CICC: The domestic and international demand for the power equipment industry is on the rise, and the sector has long-term investment value.

CICC's research report indicates that the electric power equipment industry is expected to perform steadily upwards in 2026, urging investors to focus on structural opportunities. In traditional power grids, the new energy system outlined for the "14th Five-Year Plan" clearly positions the grid to "adapt to a high proportion of new energy," coupled with the release of State Grid's investment plan for the "14th Five-Year Plan," making long-term grid investment promising. Additionally, the global AIDC infrastructure pace is accelerating, with strong demand for related electric power equipment. Chinese electric power equipment companies are likely to secure orders due to their advantages in short delivery cycles, cost-effectiveness, and reliable after-sales service. CICC continues to believe that the initial signs of a global electric power supercycle are emerging, and the development of new electric power systems is a long-term, ongoing process. The industry may enjoy sustained prosperity until 2030, while major listed companies' orders, revenue, and profits remain on a solid upward trajectory. Following adjustments, current valuations have entered a historically undervalued range, indicating that the sector possesses long-term investment value.