Changjiang Securities·2026-03-17 23:30Investment Rating - The industry investment rating is "Positive" and maintained [6]. Core Insights - Recent fluctuations in natural gas prices due to overseas geopolitical tensions have not diminished the advantages of gas turbines, which remain the preferred primary power source for data centers due to their high land utilization and stable power generation [2][10]. - Despite a significant increase in LNG prices, the total cost per kilowatt-hour for gas turbines remains competitive, making them a favorable option for power supply in North American data centers [10]. - The demand for gas engines in the AIDC (Artificial Intelligence Data Center) sector is expected to accelerate, with key recommendations for investment in companies such as Weichai Power and Yinlun [2][10]. Summary by Sections Recent Events - On February 28, 2026, a military strike by the US and Israel on Iran led to the announcement of the closure of the Strait of Hormuz, potentially impacting about 20% of global LNG trade and causing a short-term spike in natural gas prices [4]. - As of March 12, 2026, the Asian JKM spot LNG price increased by 46.5%, while the European TTF natural gas price saw a weekly rise of 64.3% [4]. Market Dynamics - The North American data center's self-built power supply primarily relies on natural gas turbines, which have a clear cost advantage over alternatives like solar and storage [10]. - The report highlights that even if natural gas prices reach recent highs, gas turbines will still maintain a cost advantage in power generation [10]. Investment Recommendations - The ongoing electricity shortage in North America presents a significant supply gap for gas turbines, with a clear future demand for AIDC gas engines [10]. - The commercial vehicle sector is also showing positive trends, with expectations for performance and valuation increases in heavy-duty engine and component segments [10].