Morning Briefing of Securities Firms | Global new orders for combustion engines expected to achieve double-digit year-on-year growth

Yesterday, the market bottomed out and rebounded, with the three major indexes showing mixed movements. The ChiNext Index fell by more than 1% at one point, with the Huangbai line diverging. The turnover of Shanghai and Shenzhen stock markets reached 2.54 trillion RMB. In terms of sectors, the computing power hardware sector saw the highest gains, with PCB, CPO, liquid-cooled servers, and computing power chip concepts all performing strongly. The power sector strengthened, and the gas turbine concept collectively rose sharply. On the downside, the film and television industry, insurance, real estate, and other sectors had the largest declines. At the close, the Shanghai Composite Index fell by 0.01%, the Shenzhen Component Index rose by 0.19%, and the ChiNext Index fell by 0.29%. At today's morning meeting of securities firms, Huatai believes that global gas turbine new orders are expected to achieve double-digit year-on-year growth; China Securities Co., Ltd. is optimistic about the cyclical sector market; EB SECURITIES believes that the dual control of carbon emissions will drive a reevaluation of carbon costs, and is bullish on non-power applications of green electricity. Huatai: Global gas turbine new orders are expected to achieve double-digit year-on-year growth Siemens Energy predicts that new orders for the 2026 fiscal year are expected to increase by 38% to 36GW, considering the company's conservative guidance style, this implies that by the end of September 2026, the company is expected to achieve at least a high-level year-on-year growth in new orders (the company's fiscal year is one quarter ahead of the calendar year). Based on the agreement bookings for GEV until the end of 2025 of 43GW, if all are converted into orders in 2026, it means a 44% year-on-year increase in new orders in 2026. The more mature solutions such as light fuel and internal combustion engines are expected to further drive the volume of orders, and the above guidance is expected to support the continued double-digit unexpected growth of global gas turbine new orders in 2026. China Securities Co., Ltd.: Optimistic about the cyclical sector market Focusing on the reversal opportunities in the capital-intensive industry: first, with inflation expectations rising, PPI continues to recover, bulk commodity prices are rising, benefiting the balance sheets of capital-intensive enterprises; second, industries such as chemicals and building materials have undergone capacity reduction, overlaying policies to control incremental growth and stabilize prices, strengthening the industry's profit recovery momentum; third, first-tier city real estate is gradually stabilizing, which is expected to drive domestic demand and industry chain demand recovery. Considering convertible bond valuations and industry logic, it is recommended to focus on the chemical, building materials, and power equipment sectors. EB SECURITIES: The dual control of carbon emissions will drive a reevaluation of carbon costs, and is bullish on non-power applications of green electricity From the transition from energy consumption control to carbon emissions control evaluation mechanisms in China, and the substantial imposition of EU carbon tariffs, assets with low carbon or negative carbon attributes (such as green aluminum, green hydrogen alcohol, zero-carbon zones, etc.) will receive green premiums. Taking into account factors such as downstream premium payment capabilities and economic substitutability, non-power applications in fields such as shipping fuel green alcohol, hydrogen storage carbon fixation green ammonia, and non-electric applications in the hydrogen metallurgy sector are expected to benefit. This article is reproduced from "CaiLian News", GMTEight Editor: Liu Jiayin.