资本货物：访问东方电器工厂的启示

Takeaways from Dongfang Electricplantvisit We joinedthereverseroadshowarrangedbyDongfang Electric (“DEC”)(1072 HK/600875 CH, NR)on 15 May, and visited the productionbaseofDongfang Turbine (subsidiary of DEC) inDeyang, Sichuan. The event attracted~200 analysts and investors. The discussion was mostly on the growth outlookofDEC’s gasturbine which is highly benefitingfrom the growth of AIDCpowerdemand. Management revealed the capacity expansion plan for gasturbinesand the latest order intakes in Canada.Based on the management tone, the China Capital Goods Sector Wayne FUNG, CFA(852) 3900 0826waynefung@cmbi.com.hk Jake Zhang(852) 3900 0849jakezhang@cmbi.com.hk Key takeaways: Gas turbine new order intakesfor AIDC customerin Canada.DEChassignedanagreement to deliver 10 units of gas turbines(G50, 50MWmodel)to anAIDC company in Canada(CMBI note: Synapse data centreproject). The agreementcoversthe entire construction service. DECis alsoin discussion with the customer to offer full lifecycle services. DEC’s Capacity expansion plan for gas turbine.The capacity expansion planwill be in two phases.For phase one, construction will be completed by2027, which will take theannualcapacityofsmall-to-medium size gasturbinesto 20 units and large-size model to 3 units. Capexfor phase oneis ~RMB735mn. For phase two, the commencement year will be in 2029. China tender volumesformajorpower equipmentsegments in 2026: In China,DECexpects the industry tender volume for coal-fired powerequipment to be 50GW in 2026 (1Q26: ~16GW) and will remain stable in2027 and 2028. Wind power is expected to reach 133GW (1Q26: 31GW)in 2026. Hydro power is expected to be 30GW (1Q266.6GW). Gas-fired Impact of recent raw materials and energy costincreases:For rawmaterials, the impactis from thecomponents ofenginesand furnaces, butthe overall costhikeis only 1%.For oil price, the impact is mainly on gasturbine which will result in ~3% increase in total cost. Management will Disclosures& Disclaimers Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related tothe specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. : Stock with potential return of over 15% overnext 12 months: Stock with potential return of +15% to-10% over next 12 months: Stock with potential loss of over 10% over next 12 months: Stock is not rated byCMBIGM Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is awholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on theperformance of underlying assets or other variable market factors.CMBIGMrecommends that investors should independently evaluateparticular investments or its affiliate(s) to whom it is distributed. This report is not and should not be construed as an offer or solicitation tobuy or sell any security or any interest insecurities or enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall beliable for any loss, damage or expense whatsoever, whether direct or consequential, incurred in relying on the information contained in this report.Anyonemaking use of the information contained in this report does so entirely at their own risk. The inform