Power capacity development drives increased demand for gas turbines

According to information from the China Aero Engine Group, on a recent date, the China AE Gas Turbine Co., Ltd. (abbreviated as “China AE Gas Turbine”) and Hancheng Elite Marine Engineering (Jiangsu) Co., Ltd. (abbreviated as “Hancheng Elite”) officially signed an agreement. Hancheng Elite will purchase 5 “Taihang 7” gas turbines from China AE Gas Turbine as core power generation equipment, to be used in the floating production, storage, and offloading (FPSO) vessel for Malaysia’s national oil company Sepat comprehensive redevelopment project. This marks the first time domestically produced gas turbines have entered the high-end FPSO market, achieving a new breakthrough in offshore energy extreme operating conditions.

A gas turbine is an advanced thermal engine that uses gas or liquid fuels such as natural gas, diesel, and hydrogen as the heat source, based on the Brayton cycle, converting the chemical energy of fuel into mechanical power efficiently. Its advantages include fast startup speed, enabling grid connection on a minute-level basis; stable output and rapid response, with good load-following capability; and relatively lower carbon emission intensity compared with coal-fired power.

With the rapid iteration of large AI models such as GPT, Claude, and Gemini, a global boom has been triggered in building AI data centers. Computing power clusters are densely deployed, with the size of individual units constantly setting new records, and the electricity consumption curve nearly rises vertically. Moreover, AI computing power places extremely high demands on electricity: it must be stable, continuous, and cannot experience even brief interruptions. Fluctuations at the millisecond level may still cause enormous losses, while power grids—where the share of new energy electricity is increasing—face huge challenges in this regard. Gas turbines, known as the “jewel on the crown” of the equipment manufacturing industry, have therefore become an urgent need, moving from the backstage to the front stage.

Market data also confirms this trend. Data from the Global Energy Monitoring organization (GEM) and multiple market research institutions show that in 2025, the world will add 60.4GW of new gas turbine installations, and the market size will be between $24 billion and $25 billion. In the future, gas turbines will continue to occupy a dominant position in the power generation structure, and the global gas turbine market is expected to maintain a growth trend, with the market size forecast to reach $32 billion by 2031.

Facing this highly favorable growth sector, several securities firms have issued optimistic assessments. Citing a point of view, on Zhaoshang Securities(601878) said that gas turbines are the preferred main power solution for U.S. artificial intelligence data centers (AIDC). The global market is dominated by an oligopoly formed by GEV, Mitsubishi Heavy Industries, and Siemens Energy. Industry orders have piled up through 2029–2030, and the capacity gap is significant. With domestic heavy gas turbine technology accelerating breakthroughs, companies such as Dongfang Electric (600875) have achieved localization of core components, bringing the industry two opportunities at once: complete-plant exports to overseas markets and supporting supply of components.

Western Securities noted that catalysts such as data center construction are driving strong demand for gas turbines. Domestic component-supply companies may be able to seize opportunities arising from supply-demand imbalance—deeply supporting overseas enterprises—benefiting from overall market conditions to achieve high growth in performance.

The global supply-demand gap and continued domestic technological breakthroughs are also being reflected simultaneously in China’s A-share market.

According to statistics from Securities Times·Data 宝, there are 23 A-share stocks involved in gas turbine-related businesses. As of April 3, the concept stocks have risen on average 15.47% since the beginning of this year, significantly outperforming the Shanghai Composite Index over the same period. Among them, five stocks have cumulative gains exceeding 50%, namely Wanze Shares(000534), Zhenjiang Shares(603507), Dongfang Electric, Yingliu Shares(603308), and Jerry Shares(002353).

Wanze Shares’ cumulative gain this year is 68.68%, ranking first. As an important domestic supplier of gas turbine components, the company has reached consensus with multiple overseas energy companies on deepening cooperation and has signed related framework procurement agreements.

According to Data 宝 statistics, in terms of institutional attention, a total of 20 gas turbine concept stocks have received positive ratings from institutions (including buy, increase holdings, strong recommendation, and so on). Jerry Shares, Haomai Technology(002595), Dongfang Electric, Yingliu Shares, Xizi Clean Energy, and others received relatively higher counts of ratings from institutions.

The company with the highest number of rating institutions is Jerry Shares, with research reports covering it from 23 institutions. The company has continued to win gas turbine orders this year; the most recent one occurred on April 1. According to the announcement, its wholly owned subsidiary GenSystems Power Solutions LLC signed a sales contract for gas turbine generator sets with a U.S. client. The contract amount is $301 million (about RMB 2.08 billion). The gas turbine generator sets sold in this transaction will be used in the power supply field for data centers. Previously, at the end of March and in early February, the company respectively won orders of $341 million (about RMB 2.36B) and $182 million (about RMB 1.26B).

Haomai Technology received attention from 15 institutions’ research reports. The company’s large mechanical products mainly include casting and precision processing of energy-related component products such as wind power and gas turbines. In 2025, it achieved net profit of RMB 2.39B, up 18.99% year on year.

Dongfang Electric and Yingliu Shares both received attention from 13 institutions’ research reports. Dongfang Electric’s net profit in 2025 was RMB 3.83B, up 31.11%. During the reporting period, the company’s market share in the nuclear power and gas power markets remained the industry’s No.1. Its 15-megawatt heavy-duty gas turbine achieved full-load operation and has the capability of pure hydrogen combustion. Its 50-megawatt heavy-duty gas turbine overseas orders achieved a “zero” breakthrough, laying a solid foundation for its subsequent global market layout.

Yingliu Shares has already provided stable blade supply for Siemens Energy’s F-class gas turbines, and it also takes on the development work for the blades of its H-class gas turbines, becoming the only supplier in China for Siemens Energy’s gas turbine turbine hot-end blades.

(These figures in this edition are provided by the Securities Times Center database)

(Editor: Zhang Yan)

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