Huatai Securities: Optimistic about the electric grid equipment sector, recommend focusing on the three investment themes of going overseas, AIDC, and domestic industry leaders.

Huatai Securities pointed out that on November 10th, State Grid opened the bid for the third batch of metering equipment for 2025. As the first comprehensive adoption of the new standard meters, the unit price of electricity meters and sensor equipment increased by 47% and 44% compared to the second batch of bids, achieving a rebound from the previous decline. With optimism towards the new standard meters, the industry is expected to achieve steady quantity and price increases in 2026, leading to the recovery of enterprise profitability. At the same time, driven by the demand for AI computing power, the global power shortage situation continues, overseas investments in power grids are accelerating, and Chinese power grid equipment may benefit from spillover demand, opening up export opportunities. Huatai Securities reiterated its positive view on the power grid equipment sector, and recommended focusing on the three investment themes of going global, AIDC, and domestic industry leaders.