Investment Rating - The investment rating for the AIDC power equipment and grid industry is "Outperform the Market" (maintained) [1] Core Viewpoints - The global AI computing load is expected to grow significantly, with new AI computing loads projected at 9.7/15.9/20.2/22.3/23.4/24.6 GW from 2025 to 2030, leading to a corresponding increase in demand for AIDC power equipment [5][13] - The domestic data center industry is expected to see substantial capital expenditure growth, with major cloud providers anticipated to ramp up investments, particularly in AI infrastructure [18][24] - The industry is characterized by a long power transmission chain, with established global players like Eaton and Schneider Electric dominating, while domestic companies are gaining competitive advantages in various segments [5][13] AIDC Power Equipment Summary - The demand for AIDC power equipment is projected to reach 29/48/60/67/70/74 GW from 2025 to 2030, with an average annual growth rate of 20% [5][13] - The market space for dry-type transformers, medium and low voltage switchgear, UPS, HVDC, and solid-state transformers is expected to reach 85/341/41/380/239 billion yuan by 2030 [5][12] - Recent performance in the AIDC power equipment sector has shown significant gains, particularly in transformers and switchgear, with notable stock performances from companies like TBEA and XWDA [5][28] Grid Industry Summary - National power engineering investment reached 1,057 billion yuan in June 2025, a year-on-year increase of 22.5% [32] - The grid engineering investment for the same period was 871 billion yuan, reflecting a year-on-year growth of 4.1% [33] - The bidding results for the State Grid's transformer equipment showed a total bid amount of 211.89 billion yuan, a year-on-year increase of 38.1% [61] - The focus for the grid industry includes high voltage orders and the development of new business models such as virtual power plants and green electricity direct supply [5][55]

Group 1 - Morgan Stanley reports that the recently announced Yarlung Tsangpo River hydropower development plan in Tibet is directing funds towards engineering machinery stocks [1] - The complex terrain makes traditional machinery crucial in the early stages of the project, with Weichai Power (000338) identified as a leading enterprise in heavy-duty truck engines and construction machinery, placed on a positive catalyst watchlist with "overweight" rating and target prices of HKD 22 and RMB 24 for H-shares and A-shares respectively [1] - Sany Heavy Industry (600031) and XCMG (000425) are also recognized as leaders in large machinery, both receiving "overweight" ratings with target prices of RMB 25 and RMB 11.1 respectively [1] Group 2 - China Railway (601390) holds a 40% market share in tunnel machinery and is rated "overweight" with target prices of HKD 5 and RMB 8.2 for H-shares and A-shares respectively [1] - Traditional infrastructure stocks such as CRRC (601766) and Conch Cement (600585) have recently strengthened, indicating a market shift from risk control to support for new project launches, with CRRC receiving an "overweight" rating and target prices of HKD 6.8 and RMB 10.1 [1] - The Yarlung Tsangpo River hydropower development plan is expected to boost demand in upstream industries such as construction, machinery, cement, and steel, benefiting companies like XJ Electric (000400), Siyuan Electric (002028), and Huaming Equipment (002270) in the power equipment sector [2]

