Market Review - In the recent five trading days (December 12 to December 18), major indices showed mixed performance; the Shanghai Composite Index rose by 0.08%, while the ChiNext Index fell by 1.79% [5] - The trading volume decreased, with a total of 9.06 trillion yuan traded, resulting in an average daily trading volume of 1.81 trillion yuan, down by 491.08 billion yuan compared to the previous five trading days [9][22] Economic Data - The National Bureau of Statistics reported that from January to November, fixed asset investment decreased by 2.6% year-on-year, with a marginal decline of 0.9 percentage points [26] - Infrastructure investment (excluding electricity, heat, gas, and water production and supply) fell by 1.1% year-on-year, while manufacturing investment grew by 1.9%, reflecting a slowdown in investment sentiment [26] - Real estate investment dropped by 15.9% year-on-year, indicating ongoing challenges in the sector [26] Policy Focus - The central government's economic work meeting emphasized that expanding domestic demand will be the top priority for 2025, with a focus on service consumption in areas such as cultural tourism, elderly care, and childcare [32] - The government plans to optimize fiscal spending by increasing investment in people's livelihoods and enhancing monetary policy flexibility to support price recovery [32] Investment Strategy - The A-share market is expected to continue its oscillating trend, with a potential rebound as the market approaches the year-end and spring rally periods [33] - Key sectors to watch include: 1. TMT and robotics sectors due to ongoing AI capital expansion and domestic computing power substitution [34] 2. Power equipment and non-ferrous metals sectors driven by high global energy storage demand [34] 3. Social services and resource sectors as policy adjustments focus on structural changes and "anti-involution" measures [34] Industry Performance - Among the major sectors, non-bank financials, transportation, and retail sectors showed the highest gains, while the real estate, power equipment, and comprehensive sectors experienced the largest declines [22]

J P M O R G A N Asia Pacific Equity Research 10 December 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. Asia Power Equipment/Utilities Marketing feedback, investor positioning and key debates We have interacted with >60 investors across the globe over ...

（文章来源：每日经济新闻） 中泰证券称，往明年看，一是国内海外AI大beta依然持续，AIDC产业变化继续演绎从而带动股价表 现。二是以美国为代表的海外市场电力设备供需紧张，国内供应链有望持续拓展海外市场。三是国内电 网资本开支稳步增长。AIDC建设带来电力需求高增，中美区域贡献主要增量，从而带动全球电力需求 提升，国内电力设备出海持续演绎。 电网设备ETF（159326）是全市场唯一跟踪中证电网设备主题指数的ETF，指数成分股的行业分布以输 变电设备、电网自动化设备、线缆部件及其他、通信线缆及配套、配电设备为主，前十大重仓股中囊括 了国电南瑞、特变电工、思源电气、特锐德等多家行业龙头企业，具备较强的市场代表性。特高压权重 占比高达65%，全市场最高。 截至14:42，电网设备ETF（159326）涨幅3%，成交额达4.21亿元。持仓股中，中能电气、通光线缆、 中国西电、华菱线缆等多支股票涨停。从资金净流入方面来看，电网设备ETF连续11个交易日获得资金 净流入，合计"吸金"7.24亿元。电网设备ETF最新份额达18.48亿份，最新规模26.47亿元，均创成立以来 新高。 近期，国内电力设备行业招投标高景气延 ...

分组1 - The Federal Reserve is expected to announce a quarter-point interest rate cut, but the future path of rates remains uncertain, with traders closely watching the press conference for guidance [1][2][10] - The Fed's updated economic projections, known as the dot plot, will provide insights into officials' expectations for future interest rates [2][10] - Concerns about inflation persist, with current rates running approximately one percentage point above the Fed's 2% target, influenced by both goods and services inflation [11][12] 分组2 - Oracle is set to report earnings, with its stock down 33% from its all-time high in September due to heavy capital expenditures and concerns over its business model [4][26] - The company has become a significant player in AI after a $300 billion deal with OpenAI, but it raised $18 billion through debt offerings to fund its compute buildout [5][26] - For the upcoming quarter, Oracle is expected to report earnings per share (EPS) of $1.64 and revenue of $16.2 billion, with remaining performance obligations projected to increase by 433% [27][28] 分组3 - SpaceX is planning to raise over $30 billion through an IPO in 2026, which would value the company at $1.5 trillion, making it one of the largest public offerings [6][36] - GE Vernova's shares have risen due to AI-driven growth, with a long-term revenue outlook of $52 billion by 2028, and the company has announced increased buybacks and dividends [37] - Chewy reported third-quarter earnings that exceeded estimates, but its stock fluctuated due to a fourth-quarter outlook that fell short of expectations, despite adding active customers for the fourth consecutive quarter [39]

