Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Insights - The report highlights that during the "14th Five-Year Plan" period, the State Grid's fixed asset investment is expected to reach 4 trillion yuan, representing a 40% increase compared to the "13th Five-Year Plan," marking a historical high in investment [4] - The Southern Grid plans to invest over 24 billion yuan in Q1 2026 for power grid infrastructure construction, which is an increase of over 20% year-on-year [4] - The investment plans of both the State Grid and Southern Grid align with the National Development and Reform Commission's guidance issued in December 2025, which emphasizes increasing investment in high-quality power grid development [4] Summary by Relevant Sections Industry Overview - The closing index is at 10,679.07, with a 52-week high of 10,950.05 and a 52-week low of 6,107.84 [1] Investment Highlights - The new power system is guided by safety and the absorption of green electricity. As the penetration rate of renewable energy continues to rise, the safety pressure on the power system is increasing, necessitating continuous updates to grid protection theories [5] - In regions rich in wind and solar resources, there is a spatial mismatch between power generation and consumption, requiring broader green electricity absorption, which is expected to accelerate the construction of ultra-high voltage systems, particularly utilizing flexible direct current technology [5] Investment Recommendations - For main grid investments, the report recommends focusing on companies such as Guodian NARI, Sifang Co., Pinggao Electric, and XJ Electric. For secondary equipment, it suggests Guodian NARI, Sifang Co., Guodian Nanzhong, and Jinzhit Technology [6]