Core Viewpoint - The commencement of the Yarlung Tsangpo River downstream hydropower project, with a total investment of approximately 1.2 trillion yuan, has significantly boosted the A-share market, leading to a surge in related stocks and overall market optimism [1][5]. Market Reaction - On July 21, the A-share market experienced a bullish trend, with over 4,000 companies rising and more than 100 stocks hitting the daily limit up, primarily linked to the hydropower project [1][2]. - The Yarlung Tsangpo hydropower concept stocks saw substantial gains, with the index rising over 12% and several stocks, including Bicon Technology and Wuxin Tunnel Equipment, reaching the daily limit up of 30% [2][3]. Stock Performance - Key stocks related to the Yarlung Tsangpo project included: - Bicon Technology: +29.99% - Wuxin Tunnel Equipment: +29.99% - China Power Construction: +10.04% - Tibet Tianlu: +10.02% [3][4]. - In the Hong Kong market, stocks such as Dongfang Electric surged over 65%, and Huaxin Cement rose over 85%, all associated with the hydropower project [4][5]. Project Details - The Yarlung Tsangpo downstream hydropower project involves the construction of five cascade power stations, with a planned installed capacity of 70 to 81 million kilowatts, equivalent to three Three Gorges projects [9]. - The project is expected to have a construction period of 10 years and will require over 200,000 tons of steel [9]. Industry Impact - Analysts predict that the ongoing construction of the Yarlung Tsangpo project will benefit suppliers of hydropower equipment and core components for power grid projects [10]. - The estimated value of the turbine and generator business related to the project is projected to be between 53.5 billion and 95.4 billion yuan, potentially becoming a new growth point for the hydropower equipment sector post-2030 [10].

Core Viewpoint - The establishment of China Yajiang Group and the launch of the Yarlung Tsangpo River downstream hydropower project are significant developments that will positively impact the hydropower industry and related sectors in China [1][2]. Group 1: Company Developments - On July 19, the State-owned Assets Supervision and Administration Commission (SASAC) announced the formation of China Yajiang Group, which is now listed as the 22nd central enterprise among 99 in the updated SASAC directory [1]. - The Yarlung Tsangpo River downstream hydropower project, located in Nyingchi City, Tibet, involves the construction of five cascade power stations with a total investment of approximately 1.2 trillion yuan [2]. Group 2: Industry Impact - The ongoing construction of the Yarlung Tsangpo River downstream hydropower project is expected to benefit suppliers of hydropower equipment and core components for power grid transmission [2]. - According to Huatai Securities, the estimated total value of the turbine and generator business related to this investment is between 53.5 billion yuan and 95.4 billion yuan, which may become a new growth point for hydropower equipment after 2030 [2]. - The current valuations of leading companies in the industry reflect market concerns about the sustainability of orders, but there is potential for recovery as orders exceed expectations [2].

Core Viewpoint - The commencement of the Yarlung Tsangpo River downstream hydropower project on July 19 is expected to boost the hydropower equipment sector, with a conservative estimate of the total value of turbine and generator business ranging from 53.5 billion to 95.4 billion yuan, potentially becoming a new growth point for hydropower equipment after 2030 [1] Industry Summary - The Yarlung Tsangpo River downstream hydropower project is projected to significantly enhance the capacity utilization rate of the hydropower equipment industry [1] - Industry leaders' valuations currently reflect market concerns regarding the sustainability of orders, but there is potential for gradual recovery as orders exceed expectations in the future [1]