Core Viewpoint - GE Vernova's stock surged 5.9% in after-hours trading following the announcement of increased free cash flow outlook for 2025, a doubling of its dividend, and an increase in share buyback authorization [2][6]. Financial Guidance - For 2025, GE Vernova reaffirmed revenue guidance of $36 billion to $37 billion and adjusted EBITDA margin guidance of 8% to 9%, while raising its free cash flow outlook to $3.5 billion to $4 billion [5][6]. - The company provided 2026 guidance with revenue expected to be $41 billion to $42 billion and adjusted EBITDA margin of 11% to 13% [6]. - By 2028, revenue is projected to reach $52 billion with a low double-digit percentage organic growth, and adjusted EBITDA margin is expected to increase to 20% [6]. Dividend and Share Buyback - The board of directors declared a quarterly cash dividend of $0.50 per share, doubling the previous dividend of $0.25, payable on February 2, 2026 [8][10]. - The share repurchase authorization was increased to $10 billion from the previous $6 billion, with $3.3 billion already spent as of December 3, leaving $6.7 billion available for future buybacks [10]. Strategic Acquisition - GE Vernova plans to acquire the remaining 50% stake in Prolec GE for $5.3 billion, which is expected to enhance earnings and accelerate growth in its electrification segment, driven by the demand for grid upgrades to support AI data centers [7][6]. Market Position - GE Vernova operates in three segments: power, wind, and electrification, and was formed in April 2024 after General Electric's split into three separate companies [3]. - The company has a market capitalization of $170 billion, with a current stock price of $625.30 [8].

Group 1 - The article discusses the logic and marginal changes of AI computing hardware going overseas, highlighting that the market is currently performing well, particularly in AI computing-related sectors [1] - The power export market has shifted from SST to gas turbines and HRSG recently, indicating a change in focus within the industry [3][4] - The article emphasizes the strong performance of core targets in the gas turbine market, suggesting a positive outlook for these companies [4] Group 2 - The article notes that only three companies—Siemens Energy, GE, and Mitsubishi Heavy Industries—are currently capable of producing gas turbines, with a significant demand for these products due to electricity shortages in the U.S. [5] - Gas turbines are highlighted for their flexibility and efficiency, with the cost of electricity generation from large gas turbines being only $70-80 per megawatt hour, which remains competitive even with price increases [6][7] - The gas turbine market is entering a golden period of supply-demand balance, with strong demand driven by electrification, energy security needs, and explosive growth in data centers. Global gas turbine orders are expected to exceed production capacity until at least the early 2030s [7] Group 3 - HRSG prices are currently between $5-5.5 million per unit, with expectations to rise to $6-7 million per unit by early next year, driven by a 50% supply-demand gap [7] - The article provides insights into various companies in the domestic Google supply chain, detailing their products, market shares, and expected orders for 2026 [10][11]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the diverging power solutions for AI data centers (AIDC) in the US and China, highlighting the growing demand for energy due to the rise of AI technologies [1][11][16]. Core Insights - **AIDC Power Consumption**: The International Energy Agency (IEA) forecasts that global electricity consumption of data centers will more than double from 416 TWh in 2024 to 946 TWh in 2030, with a compound annual growth rate (CAGR) of 15% [3][24]. - **Market Share**: By 2030, the US and China are expected to account for approximately 45% and 30% of the global data center market, respectively [3][25]. - **Primary Power Solutions in the US**: Due to grid connection shortfalls, onsite power generation, particularly gas turbines, is becoming the primary solution for data centers in the US. Gas turbines are favored for their shorter lead times (1-2 years) compared to grid connections (5-7 years) [4][33]. - **Backup Power Solutions in China**: China has sufficient grid power for primary needs, but there is a tight supply for backup power, especially for 2MW diesel engines, which are critical for generator sets [5][34]. Key Suppliers and Market Dynamics - A list of 16 key suppliers for AIDC power solutions is provided, which collectively account for about 10% of total AIDC capital expenditures [2][11]. - **US Market**: Gas turbine producers are experiencing strong demand, with significant order backlogs and ongoing capacity expansions [4][37]. - **China Market**: Foreign brands dominate the diesel engine market in China, but local manufacturers like Weichai and Yuchai are expected to increase their market share significantly by 2025 due to shorter lead times and quicker capacity ramp-up [5][34]. Investment Recommendations - The report covers nine stocks providing power equipment to AIDCs, with eight rated as "Buy" due to the booming AIDC capital expenditures and strong demand outlook. GEV is rated "Hold" due to higher costs associated with its offshore wind backlog [6][12]. Additional Insights - **AI Training Power Needs**: AI-focused hyperscalers can have capacities of 100MW, consuming energy equivalent to that of 100,000 households, compared to traditional data centers with capacities of 10-25MW [16]. - **Future Projections**: AIDC is projected to account for 80% of newly added data center IT power from 2024 to 2028, indicating a significant shift in energy requirements driven by AI advancements [22][23]. Conclusion - The report highlights the critical need for efficient power solutions in the rapidly growing AIDC sector, with distinct strategies emerging in the US and China. The investment landscape is favorable for companies involved in power generation technologies, particularly gas turbines and diesel engines, as demand continues to rise in response to AI developments [1][11][16].

