Huatai Securities: The shortage of main network equipment and traditional power equipment going overseas next year will bring differentiation investment opportunities.

Huatai Securities pointed out that, unlike the market, based on the development of overseas AI and the increasing electrification rate in China, we are more optimistic about the growth rate and duration of electricity demand. The electricity industry is expected to enter a super cycle, and we believe that both the sustainability and magnitude will exceed expectations. We believe that although the short-term energy structure may show cyclical attributes due to bottlenecks in the new energy system, ultimately the characteristics of the new energy manufacturing industry and its low dependence on resources will inevitably lead to cost parity in the future, and the industry will once again experience nonlinear growth. We believe that in the context of global tensions in electricity infrastructure, traditional electrical equipment is still not well understood by the market, and there are many undervalued areas. Next year, the shortage of main grid equipment and the overseas expansion of traditional power equipment will bring differentiated investment opportunities.