Core Viewpoint - The power grid equipment sector continues to show strong performance, with multiple stocks hitting the daily limit up, driven by optimistic investment forecasts and increasing demand [1] Group 1: Stock Performance - TBEA and Hualing Cable reached the daily limit up, while Guodian Nanzi and Electric Power Research Institute also saw significant gains [1] - Other companies such as Qiuguan Cable, Ankaozhidian, and Chenguang Cable increased by over 10%, while China West Electric, Tongguang Cable, and XJ Electric rose by more than 5% [1] Group 2: Market Outlook - Huashang Securities predicts that the State Grid's investment is expected to exceed 650 billion yuan by 2025 [1] - The combination of high overseas demand and domestic grid investment growth is likely to drive an increase in power equipment production, suggesting sustained high prosperity in the power grid equipment sector [1]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Clean Energy** sector in **China**, specifically highlighting the **Yarlung Zangbo hydropower project** which commenced construction on July 19, 2025, in Nyingchi, Tibet [1] Company and Project Details - The **Yarlung Zangbo River Lower Reaches Hydropower project** is operated by the newly-established **China Yajiang Group Corporation** and consists of five cascade power stations with a planned investment of approximately **Rmb1.2 trillion** [1] - For comparison, the **Three Gorges** and **Baihetan projects** had investments of **Rmb250 billion** and **Rmb220 billion**, respectively [1] Investment Implications - Key beneficiaries identified within the coverage include **UHV transmission equipment players** such as: - **Pinggao (600312.SS)** - **XJ Electric (000400.SZ)** - **NARI Tech (600406.SS)** - **Sieyuan (002028.SZ)** [2] - Opportunities are also seen for: - **Hydropower plant engineering companies** - Key hydropower equipment manufacturers like **Dongfang Electric (600875.CH/1072.HK)** and **Harbin Electric (1133.HK)** [2] - Potential for the development of **"hydro-solar-wind bases"** to leverage solar and wind power during the dry season for stable renewable energy output [2] Capacity and Output Estimates - The **Medog hydropower station** is designed with an installed capacity of approximately **60 GW**, significantly higher than the **Three Gorges' 22.5 GW** and **Baihetan's 16 GW** [5] - Estimated annual electricity output for the Medog station is around **300 billion kWh**, compared to **80-90 billion kWh** for the Three Gorges and **~60 billion kWh** for Baihetan [5] - The electricity generated will be transmitted to other regions in China via **UHV lines**, while also catering to local demand in Tibet [5] Valuation Methodology - **XJ Electric (000400.SZ)** uses a discounted cash flow model with a WACC of **8.0%**, reflecting a cost of equity of **9.5%** and an after-tax cost of debt of **4.5%** [8] - **Sieyuan Electric Co. Ltd. (002028.SZ)** employs a similar discounted cash flow analysis with a WACC of **7.5%** [9] - **Henan Pinggao Electric (600312.SS)** also uses discounted cash flow methodology with a WACC of **8.2%** [10] - **NARI Technology (600406.SS)** follows a discounted cash flow approach with a WACC of **8.0%** [16] Risks and Opportunities - **Upside Risks** include: - Better-than-expected progress in orders - Market share gains - Higher-than-expected investment in the grid distribution network [12][13][14] - **Downside Risks** include: - Delays in the working progress of orders - Lower-than-expected investment in the grid distribution network - Increased competition affecting margins [12][18][19] Analyst Ratings - The report includes various companies in the **China Utilities** sector with ratings such as **Overweight** and **Equal-weight** for companies like **CGN Power Co., Ltd.** and **China Gas Holdings** [78][80] Conclusion - The Clean Energy sector in China, particularly hydropower, presents significant investment opportunities driven by large-scale projects like the Yarlung Zangbo and Medog stations, with various companies positioned to benefit from this growth.

Market Overview - As of July 21, the Shanghai Composite Index closed at 3559.79 points, with a change of +0.72% [1] - The Shenzhen Component Index closed at 11007.49 points, with a change of +0.86% [1] - The ChiNext Index closed at 2296.88 points, with a change of +0.87% [1] Trading Volume Analysis - A total of 2843 stocks saw an increase in average transaction volume, with 159 stocks experiencing an increase of over 50% [1] - 1706 stocks reported a decrease in average transaction volume [1] - Notable stocks with significant increases in transaction volume include Zhuhai Design (+545.48%), Huaxin Cement (+346.40%), and Western Construction (+343.83%) [1] Active Stocks by Transaction Count - The top three stocks with the highest increase in transaction count were Han Commercial Group (+4471.98%), Renmin Tongtai (+1372.79%), and Xuch Electric (+800.94%) [2] - Other notable stocks with significant increases in transaction count include Yongfu Co. (+737.52%) and Liding Optoelectronics (+722.29%) [2] Stocks with Significant Increases in Both Transaction Volume and Count - Construction Machinery showed a daily increase of +9.88%, with transaction volume up by 236.12% and transaction count up by 86.06% [3] - Other stocks with both metrics exceeding 50% include Shoufang Cement, Tianshan Shares, and Guotong Shares, all showing substantial increases in both transaction volume and count [4]

