Domestic power reform and overseas demand resonate! Power grid equipment defies the trend with a significant rise, and many stocks are expected to achieve high growth in performance(List)

On the morning of March 4th, after two days of continuous sharp gains, the oil and gas, shipping, and precious metals sectors experienced a deep correction, while the power grid equipment sector moved against the trend higher. As of the time of writing, Tongguang Cable hit the daily limit up at 20cm, and multiple stocks such as Jicheng Electronics, Shun Na Shares, Sanbian Technology, and Hanlan Shares strongly hit the limit. Leading the gains were Ankao Smart Electric, Xinte Electric, Shuangjie Electric, and Shama Power.

State Grid to Launch 15 Ultra-High Voltage Direct Current Projects

Recently, aside from Middle East tensions affecting the market nerves, the power industry also has several catalysts.

The State Grid Corporation of China recently announced that during the 14th Five-Year Plan, it will strengthen the construction of power grid resource allocation capabilities, enhance the capacity to carry new energy, and serve the high-quality development of new energy.

According to reports, during the 14th Five-Year Plan, State Grid will strengthen the construction of power grids at all levels, aiming to put into operation 15 ultra-high voltage direct current projects. Cross-provincial transmission capacity will increase by 35%, and regional power flexibility and mutual assistance capabilities will more than double, meeting the needs for large-scale, efficient deployment of new energy.

Meanwhile, State Grid will accelerate the construction of system regulation capacity. By 2030, it is expected that the installed capacity of pumped storage in operation and under construction will exceed 120 million kilowatts, new energy power generation in operating areas will account for over 30%, and the scale of green electricity consumption will expand. The additional electricity demand will mainly be met by new energy generation.

Additionally, the recently announced list of the first batch of pilot projects for capacity enhancement of new power system construction marks a new phase of large-scale pilot exploration in China’s new power system development, which has also somewhat boosted trading enthusiasm in the sector.

Continued North American Power Shortage Logic

According to media reports, over the past few months, the three major regional power grid operators in the U.S. (Texas, Mid-Atlantic, and Midwest) have each approved a total of $75 billion in transmission expansion projects, primarily involving the construction of a batch of 765 kV ultra-high voltage lines. If these grid expansion projects are successfully completed, they will form the largest and most powerful power transmission lines in U.S. history.

Additionally, according to CCTV Finance citing U.S. media, a White House official confirmed that on March 4th, executives from several U.S. tech giants including Amazon, Google, and Meta will visit the White House to meet with Trump and sign written agreements. They will commit to meeting the electricity needs of new AI data centers through purchasing or building their own power generation facilities, ensuring that electricity prices for ordinary Americans do not increase with overall demand growth.

The International Energy Agency previously projected that by 2030, global data center electricity demand will more than double to about 945 TWh, with artificial intelligence becoming a major driver of this growth.

CICC research reports indicate that Goldman Sachs has proposed the “HALO strategy,” favoring the scarcity value of “heavy assets with low淘汰率,” with utilities returning to investor focus. Meanwhile, weekly data from OpenRouter shows that domestic models’ token consumption leads, boosting market expectations for stronger electricity demand and indirect overseas expansion.

The agency believes that the power sector has strong dividend attributes, with valuations strengthening under multiple favorable conditions. It also sees the sector as having investment value amid phased market fluctuations and style shifts.

(Article source: Oriental Wealth Research Center)