's attributable losses to owners of approximately 528.7 million yuan for the same period last year, and an estimated loss of approximately 136 million yuan for the first half of 2025. The announcement stated that the reduction in losses was mainly due to no impairment provision for trade operations during the period, while significant impairment provisions were made for trade receivables for the same period last year; and the revenue and profits from wind power and industrial gear transmission equipment business during the period increased compared to the same period last year. EB SECURITIES believes that the overall outlook for the wind power industry is good, and the profitability of whole machine companies is also improving. In the interim and third quarter reports of whole machine wind power companies, the turbine gross profit margin is a key indicator. If it continues to improve, it may become an important catalyst for the market. In addition, attention should also be paid to the actual scale of wind power in the bidding of various provinces in Document 136, as well as policies related to anti-oligopoly. These factors are expected to drive the valuation of the wind power sector to switch to 26-year estimates.