China Securities Co., Ltd.: Continually recommend the global power shortage industry chain.

China Securities Co., Ltd. released a research report stating that starting in 2026, the AI electricity demand in North America will exceed conventional load increments for the first time, becoming the most critical factor affecting the electricity demand in North America. It is estimated that the total delivery of gas turbines in North America from 2026 to 2028 will be 60-66 GW, which is far from the 152 GW AI electricity demand during the same period in North America. By the end of 2026, the global gas turbine orders still have the potential for an upward trend, expected to increase to over 100 GW. Considering the cyclical and drastic fluctuations in gas turbine demand in the past, the willingness for overseas expansion in components such as blades and castings is weak. However, the domestic supply chain is actively expanding production, accelerating the import of overseas products, and is poised for a double increase in quantity and benefits. At the same time, domestic independent gas turbine manufacturers, gas turbine integrators, diesel conversions, and ship conversions suppliers all have the potential for overseas exports. China Securities Co., Ltd.'s main points are as follows: 1. Industry background: 1) The AI electricity demand will intensify the power shortage in North America in 2026: Starting in 2026, AI will become the core driver of the growth in North American electricity demand. The AI electricity demand in North America for the years 2025, 2026, 2027, and 2028 are estimated to be 19, 32, 49, and 71 GW respectively. In 2026, AI electricity demand will exceed conventional load increments for the first time, becoming the most critical factor influencing North American electricity demand. 2) The gap between future gas turbine orders delivery and electricity demand is significant: The connection of gas turbines to the grid in North America is slow, and the current grid connection capacity is far below the demand. Data centers are entering the era of self-owned power stations, and gas turbines as baseload energy are crucial for self-owned power stations. Based on current orders, it is estimated that the total delivery of gas turbines in North America from 2026 to 2028 will be 60-66 GW, which is far from the 152 GW AI electricity demand in North America during the same period. 2. Gas turbine industry supply chain and supply chain layout projection: 1) Continuous upward trend in orders in 2026: Reviewing the historical cycle of gas turbine orders, the order volume in 2025 has not yet reached the previous high of the internet era cycle. With the expectation of certainty and sustainability in this round of AI demand, China Securities Co., Ltd. believes that the global gas turbine orders will still have an upward trend in 2026, expected to increase to more than 100 GW. By the end of 2026, the industry output will reach 2030. 2) Urgent need for expansion in the industry chain: Following the expansion plans of leading gas turbine companies since Q4 of 2025, this year's surge in orders is still driving Mitsubishi and Siemens to continue preparing for new capacity, with demand for upstream components still growing. 3) P... (Unfortunately, the text cut off here. Let me know if you would like me to continue translating the rest.)