GOLDEN SUN SECURITIES·2026-01-18 11:00Investment Rating - The report maintains a "Buy" rating for key companies in the construction and decoration sector, particularly focusing on those benefiting from the upcoming surge in power grid investments [4][10]. Core Insights - The National Grid's "14th Five-Year Plan" investment is expected to increase by 40% during the "15th Five-Year Plan," with total fixed asset investment projected to reach 4 trillion yuan, translating to an average annual investment of 800 billion yuan [9][14]. - The report anticipates a new cycle of investment in the power grid starting in 2026, driven by significant increases in renewable energy installations and the need for enhanced grid infrastructure [1][13]. - The demand for power grid services and equipment is expected to rise due to aging infrastructure in North America and Europe, creating opportunities for Chinese companies to expand their services abroad [1][13]. Summary by Sections Investment Opportunities - China Power Construction: A leader in energy services with comprehensive capabilities across the energy sector, expected to benefit from accelerated high-voltage construction projects [2][17]. - China Energy Engineering: Holds the largest market share in high-voltage design, anticipated to gain from increased demand for survey and design services during the "15th Five-Year Plan" [2][18]. - Suwen Electric: A unique provider of integrated EPCOS services for distribution networks, projected to benefit from a 10% increase in distribution network investment in 2024 [3][23]. - Ankore: A leader in microgrid energy management, expected to see significant demand growth due to the implementation of smart infrastructure and energy management systems [7][28]. - Zeyu Intelligent: A key player in power information system integration, likely to benefit from the digitalization of the power grid [8][30]. - Yongfu Co.: Recognized for its advanced smart grid technologies, expected to benefit from the focus on renewable energy and digitalization in the power sector [8][30]. Market Trends - The report highlights a clear upward trend in investment within the power grid sector, with a focus on high-voltage channels, distribution network upgrades, and digital/microgrid construction [9][33]. - The anticipated increase in investment is seen as a stabilizing force for the economy, with major infrastructure projects being a key area of focus for government spending [1][13]. Financial Projections - The report provides detailed financial projections for key companies, including earnings per share (EPS) and price-to-earnings (PE) ratios, indicating strong growth potential in the coming years [10][34].