Investment Rating - The report suggests a focus on investment opportunities in the North American electricity sector, particularly in gas turbines and complementary technologies like gas internal combustion engines, SOFC, and diesel generators [2][6]. Core Insights - The North American electricity shortage is driven by the non-linear growth of AI power demand and the aging of the power grid. The demand side sees a surge in AIDC projects, while the supply side faces challenges with declining stable supply and regional shortages [2][6][24]. - The report highlights that the total electricity supply in the short term can meet demand, but long-term projections indicate a significant peak gap of over 20GW annually from 2027 to 2030, particularly in Texas, the Mid-Atlantic, the Midwest, and California [2][30]. - Gas turbines are identified as the optimal solution for AIDC self-built power generation, with gas internal combustion engines, SOFC, and diesel generators serving as effective supplements [2][37]. Summary by Sections Section 1: North American Electricity Shortage - The current electricity shortage in North America stems from the contradiction between the non-linear growth of AI electricity demand and the aging infrastructure of the power grid. The electricity consumption in the U.S. is expected to reach historical highs in 2025-2026, driven by a significant increase in data center projects [6][15]. - The report notes that the share of electricity consumption from data centers will rise from 2% in 2018 to over 10% by 2028 [6][19]. Section 2: Power Source Selection - Gas turbines are recommended as the primary power source due to their efficiency and cost-effectiveness. The report outlines the advantages of various technologies, including gas internal combustion engines and SOFC, while emphasizing the need for a diversified approach to meet the growing electricity demand [2][37][39]. - The report provides a comparative analysis of different power generation technologies, highlighting gas turbines' high reliability and low emissions as key factors for their selection in AIDC projects [38][39]. Section 3: Investment Recommendations - The report suggests that investment opportunities in North America are expanding from gas turbines to include gas internal combustion engines and SOFC, as the current electricity shortage exceeds the total capacity of various technologies [2][6]. - Specific companies are recommended for investment based on their involvement in gas turbine production and related technologies, including Jerry Holdings, Yingliu Co., Dongfang Electric, and others [2][6].

Group 1 - The core viewpoint is that the growth in new energy installations is a common reason for the continuous increase in global power investment, with new energy showing greater demand elasticity for power equipment compared to traditional energy sources [1] - The overseas market is experiencing explosive growth in demand driven by multiple factors including new energy installations, replacement of old equipment, high growth in AIDC demand, and extreme weather, while the supply side faces bottlenecks in labor, approvals, and capacity [1] - By 2026, the outlook for Chinese companies going abroad is expected to continue exceeding expectations [1] Group 2 - During the 14th Five-Year Plan period, domestic investment in power grids is expected to reach new highs, with a focus on ultra-high voltage, smart meters, and distribution networks in 2026 [1] - The pace of ultra-high voltage advancement has been slightly below expectations, while flexible DC applications are reaching a turning point [1] - The price of smart meters has been continuously declining, and the implementation of new standards is expected to drive a price recovery [1] Group 3 - With the increase in AI server power, the AIDC power supply and distribution methods are evolving towards more efficient architectures, with the global AIDC power equipment market expected to exceed 410 billion yuan by 2030 [1] - A significant turning point in domestic and international demand is anticipated in 2026 [1] Group 4 - The Guotai ETF (159864) tracks the photovoltaic industry index (931151), which selects listed companies involved in silicon materials, silicon wafers, battery cells, modules, and photovoltaic equipment to reflect the overall performance of the photovoltaic industry chain [1] - This index focuses on the photovoltaic industry, characterized by high growth potential and technology-driven features [1]

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Eagle Precision (01286), which rose over 10% to reach a historical high of 7.66 HKD, with a current price of 7.54 HKD and a trading volume of 46.8363 million HKD [1] - Dongwu Securities reports that the investment in North America's electricity shortage is gradually shifting from gas turbines to gas internal combustion engines and SOFC, indicating that the current electricity shortage exceeds the total production capacity of various technologies, suggesting that all related investment opportunities should be considered [1] - Industrial demand for the company's products is stable and increasing, particularly in high-margin segments such as large horsepower engines and robotics, with AIDC boosting the demand for large horsepower engines [1] Group 2 - The company provides sand-cast cylinder blocks for large horsepower engines to major clients such as Caterpillar and Cummins, indicating a strong position in the market [1] - The sectors served by the company include large horsepower engines, construction machinery, agricultural machinery, recreational boats, passenger vehicles, commercial vehicles, aviation, energy, and medical, showcasing a diverse application of its products [1]

Group 1 - Eagle Precision (01286) saw its stock price rise over 10% during trading, reaching a historical high of 7.66 HKD, and is currently trading at 7.54 HKD with a transaction volume of 46.8363 million HKD [1] - Dongwu Securities reports that investment in North America's electricity shortage is gradually shifting from gas turbines to gas internal combustion engines and SOFCs, indicating that the sector has not yet reached a stage of selecting technological paths, thus all related investment opportunities should be emphasized [1] - Industrial demand for the company's products is stable and increasing, particularly in high-margin segments such as large horsepower engines and robotics, with AIDC boosting demand for large horsepower engines [1]

