HK Stock Market Move | Dongfang Electric Corporation (01072) rises more than 3%; power shortage remains the main theme of the year. The company's high proportion of potential overseas sales in gas turbine business.

Dongfang Electric Corporation (01072) rose more than 3%, as of the time of writing, it rose by 3.42% to HK$43, with a trading volume of HK$7.46 billion. On the news front, according to data from Global Energy Monitor (GEM) and several market research institutions, there will be an additional 60.4 GW of gas turbines installed globally by 2025, with a market size between USD 24 billion and USD 25 billion. China Securities Co., Ltd. believes that the power shortage will continue to be the main theme throughout the year, and remains optimistic about the gas turbine industry chain. The bank estimates that the AI in North America will drive electricity demand by over 70 GW by 2028, considering stable gas turbine demand in other areas at around 60 GW, while global gas turbine supply is expected to be around 90 GW by then, creating a huge gap, and it is inevitable that the gas turbine industry chain will schedule production beyond 2030 with rising prices, and external demand such as aircraft and ship conversions should also be taken seriously. Zheshang believes that gas turbines are the preferred main power solution for the American AIDC, and the global market is monopolized by GEV, Mitsubishi Heavy Industries, and Siemens Energy. The industry's order backlog is expected to last until 2029-2030, and there is a significant production capacity gap. Domestic heavy gas turbine technology is accelerating breakthroughs, with companies like Dongfang Electric Corporation achieving independent localization of core components, leading to a dual opportunity for the industry chain to expand overseas with complete machines and component matching. Citigroup points out that Dongfang Electric Corporation has a high potential in overseas gas turbine sales, combined with strong demand for domestic nuclear and hydroelectric power equipment, as well as relatively lower profit from coal-fired power equipment sales compared to its peers, making it one of the top picks in the power equipment sector.