PowerChina's overseas order boom offsets shrinking domestic business and falling profit
Domestic orders keep shrinking New contracts fell 9.73% in the first half and 13% in the first seven months, with domestic orders down 22-24%. China is where most of PowerChina's business comes from, so a shrinking home market means less future revenue and weighs on the share price.
This is the core demand problem driving the stock down.
Profit is falling, not just orders First-half net profit dropped 29.56% to 3.821 billion yuan, following declines in 2024 and 2025. Falling profit means the company earns less on the work it does, which directly undermines the value investors are willing to pay for the shares.
Profit decline is the clearest negative force on the stock.
Overseas orders are the bright spot While domestic work shrinks, overseas contracts jumped 39% in the first half and 28.66% in the first seven months. New deals like the 8.925 billion yuan Iraq water project and 1.8 GW of wind projects in Egypt show foreign demand is growing and partly filling the gap.
Overseas growth is the main positive counterweight to weak domestic demand.
Big new contracts keep coming in PowerChina signed the roughly 8.925 billion yuan Basra water conveyance subcontract in Iraq and is advancing over 1.8 GW of wind plus storage work in Egypt. These add to the order book and support future revenue, though they are small next to the domestic decline.
New contract wins show the pipeline is still being replenished.