China Securities Co., Ltd.: Power shortage remains the main theme for the whole year, continue to be optimistic about the gas turbine industry chain.

China Securities Co., Ltd. released a research report stating that power shortage remains the main theme for the year, and they continue to be optimistic about the gas turbine industry chain. According to their calculations, the AI-driven power demand in North America will exceed 70GW by 2028, with the demand for gas turbines in other areas remaining stable at around 60GW. However, the global supply of gas turbines is expected to be around 90 GW by then, leaving a huge gap. It is inevitable that the gas turbine industry chain will be scheduled until after 2030 and prices will rise, and the overflow demand for applications such as aviation and maritime conversion to gas should also be taken seriously. Key points from China Securities Co., Ltd.: AIDC power generation equipment: The trend of rising prices in the industry chain is clear. Power shortage remains the main theme for the year, and they continue to be optimistic about the gas turbine industry chain. According to their calculations, the AI-driven power demand in North America will exceed 70GW by 2028, with the demand for gas turbines in other areas remaining stable at around 60GW, while the global supply of gas turbines is expected to be around 90GW by then. The gap is huge, and the scheduling and price increases in the gas turbine industry chain until after 2030 are inevitable. Overflow demand such as aviation and maritime conversion to gas should also be given attention. Lithium battery equipment: High prosperity in the lithium battery industry drives equipment demand, with new signed orders exceeding expectations in the first quarter. With the expansion of production by leading battery manufacturers and the high growth in energy storage demand, the lithium battery equipment industry has seen strong recovery in orders and performance. The top enterprises in the industry signed a significantly higher number of orders in the first quarter, with year-on-year and quarter-on-quarter growth continuing to be strong. It is expected that the logic of "order strong recovery - delivery capability improvement - profit margin recovery" on the equipment side will continue to be validated throughout the year. The sector's demand-driven logic is clear, with a resonance between high oil prices and high prosperity downstream, continuing to see value in the lithium battery equipment and solid-state battery sectors. Risk Warning: Risks related to domestic macroeconomic fluctuations, risks related to volatility in overseas markets, and risks related to downstream expansion not meeting expectations.