Guosen: The power demand of data centers is expected to continue to rise, and the investment in power grids remains prosperous.

Guosen released a research report stating that with the acceleration of the global digitalization process and the continuous prosperity of the data center market, the demand for data center power is expected to continue to increase, and power grid investment remains strong. Currently, wind power is entering a prosperous cycle, with the domestic land-based wind turbine prices stabilizing and recovering, export orders growing, and expected performance growth in the future. In terms of batteries, semi-solid-state batteries for vehicles have achieved mass production, solid-state batteries continue to optimize costs, and are being used first in low-altitude scenarios. Guosen's main points are as follows: - The demand for data center power is expected to continue to increase. - Recently, Microsoft announced an $80 billion investment in AI data centers by the fiscal year 2025, while ByteDance released a self-built data center substation design framework procurement announcement. Governments at home and abroad have introduced policies to encourage digital economy and new infrastructure construction, and AI infrastructure investment is expected to continue to grow. As the global digitalization process accelerates and the data center market continues to thrive, the demand for data center power, as a key link, is expected to surge. Key focuses include core companies in the data center industry chain such as Shenzhen Hopewind Electric, Hainan Jinpan Smart Technology, Guangdong Mingyang Electric, and Eaglerise Electric & Electronic. - Power grid investment remains strong. - Domestically, in the context of the development of a new power system, with the large-scale integration of new energy sources on the main grid and the market-oriented reform of the demand side, China's distribution network investment is ushering in a new cycle of prosperity. - Internationally, global energy transformation, grid upgrades, and electricity demand growth drive the growth of power grid investments. With the increase in global AI data center planning, power grid investment will continue to grow. Key focuses include top companies in the power grid secondary equipment sector such as NARI Technology, Dongfang Electronics, Beijing Sifang Automation, and Xj Electric Co., Ltd. - Wind power welcomes a prosperous cycle. - Domestically, it is expected that wind power installed capacity for both onshore and offshore will welcome a double prosperity in 2025. Since July, black raw material prices have shown a downward trend, with parts for large megawatt systems expected to be in short supply in 25 years, key parts profitability is expected to be restored. Meanwhile, domestic offshore wind power is poised for a strong start, and intensive construction is expected in 2025. Internationally, the European offshore wind bidding from 2025 to 2026 is expected to enter a window period, benefiting domestic offshore cable and pile top companies. Currently, domestic land-based wind turbine prices are stabilizing and recovering, with export orders growing, and expected performance growth in the future. Key focuses include leading companies in offshore wind power equipment such as Ningbo Orient Wires & Cables, Titan Wind Energy, Dajin Heavy Industry; wind turbine leaders including Goldwind Science & Technology, and Sany Renewable Energy. - The policy of trading in old cars for new ones continues, and rapid growth in sales of new energy vehicles in 2025 is expected. - Recently, the National Development and Reform Commission and the Ministry of Finance extended the subsidy policy for scrapped and updated cars to include National IV models, while launching a subsidy program for replacing and updating cars, actively promoting policies for rapid growth in domestic sales of new energy vehicles in 2025. Looking ahead to 2025, the market share of leading companies will remain stable and rise, while striving for more control in the international market. In the materials sector, raw material procurement costs are relatively stable, inventory devaluation pressures are basically released. Leading cathode companies have concentrated market share and optimized profits with high-voltage solid iron lithium and high-nickel ternary differentiated products; leading anode companies consolidate market share with cost leadership and industry energy consumption standards; electrolyte leaders bottom out profits, accelerate overseas layout; the diaphragm industry is still in the process of clearance, and the competition landscape is expected to improve in the future. In terms of new product innovation, mass production of composite flow batteries is accelerating, with applications nearing deployment; bulk production of semi-solid-state batteries for vehicles achieved, solid-state batteries continue to optimize costs and are being applied first in low-altitude scenarios. Contemporary Amperex Technology leads the second-generation sodium battery officially debuting in 2025, rapidly applied in scenarios such as scooters and energy storage. Key focuses include Contemporary Amperex Technology, Eve Energy Co., Ltd., Zhuhai CosMX Battery, Wolong Electric Group, and Hunan Yuneng New Energy Battery Material. Risk Warning: Risks of policy changes; significant fluctuations in raw material prices; production and sales of electric vehicles falling below expectations.