CITIC SEC: Positive on the synergy between AIDC and going global, while taking into account the high safety margin sectors such as the power grid under domestic demand policies.

CITIC SEC released a research report stating that looking ahead to March 2026, it is optimistic about the synergy between AIDC and overseas expansion, representing sectors such as space photovoltaics, AIDC, electric power equipment, and energy storage; and also recommends focusing on high-security margin sectors such as power grids during the window period of domestic demand policies. In the medium to long term, the bank advises to continue monitoring the long-term upgrade trend of overseas power grid systems driven by AIDC and new energy, and to focus on representative Chinese companies that have a strong presence in overseas markets, synergy in multiple product exports, and deep involvement in the upgrade of AIDC power supply systems. 1) Space photovoltaics: With the support of computing power, the trend of increasing the power of a single satellite is evident, and the solar panels are the most inflated part of the satellite value chain, with overseas production capacity layouts accelerating under demand. 2) AIDC & overseas expansion: The bank believes that domestic server power brands are expected to increase their market share, and it sees opportunities for overseas expansion and technological upgrades in distribution systems, energy storage, solid-state transformers (SST), etc.; in the long term, the bank judges that overseas power systems will undergo continuous upgrading in three stages, focusing on energy storage, base load power sources such as gas turbines, and power grid equipment. 3) Domestic demand for power grids: Expectations for domestic demand policies are rising, and the leading companies in the power grid sector are expected to see a valuation recovery. The main points by CITIC SEC are as follows: Space photovoltaics: With the support of computing power, the power of single satellites continues to increase, and the solar panels are the biggest "inflated" part. The bank expects the market space for photovoltaic cells in the satellite sector to reach trillions in the long term; it forecasts that from 2026 to 2035, the annual number of satellite launches will increase from 5000 to 100,000, driving the total demand for space photovoltaic cells from 0.1GW to 5-10GW; among them, gallium arsenide cells will still dominate in the short term, with a penetration rate of 70%, but as costs come down and technology advances, the penetration rates of P-type heterojunction cells (HJT) and perovskite/crystalline silicon tandem cells will gradually increase, especially the penetration rate of perovskite & crystalline silicon tandem cell solutions is expected to reach 70% in the long term. The bank predicts that the overall market space for photovoltaic cells in th...