Core Viewpoint - The A-share market is experiencing accelerated rotation of hotspots, with a significant surge in the electric grid sector following a slowdown in AI applications and commercial aerospace [1][2]. Group 1: Electric Grid Sector Performance - Electric grid equipment, ultra-high voltage, smart grid, and power sectors saw a comprehensive rise on Friday [3]. - Notable stocks such as Electric Science Institute, Hancable, and others reached their daily limit up [4]. - Key stock performance includes: - Electric Science Institute: 20% increase, market cap of 61.13 billion [5] - Xigao Institute: 19.17% increase, market cap of 79.11 billion [5] - Hongxiang Co.: 14.97% increase, market cap of 82.02 billion [5]. Group 2: Investment in Electric Grid - The State Grid Corporation announced a fixed asset investment of 4 trillion yuan during the 14th Five-Year Plan, a 40% increase from the previous plan [6]. - This investment will focus on green transformation, technological innovation, and the construction of new power systems [6][8]. - The investment scale during the 13th and 14th Five-Year Plans was approximately 2.64 trillion and 2.85 trillion yuan, respectively [7]. Group 3: Future Projections - The average annual investment in the electric grid during the 15th Five-Year Plan is expected to reach 1 trillion yuan, with the total investment from both the State Grid and Southern Grid projected to be 5 trillion yuan [9][10]. - By 2026, investments from the State Grid and Southern Grid are anticipated to reach 700 billion and 189 billion yuan, respectively, with year-on-year growth of 7.6% and 8.0% [11]. Group 4: Global Electric Power Demand - The global electricity demand is expected to grow by over 40% by 2035, with data centers projected to consume significant amounts of electricity [16]. - Renewable energy sources are expected to account for nearly 55% of power generation, with solar and wind energy making up over 50% of new electricity [17]. - Global electricity and grid investments are forecasted to reach new highs, with a CAGR of 8% and 5% from 2025 to 2035 [17]. Group 5: Competitive Landscape - Concerns about power supply in the U.S. have been raised, with warnings of potential doubling of power outages by 2030 [18][19]. - Tesla's CEO highlighted that China's power supply advantages could lead to a significant lead in AI computing capabilities [21]. - The overseas market for electric grid investments is expected to accelerate, with Chinese companies poised for growth in this sector [23].