GUOTAI HAITONG SECURITIES·2026-03-17 02:38Investment Rating - The report assigns an "Accumulate" rating for the industry [1]. Core Insights - The report highlights the government's initiative to promote hydrogen energy applications, aiming for large-scale implementation in urban areas by 2030, with hydrogen prices expected to drop below 25 RMB/kg [4]. - Key companies such as Huadian Technology, China Steel International, and China Energy Engineering are positioned to benefit from the hydrogen energy market [3][6]. Summary by Sections Key Company Recommendations - China Energy Engineering is expected to leverage its strengths in new energy and hydrogen production, with projected EPS growth of 3.7% in 2025 and 7.2% in 2026, targeting a price of 3.86 RMB, corresponding to a PE of 17.5 for 2026 [14]. - Huadian Technology has seen significant growth in major contracts, with a projected EPS increase of 75% in 2025, and a target price of 15 RMB, reflecting a PE of 60 for 2026 [18]. Investment Highlights - The report notes that the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission have issued a notice to promote hydrogen energy applications, with financial incentives for cities participating in pilot projects [4]. - Huadian Technology is actively developing integrated projects in hydrogen production and storage, including a 45 MW wind power hydrogen production project in Liaoning [5]. - China Steel International has successfully implemented hydrogen-based smelting technology, marking a significant step towards achieving carbon neutrality in the steel industry [5]. Market Opportunities - The report emphasizes the potential for hydrogen energy and green fuels as new growth points, with various projects in the pipeline, including the world's largest integrated green hydrogen and ammonia project in Jilin [6]. - The overall market for hydrogen energy is expected to expand significantly, with the government supporting initiatives through funding and policy measures [4].