Core Viewpoint - The article discusses the recent surge in A-share market driven by infrastructure projects, particularly the Yarlung Tsangpo River hydropower project, which has led to significant gains in related sectors such as construction materials and engineering machinery [1][9]. Group 1: Market Performance - The A-share market saw a collective rise in major indices, with the Shanghai Composite Index up by 0.72%, the Shenzhen Component Index up by 0.86%, and the ChiNext Index up by 0.87% [7]. - Over 4,000 stocks rose, with 130 stocks hitting the daily limit up, indicating strong market sentiment [7][9]. Group 2: Infrastructure Projects - The Yarlung Tsangpo River hydropower project is expected to have an annual investment that could reach 86.8% of Tibet's GDP, significantly impacting local economies and related industries [9]. - The project is anticipated to utilize advanced construction technologies, such as GIL technology, which will benefit companies in the supply chain [9]. Group 3: Sector Performance - The construction materials and engineering machinery sectors experienced a surge, with companies like China Power Construction and Tibet Tianlu seeing substantial stock price increases [9]. - The steel sector also showed strength, with companies like Xining Special Steel and Ba Yi Steel hitting the daily limit up, driven by government policies aimed at stabilizing growth in key industries [10]. Group 4: Policy and Economic Outlook - Analysts expect further monetary easing measures, including potential interest rate cuts and reserve requirement ratio reductions, to support economic growth [5]. - The upcoming political bureau meeting is anticipated to discuss additional stimulus measures, reflecting a proactive approach to economic management [4][5].

7月21日，沪指涨0.72%、创业板指涨0.87%，双双创年内新高。全市场超4000股上涨，逾百股涨停。盘面上，水利水电、工程机械、水泥建材、钢铁、电网设备、新型城镇化板块涨幅居前；跨 焦点股方面，上纬新材继续一字涨停收获20CM 9连板，大基建板块全线爆发，钢铁股柳钢股份15天9板，水泥股四方新材11天6板，稀土永磁概念股华宏科技走出7天6板晋级2连板。 | 代码 | 名称 | 价格 | 涨跌 | 张唱� | 换手% 几天几板[2 ... | 成交额 | 成交量 涨停分析 | | --- | --- | --- | --- | --- | --- | --- | --- | | 300564 | 筑博设计 | 17.38 | +2.90 | +20.03% | 4.14% 自板张停 | 81537 | 46910 建筑设计+雨7 | | 301151 | 武龙节能 | 21.30 | +3.55 | +20.00% | 10.03% 自板张停 | 1.19 7. | 55885 水利假 +抽7 | | 301038 | 深水规院 | 19.32 | +3.22 | +20.00% | 9.22% 首板涨停 ...

7月21日，上证指数早盘震荡上扬，午后持续走强；深证成指、创业板指早盘冲高回落，午后震荡上 扬；科创50指数早盘探底回升，随后震荡回落，午后再度回升。截至收盘，上证指数报3559.79点，涨 0.72%，成交额7309.06亿元；深证成指报11007.49点，涨0.86%，成交额9690.74亿元；创业板指报 2296.88点，涨0.87%，成交额4440.17亿元；科创50指数报1007.89点，涨0.04%，成交额269.07亿元。沪 深两市合计成交16999.8亿元，成交额较上一交易日增加1289.25亿元。 建筑材料、钢铁等行业走强上纬新材9连板 盘面上来看，行业板块、概念涨多跌少。其中，建筑材料、钢铁、化工、建筑装饰、有色金属、煤炭、 机械设备、农林牧渔、电力设备等行业涨幅靠前；水利建设、民爆、工程机械、抽水蓄能、低碳冶金、 房屋检测、同步磁阻电机、特高压、草甘膦等概念走势活跃。银行、教育、计算机等行业跌幅居前；跨 境支付、国资云、数字货币、财税数字化、信创等概念走势较弱。涨停个股主要集中在建筑材料、化 工、机械设备、建筑装饰、医药生物、电力设备等行业。 个股涨跌情况，截至收盘，沪深两市合计3797 ...

