Guotai Haitong: BE performance exceeds expectations, SOFC expected to accelerate development amidst AI boom.

Guotai Haitong released a research report stating that currently, solid oxide fuel cells (SOFC) are in the early stages of penetration and are expected to accelerate development under the AI construction boom in the United States. In the short term, the opportunity lies in the power supply-demand gap driving some customers to switch to SOFC. In the medium to long term (from 2028 onwards), the opportunity lies in the significant cost reduction after the scale of shipments expands, which will be lower than gas turbines and the grid. With the comprehensive advantages of technology and cost, it is expected to achieve a broader and sustained increase in customer penetration rates. Guotai Haitong's main points are as follows: 1. AI-driving SOFC leader BE's performance significantly exceeds expectations. 2. The company's 25Q3 revenue was $519 million, a year-on-year increase of +57%, significantly exceeding the bbg's expectation of $427 million, mainly driven by AI demand. Adjusted gross margin was 30.4%, a year-on-year increase of +5.2%, adjusted operating profit margin reached 8.9%, a sequential increase of +1.8%, and a year-on-year increase of +6.4%. Adjusted EPS was $0.15, significantly exceeding the bbg's expectation of $0.08. 3. BE's commercial strategy is flexible, participating in AI projects through various channels. 4. Data center power demand is strong, and SOFC is currently in the early stages of penetration. 5. Risk warnings: Market development falls short of expectations, competition in technology, AI demand lower than expected, data center project verification risks, policy risks.