Investment Rating - The report maintains a "Recommended" rating for the machinery industry, indicating a positive outlook for investment opportunities in this sector [2]. Core Insights - The machinery industry is experiencing a strong start in 2026, with excavator sales in January reaching 18,708 units, a year-on-year increase of 49.5%. Domestic sales grew by 61.4%, while exports increased by 40.5% [8]. - The North American tech giants are expected to continue significant capital expenditures in 2026, which will likely sustain demand for AIDC infrastructure [8]. - The report emphasizes the potential for a new recovery cycle in the equipment industry, driven by monetary and fiscal policies aimed at boosting domestic demand [8]. Summary by Sections Key Company Earnings Forecasts, Valuation, and Investment Ratings - Companies such as 汇川技术 (Inovance Technology), 法兰泰克 (Falan Tech), and 信捷电气 (Xinjie Electric) are rated as "Strong Buy" with projected EPS growth and favorable PE ratios [3]. - For example, 汇川技术 is expected to have an EPS of 2.11 yuan in 2025, with a PE ratio of 35.41, indicating strong growth potential [3]. Industry and Company Investment Views - The report highlights the ongoing recovery in the excavator market, with significant growth in both domestic and export sales, driven by infrastructure projects and demand in mining and forestry sectors [8]. - The report suggests focusing on companies like 三一重工 (Sany Heavy Industry) and 徐工机械 (XCMG) due to their strong market positions and growth prospects [8]. Key Data Tracking - The report provides insights into macroeconomic indicators, including a 5.3% increase in the absolute performance of the machinery sector over the past month, indicating a positive trend [6]. - The machinery sector's total market capitalization is reported at 63,677.25 billion yuan, reflecting its significant role in the overall market [5].

Investment Rating - The report maintains a "Positive" investment rating for the industry [3] Core Insights - The space photovoltaic industry is progressing, with significant capital expenditures from major CSP manufacturers exceeding expectations [1] - The demand for energy storage is driven by ongoing electricity shortages in the U.S., highlighting the cost-effectiveness of leading companies [14] - The report emphasizes the importance of new directions such as space photovoltaics, AIDC, and robotics, which are catalyzing investment opportunities [14] Summary by Sections Photovoltaics - The space photovoltaic sector is gaining traction, with SpaceX's application for 1 million satellites accepted by the FCC, indicating a robust future for space-based data centers [20] - The China Photovoltaic Industry Association released cost analysis, indicating that the average full cost of mainstream photovoltaic products is expected to stabilize, providing support for price recovery [21] - The report highlights the potential for significant growth in global photovoltaic installations, with annual additions projected between 725-870 GW during the 14th Five-Year Plan [22] Energy Storage - Sunshine Power announced plans to establish a production base in Poland, aiming for 20 GW of inverter capacity and 12.5 GWh of energy storage systems [39] - The report notes a 45% year-on-year increase in EU battery storage capacity, with large-scale storage systems becoming the main growth driver [39] - January saw a significant increase in independent storage projects, with a total of 12.3 GW/36 GWh of bids, despite a year-on-year decline due to procurement timing [40] Lithium Batteries - The demand for lithium batteries continues to strengthen, with all segments showing a willingness to maintain prices, indicating ongoing profitability improvements [14] - The report recommends focusing on battery segments, particularly companies like CATL and EVE Energy, which are expected to perform well in the medium term [14] Wind Power - The report emphasizes the start of a new wind power cycle during the 14th Five-Year Plan, with significant opportunities in commercial aerospace and offshore wind projects [14] - Companies involved in wind turbine manufacturing and components are highlighted as key investment opportunities [14] Power Equipment - The domestic power grid's investment plan is projected at 5 trillion yuan, with significant improvements in pricing and demand driven by electricity shortages in the U.S. [14] - The report suggests focusing on opportunities in AI for power management and virtual power plants [14] New Directions - The report highlights the importance of developments in humanoid robotics and AIDC technology, with specific companies recommended for investment based on their potential in these sectors [14]

Investment Rating - The industry investment rating is "Recommended" (maintained) [1] Core Views - The domestic energy storage market continues to thrive, and the demand for space photovoltaic is further strengthened. The recent acquisition of xAI by SpaceX and the approval of a million-satellite application by the FCC are expected to drive rapid growth in space energy, particularly solar wing demand [4][5] - The report highlights the positive changes and potential catalysts across various sectors within the power equipment industry, maintaining an overall "Recommended" rating for the sector [6] Summary by Sections Recent Performance - The power equipment sector has shown a performance increase of 3.0% over the last month, with a 54.2% increase over the past year, outperforming the CSI 300 index, which has decreased by 3.1% in the last month and increased by 20.8% over the past year [3] Key Events and Insights - In the photovoltaic sector, the approval of SpaceX's satellite application is expected to significantly boost demand for solar energy solutions. The report suggests focusing on companies involved in photovoltaic battery equipment and components, such as Maiwei Co., Jiejia Weichuang, and others [4] - The wind power sector is expected to accelerate following the signing of the "Hamburg Declaration," which commits nine countries to develop 100GW of offshore wind power, potentially benefiting domestic manufacturers [5] - The energy storage market saw a total order volume of 36.3GWh in January 2026, with significant contributions from regions like Ningxia and Hebei. The average price for a 4-hour system has increased by 42% compared to the lowest point in July 2025 [6] - The lithium battery sector is witnessing accelerated industrialization of dry electrode equipment, with companies like Xianzhong Intelligent and others leading the way [6] Recommendations - The report recommends focusing on key players in the photovoltaic sector, such as Longi Green Energy and Aiko Solar, as well as companies in the wind power sector like Goldwind Technology and Mingyang Smart Energy [5][6] - In the energy storage space, companies like Sungrow Power Supply and EVE Energy are highlighted as potential investment opportunities [6]

