GF SECURITIES·2026-01-20 23:30Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The report emphasizes new opportunities in the AI equipment industry, particularly focusing on reciprocating internal combustion engines and modified aviation engines as potential growth areas [5] - The report highlights the urgent need for new power supply methods in the U.S. due to a projected electricity gap of 63 GW by 2028, driven by slow growth in existing power installations and the retirement of aging units [5] - The demand for gas turbines is increasing, with extended lead times for orders, indicating a shift towards alternative power generation methods [5] Summary by Sections Reciprocating Internal Combustion Engines - These engines are noted for their low-load, high-efficiency capabilities and a relatively relaxed supply chain, supporting various fuels such as natural gas, hydrogen, and biomass [5] - The power output range for these engines is between 200 kW and 10 MW, with major global suppliers including Caterpillar, Cummins, and Wärtsilä [5] Modified Aviation Engines - The report discusses the potential for retired aviation engines to be repurposed, with a significant increase in orders for modifications expected [5] - FTAI Aviation plans to convert the CFM56 engine into a 25 MW power turbine, aiming for an annual production of over 100 units starting in 2026 [5] Investment Recommendations - The report recommends investing in Jerry Holdings due to the potential for increased engine resources from reciprocating internal combustion engines and modified aviation engines [5] - It also suggests monitoring potential suppliers such as Weichai Heavy Machinery and China Power [5]