China's power equipment firms ride AI-driven boom amid demand from US, emerging markets

Core Insights - The development of artificial intelligence is driving significant investments in electricity infrastructure, creating opportunities for Chinese power equipment companies [1] - Geopolitical tensions have led the US to source products from Japan and South Korea, benefiting Chinese suppliers as emerging markets seek alternatives [2] - The upcycle for Chinese suppliers is expected to continue as long as the current US administration remains in power [3] Industry Overview - The US may experience a power shortfall of up to 20% from data centers alone until 2028, indicating a growing demand for power equipment [4][7] - In the first 10 months of the year, China exported US$7.3 billion worth of transformers and US$4.3 billion worth of high-voltage gas-insulated switchgears (GIS), reflecting increases of 37.8% and 28.5% respectively compared to the previous year [4] - Transformers and GIS are essential for efficient electricity transmission and integrating renewable energy sources [5] Company Performance - Sieyuan Electric reported a revenue increase of approximately 33% and a net profit surge of 47% for the first nine months of the year, with exports surpassing domestic sales [6] - Leading Chinese power equipment manufacturers are expected to expand in developed markets, supported by strong overseas demand [7]