AI基础设施 - 中国 (H)：驱动AI：威柴、东方电气、LS电气、核电

Powering Al: Weichai, Dongfang Elec, LSElec, Nuclear Industry Overview We concluded our one week Al infrastructure conference. This note summarizes the keyfindings in Powering Al from Weichai, Dongfang Electric, LS Electric, CGN, Wasion andNuclear & Power experts. 26 June2026 EquityChinaAl Infrastructure Power:robustAiDC growth& unique advantagefor China Matty Zhao >>Research AnalystMerill Lynch (Hong Kong)+8523508 4001mattyzhao@bofa.com Owing to low costs, high adequacy, well-developed grid, and a robust equipment chain,power will be a unique advantage for China Al development.The power expert Mr. Jiangexpects China data center power consumption to exceed 1,000TWh by 2030 vs. 235TWhin 2025. Nuclear (SMR) and ESS play critical roles. Both CGN Power and expert expectChina powertariffto rebound after 2026.Dongfang and Nuclear expert forecast8-10units/year approval for China during 15th FYP period and are positive on nuclear export. Peter Wang>>Research AnalystMerrill Lynch (Hong Kong)+852 3508 7185peter.wang2@bofa.com Global transformer shortages and strong grid investment Yibing Xia >>ResearchAnalvstMerrill Lynch (Hong Kong)+852 3508 8045yibingxia@bofa.com Speakers all expect ongoing global transformer shortages in FY26-28F due to US/ EU/SEA grid upgrade and AIDC power needs. Overseas expansion (particularly the U.S.) anddata centerremainkey earning driversgiventhe significantlyhighermargin.Wasionguides for RMB4bn and RMB7-8bn of data center-related orders in 2026E and 2027ELS Electric see robust orders from both the U.S. market and AIDC customers and isexpanding capacity to meet growing demand. Ming Hsun Lee, CFA >>Research AnalystMerrill Lynch (Hong Kong)+85235085006minghsun.lee@bofa.com Fiona Liang >Research AnalystMerrill Lynch (Hong Kong)+8523508 4390fiona.liang3@bofa.com Gas turbineorders farfrom peaking,strong dieselengine Attending management all saw strong GT orders and expect global power shortages andsupply tightness to last till 2028-30F. Dongfang Electric has secured GT orders fromCanada and continues to receive inquiries from customers worldwide. Meanwhile,leading turbine blade manufacturers highlighted a multi-year upcycle in the GT industry,supported by accelerating orders from major global GT OEMs amid ongoing supplyconstraints. Chinese suppliers are rapidly expanding production capacity, improvingmanufacturing yields, and shortening delivery lead times, positioning themselves tocapture market share from established global incumbents. In the engine segment, Gary Tsang >>Research AnalystMerill Lynch (Hong Kong)+852 3508 6825gary.tsang@bofa.com Sun Jung Lee >Research AnalystMerrill Lynch (Seoul)+82 2 3707 0538sunjung.lee@bofa.com Summer Wang, CFA >>Research AnalystMerrill Lynch (Hong Kong)+85235084351summer.wang@bofa.com EsS and power supply:solid demand EsS demand remains strong, driving battery makers to expand capacity. Charlotte Xia >ResearchAnalystMerillLynch (Hong Kong)+85235085029charlotte.xia@bofa.com Yikai Liu, CFA >>Research AnalystMerillLynch (Hong Kong)+85235084212yikai.liu@bofa.com Exhibit 1: Key stocks in AI Power Timestamp:26 June 2026 09:14AM EDT Takeaways Weichai (BUY; 2338 HK) Overall, the company sees robust demand for AlDC prime/backup power (gas gensetsand SOFC) in the next 5-8 years. Management reaffirmed target to deliver over 3,500AlDC engines in '26. Production capacity will reach 5k units by end-2026 & >8.5k units2.5-3Mw (M55 series) products from 4Q26 after client verification is done. In 2027,management expects to deliver over 1k units of AlDC gas genset, with less than 100units 5Mw product. The pricing strategy is based on configuration of products,competitive landscape, and TcO of AIDC. We believe the profitability of AIDC dieselengines is on par with that of global peers and the net margin of gas gensets will behigher than that of diesel engines. The ASP of AIDC diesel engine is >RMB 2mn, while gas gensets are priced at nearlyRMB1Omn. The pricing strategy is based on configuration of products, competitivelandscape, and TCO of AIDC, and generally 5% cheaper than international peers. Theprofitability of AiDC diesel engines is on par with that of global peers and the net marginof gas gensets will be higher than that of diesel engines. Weichai sees higher system flexibility and lower power of soFC solution compared withgas turbine/gas gensets. As such, SOFC solutions are suitable in some AIDC scenarios.Weichai is constructing the Phase-l capacity (3oMW) for SoFC and expects productionlater than 2030. Weichai's cost reduction of OFC solutions will be supported byeconomies of scale, China supply chain, and its metal-supported SteelCell technicalroute. Management expects production cost per Mw to be comparable to that of its Us Management stated that delivery of LNG HDT engines witnessed moderate growth YoY,despite the industry downtrend since Apri'26. Currently, export volume (direct + indirect)accounts for 4O% of the company's total HDT e