Investment Rating - The report maintains an "Overweight" rating for the electric equipment and new energy industry [2] Core Insights - During the 14th Five-Year Plan, the State Grid Corporation of China is expected to invest 4 trillion yuan, a 40% increase compared to the previous plan, to drive high-quality development of the new power system supply chain [39][43] - The report highlights the focus on green transformation and the establishment of a new energy system, aiming for a 25% share of non-fossil energy consumption and 35% of electricity in final energy consumption by 2025 [39][43] - The electric equipment sector has shown strong performance, with the wind power equipment sector rising by 17.61% and the grid equipment sector by 11.91% in the last two weeks [16][17] Summary by Sections Market Review - As of January 15, 2026, the electric equipment industry has increased by 5.06%, outperforming the CSI 300 index by 2.43 percentage points, ranking 12th among 31 industries [11] - The wind power equipment sector has seen a significant increase of 17.61%, while the battery sector has only increased by 0.96% [16][17] Valuation and Industry Data - The electric equipment sector's PE (TTM) is 34.83 times, with sub-sectors like electric motors at 61.47 times and photovoltaic equipment at 31.57 times [23][24] - The report provides a detailed valuation comparison, indicating that the current valuation is above the one-year average for most sub-sectors [24] Industry News - The report discusses the expected investment by the State Grid Corporation and its implications for the electric equipment industry, emphasizing the importance of technological advancements and leading companies in the sector [39][43] - It also mentions the ongoing trends in the photovoltaic market, including price stability and the cautious outlook from upstream and downstream companies [39] Company Announcements - The report includes various company announcements, such as share reductions by major stakeholders and financial forecasts indicating potential losses for some companies [42]