Shui Fa Gas, dual-wheel drive

According to a report by Shanghai Securities News on February 27, benefiting from the electricity demand driven by AIDC (Artificial Intelligence Data Center) construction, orders for gas turbines domestically and internationally continue to increase. The industry’s high prosperity is being fully realized, with leading companies’ order schedules extended to 2030. As capacity expansion and performance growth accelerate simultaneously, the gas turbine industry is entering a golden development period. Christian Bruch, President and CEO of Siemens Energy, stated during the earnings call, “Our gas turbine delivery schedule has been extended to 2029 and 2030.” A relevant person in charge of Yingliu Co., Ltd. also told reporters, “Many customers have feedback that the order prosperity is expected to continue beyond 2030.” Currently, the three global giants in gas turbines—GE Vernova, Siemens Energy, and Mitsubishi Heavy Industries—are fully booked, with delivery cycles scheduled until 2030. Domestic gas turbine industry chain companies are also facing a historic development opportunity. [Taogu Ba]

Why is the gas turbine industry experiencing a high prosperity cycle? Several industry insiders told reporters that the explosive growth of AI computing power has created rigid demand for stable power supply in data centers. The quick startup and stable power supply characteristics of gas turbines happen to be the preferred solution for this demand. From the demand side, CITIC Construction Investment’s latest research report states that AIDC construction is entering a period of rapid growth. It estimates that from 2025 to 2028, the annual compound growth rate of electricity capacity demand driven by US AI needs will be about 55%. The total demand over the next three years will exceed 150 GW, bringing substantial electricity demand and opportunities for supporting equipment. On the supply side, the institution further mentioned that North America currently faces a prominent power shortage, and self-built power sources are becoming a major trend. Gas turbines, with their quick response, high power adaptability, lower power generation costs, and high reliability, are becoming the primary power source for AIDC.

A report released by UBS on February 16, 2026, remains optimistic about the investment prospects of Chinese power equipment manufacturers. It reaffirmed a high conviction “Buy” rating for Dongfang Electric Corporation (H-shares) and raised target prices for Dongfang Electric (H-shares), Dongfang Electric (A-shares), Harbin Electric, and Yingliu Co., Ltd. by 31%-63%. The core logic is that the global supply tension of gas turbines, combined with the surge in capital expenditure by large US companies, provides Chinese gas turbine companies with opportunities to enter the global supply chain. The option value of exporting to the US has not been fully priced by the market. Meanwhile, the valuation gap between domestic companies and international peers is expected to continue narrowing, leading to a valuation re-rating cycle. The forward P/E ratio for leading global gas turbine manufacturers before 2026 averages 47.5x, with GEVernova at 56.5x, Siemens Energy at 40.8x, and Doosan Heavy Industries over 70x; in contrast, Chinese complete machine manufacturers have a forward P/E of only about 17x, roughly one-third of international peers, indicating a significant valuation discount.

Shui Fa Pai Si Gas Co., Ltd.’s main business includes LNG operations, urban gas operations, gas equipment manufacturing primarily for natural gas power generation, and distributed energy integrated services. Hot event: European natural gas prices surged 50% after the world’s largest natural gas producer, Qatar Energy, announced a halt to liquefied natural gas production following an attack on its energy facilities. The Middle East geopolitical crisis escalated sharply, with Qatar Energy stopping LNG production, cutting off a vital artery of global natural gas trade, causing European natural gas prices to soar. Qatar Energy accounts for about 20% of global LNG exports, and its production halt led to a more than 50% spike in European natural gas prices within two days. The Strait of Hormuz has been closed, and an advisor to the Iranian Islamic Revolutionary Guard Corps stated they would target all ships attempting to pass through the Strait, further intensifying natural gas supply tensions.

Shui Fa Gas $1 Natural Gas/Helium + Gas Turbine, dual-driven, continuous growth.