Core Viewpoint - The pumped storage concept sector has shown significant growth, with a 4.76% increase, ranking third among concept sectors on July 21, 2023, driven by strong performances from several stocks [1][2]. Sector Performance - The pumped storage concept sector had 59 stocks rising, with notable performers including: - Bikang Technology, which hit a 30% limit up - Deepwater Planning Institute and Guanzhong Energy, both reaching a 20% limit up - Zhejiang Fu Holdings, Guomai Heavy Equipment, and Beautiful Ecology also hitting limit up [1][2]. - The top gainers in the sector included: - Yongfu Co., up 11.68% - Donghong Co., up 7.00% - Tongyu Heavy Industry, up 6.81% [1]. Capital Flow - The pumped storage concept sector attracted a net inflow of 2.089 billion yuan, with 40 stocks receiving net inflows, and 8 stocks exceeding 100 million yuan in net inflows [2]. - The leading stock in terms of net inflow was Xujie Electric, with a net inflow of 485 million yuan, followed by China Electric Power Construction with 297 million yuan, and Zhejiang Fu Holdings with 145 million yuan [2][3]. Stock Performance - The top stocks in the pumped storage concept based on net inflow ratio included: - Subote with a net inflow ratio of 73.31% - China Electric Power Construction at 52.82% - Dongfang Electric at 44.43% [3][5]. - Other notable stocks included: - Xujie Electric, up 9.98% with a turnover rate of 12.90% - China Electric Power Construction, up 10.04% with a turnover rate of 0.77% - Zhejiang Fu Holdings, up 10.15% with a turnover rate of 2.54% [3][4].

Core Viewpoint - The market experienced a significant rally on July 21, with both the Shanghai Composite Index and the ChiNext Index reaching new highs for the year, driven primarily by infrastructure-related stocks and a surge in trading volume [1][2][3]. Market Performance - The Shanghai Composite Index rose by 0.72%, the Shenzhen Component Index increased by 0.86%, and the ChiNext Index gained 0.87% [1]. - Over 4,000 stocks in the market saw gains, with more than a hundred stocks hitting the daily limit up [2]. Sector Highlights - Infrastructure stocks, particularly in cement and building materials, saw a collective surge, with companies like Conch Cement hitting the daily limit up [3][8]. - High-voltage power transmission and grid concept stocks also performed strongly, with companies such as Guodian Nanzi reaching the daily limit up [4][8]. - The robotics sector maintained its strength, exemplified by Changsheng Bearing hitting the daily limit up [5]. Trading Volume and Key Stocks - The total trading volume for the Shanghai and Shenzhen markets reached 1.7 trillion yuan, an increase of 128.9 billion yuan from the previous trading day [5]. - Notable stocks by trading volume included Northern Rare Earth at 14.664 billion yuan, followed by Dongfang Fortune, Zhongji Xuchuang, and Ningde Times with trading volumes of 11.143 billion yuan, 10.910 billion yuan, and 9.047 billion yuan respectively [5]. Specific Events - The launch of the Yarlung Tsangpo River downstream hydropower project, with a total investment of approximately 1.2 trillion yuan, has sparked a rally in related stocks [9]. - An unusual trading incident occurred with Dongfang Electric, where a transaction at an inflated price led to a temporary spike of over 700% in its stock price before stabilizing [11][12]. Foreign Investment Sentiment - Foreign institutional investors are increasingly optimistic about Chinese core assets, with a focus on sectors such as domestic consumption and technology [14][15]. - Recent engagements with foreign sovereign funds and large asset management firms indicate a positive outlook on A-shares, with a shift in interest towards Hong Kong markets as a financial hub [14].