Summary of Nari Technology - A Conference Call Company Overview - **Company**: Nari Technology - A - **Industry**: Power Equipment and Utilities Key Highlights 1. **New Order Growth**: - New order growth maintained at **20%** for the first 11 months of 2025, consistent with the growth rate in the first nine months of 2025. Strength noted in orders from the ESS (Energy Storage Systems) and renewables sectors [2][4][5] 2. **Overseas Revenue Contribution**: - Overseas ESS revenue accounted for approximately **60%** of total ESS revenue, with a **140%** year-over-year growth in overseas revenue. This contributed to **10%** of total revenue in the first half of 2025 [4][6] 3. **Expense Control**: - Management emphasized stringent control over selling, general, and administrative (SG&A) expenses, forecasting that SG&A growth will be much lower than revenue growth this year and in the coming years. R&D spending is expected to remain stable at around **6-7%** of revenue [6][7] 4. **Grid Capital Expenditure Focus**: - Key focus areas for grid capital expenditure during the 15th Five-Year Plan (FYP) include investments in UHV (Ultra High Voltage), power dispatch systems, ESS, and micro-grids. The State Grid aims to enhance its capacity to dispatch an additional **200GW** of renewable power annually [6][7] 5. **ESS Revenue Guidance**: - Management guided for over **Rmb4 billion** in revenue from ESS products, with overseas revenue contributing around **60%** of this total. The company specializes in ESS integration, offering products such as battery management systems and energy management systems [4][5] 6. **Technological Edge**: - Nari Technology is noted for its understanding of grid connections and automation, providing a competitive advantage in the control and monitoring of ESS systems. However, margins in this sector are currently low, ranging from **15-20%** due to intense competition [5][6] 7. **Investment Thesis**: - The investment thesis is based on expected benefits from policy tailwinds, including stronger renewable installations and grid capex driven by China's 2035 renewable capacity target and plans to double energy storage capacity by 2027 [7][8] 8. **Valuation and Price Target**: - The price target for December 2026 is set at **Rmb28.50**, based on a projected **22x** P/E ratio for 2027, implying a **4.1x** FY26E P/B and a **2.5%** dividend yield [8] Risks - Potential downside risks include lower-than-expected grid capex, margins, and UHV investments, which could impact the company's performance and valuation [9] Conclusion - Nari Technology is positioned to capitalize on growth in the ESS and renewables sectors, with a strong focus on expense control and strategic investments in grid technology. The company maintains an Overweight rating with a positive outlook based on anticipated policy support and market trends [2][7][8]

Core Insights - The Air Insulated Switchgear (AIS) market is projected to grow from USD 71.02 billion in 2025 to USD 103.23 billion by 2033, with a CAGR of 4.79% from 2026 to 2033 [1][7]. Market Growth Drivers - The increasing integration of renewable energy sources, such as wind and solar, into existing power networks is a significant factor driving the demand for AIS [1]. - The need for reliable and adaptable switchgear systems to manage fluctuating loads and maintain grid stability is becoming essential as utilities and industrial users transition to clean energy [1]. Technological Advancements - Developments in digital monitoring, IoT-enabled AIS, and modular designs facilitate real-time load management and predictive maintenance, reducing operational downtime [2]. - Government programs promoting renewable energy usage further accelerate AIS deployment, particularly in regions investing in smart city initiatives and grid modernization [2]. Market Segmentation - By Voltage Level: The Medium Voltage (1–36 kV) segment holds a 52% market share, while Low Voltage (up to 1 kV) accounts for 28% [8]. - By Installation Type: Indoor installations dominate with a 55% share, while outdoor installations account for 45% [9]. - By Component: Circuit Breakers lead with a 30% share, essential for interrupting fault currents and ensuring system protection [10]. - By End-User Industry: Transmission & Distribution Utilities hold a 40% share, driven by investments in grid infrastructure and renewable energy integration [11]. Regional Insights - North America leads the AIS market with a 40% share in 2025, supported by advanced grid infrastructure and regulatory incentives [14]. - The Asia Pacific region accounts for 23% of the market and is the fastest-growing area due to rapid industrialization and government-backed grid modernization initiatives [15]. Key Market Players - Leading companies in the AIS market include ABB Ltd, Siemens AG, Schneider Electric SE, Eaton Corporation PLC, General Electric (GE), Mitsubishi Electric Corporation, and others [5].

Core Viewpoint - The company Yingweitong (002334.SZ) has developed prefabricated power modules designed as key infrastructure solutions for high-reliability scenarios such as data centers [1] Group 1: Product Features - The prefabricated power modules integrate prefabricated busbars, efficient transformers, modular UPS, integrated distribution architecture, and intelligent real-time monitoring systems [1] - The product enables rapid deployment, high energy efficiency, and intelligent operation and maintenance [1] Group 2: Performance Metrics - The modules can significantly shorten delivery times by over 40% [1] - They achieve system efficiency of up to 98% in super ECO mode [1] - The design saves more than 30% in space [1] Group 3: Applications and Benefits - The product is widely used across various sectors including telecommunications, internet, government, education, research, energy, taxation, and healthcare [1] - It provides safe, reliable, and recyclable power solutions, supporting the industry's digitalization and low-carbon transformation [1]