Macro and Strategy - The macroeconomic review indicates that Shenzhen's GDP is expected to grow by 5.5% in 2025, achieving the anticipated growth target, with foreign trade increasing by 1.4% despite a decline in exports due to a high base in 2024 [7] - The strategy report highlights that A-share earnings are stabilizing, driven by cost reductions and the new economy outpacing the old economy, with a projected 10% growth in A-share earnings for 2026 under neutral assumptions [8][10] Industry and Company - The North Exchange's January 2026 report shows a significant increase in market activity, with a total of 292 listed companies and a total market value of 936.3 billion yuan, reflecting a 7.7% increase in total market value [11] - In the electric power equipment sector, domestic demand is expected to remain strong, with a focus on high-voltage direct current (HVDC) and smart meters, as the State Grid's fixed asset investment is projected to reach 4 trillion yuan, a 40% increase from the previous five-year plan [14][15][17] - Yum China reported a 22% year-on-year increase in net profit for Q4 2025, with total revenue reaching $2.823 billion, driven by a 34% increase in delivery sales [18][19][21]

Macro and Strategy - The macroeconomic review indicates that Shenzhen's GDP is expected to grow by 5.5% in 2025, with foreign trade increasing by 1.4% despite a decline in exports due to a high base in 2024 [7] - The A-share market is projected to see a 10% profit growth in 2026, driven by cost reductions and the rise of new economy sectors outpacing traditional sectors [8][10] Industry and Company - The North Exchange saw a significant increase in trading activity in January 2026, with a total of 292 listed companies and a market capitalization of 936.3 billion yuan, reflecting a 7.7% increase [11] - The electric power equipment industry is expected to benefit from strong domestic demand and overseas expansion opportunities, particularly in high-voltage direct current (HVDC) technology [14][15] - Yum China reported a 22% year-on-year increase in net profit for Q4 2025, with total revenue reaching $2.823 billion, driven by a 34% increase in delivery sales [19][21] Investment Recommendations - Focus on high-voltage direct current and smart meter sectors, recommending companies like Pinggao Electric and XJ Electric for their growth potential [17] - Anticipate continued overseas expansion for Chinese companies in the electric power sector, suggesting attention to companies like Sifang Co. and Mingyang Smart Energy [17]

Core Viewpoint - The report from Guosen Securities indicates that during the "14th Five-Year Plan" period, the domestic power equipment sector is benefiting from a resonance of investment both within and outside the network, with leading companies accelerating their overseas expansion [1] Group 1: Domestic Market Outlook - Since the beginning of the "14th Five-Year Plan," power generation investment has seen rapid growth driven by the increase in new energy installations, while grid investment has maintained steady growth but at a significantly lower rate than power generation investment [1] - The demand for main equipment such as transformers and switchgear remains strong, with a stable competitive landscape; however, the pace of ultra-high voltage (UHV) advancement is slightly below expectations, and flexible direct current applications are reaching a turning point [1] - The price of electric meters continues to decline, putting pressure on meter companies, but the implementation of new standards in 2025 is expected to drive a price recovery [1] Group 2: 2026 Domestic Investment Outlook - The State Grid Corporation is expected to invest 4 trillion yuan in fixed assets during the "15th Five-Year Plan," a 40% increase compared to the "14th Five-Year Plan," with potential for upward adjustments [2] - The report suggests focusing on UHV, smart meters, and distribution network directions in 2026, with opportunities for demand recovery and new product development in smart meters [2] Group 3: 2026 Export Outlook - The growth of new energy installations is a common reason for the continuous increase in global power investment, with significant demand elasticity for power equipment compared to traditional energy sources [3] - From 2016 to 2022, global grid investment averaged approximately 310 billion USD annually, projected to rise to 500 billion USD from 2023 to 2030, and nearly 800 billion USD by 2030 [3] - Since 2022, various factors have driven explosive growth in overseas demand, leading to a supply-side gap, with Chinese leading companies accelerating their overseas expansion [3] Group 4: AIDC Outlook for 2026 - The demand for upgraded power distribution architecture is increasing due to the continuous enhancement of AI server power, with the AIDC power distribution method expected to evolve along the UPS-HVDC-SST path [4] - The global AIDC power equipment market is projected to exceed 410 billion yuan by 2030, with a CAGR of 39% from 2024 to 2030 [4] - 2026 is anticipated to be a pivotal year for the application of 800V HVDC/SST in both domestic and international markets, creating new opportunities driven by technological changes [4]