> **来源：[研报客](https://pc.yanbaoke.cn)** # **Summary of Dongfang Electric Plant Visit and Key Insights** ## **Core Content** The document provides a detailed summary of a reverse roadshow visit to Dongfang Electric (DEC), a leading Chinese capital goods company, held on 15 May. The event was attended by approximately 200 analysts and investors, and it focused on DEC's growth prospects in the gas turbine segment, particularly in the context of increasing demand from the AIDC (Asia Infrastructure Investment Centre) power market. The discussion also covered DEC's capacity expansion plans, its current order backlog, and the impact of rising raw material and energy costs on its operations. ## **Main Views** ### **1. Gas Turbine Order Intake and Project Details** - DEC has signed an agreement to deliver **10 units of G50 (50MW) gas turbines** to an AIDC company in Canada, specifically for the **Synapse data centre project**. - The agreement includes the **entire construction service** for the project. - DEC is also in **discussions with the customer to offer full lifecycle services**, indicating a strategic move to enhance value proposition. - The company currently has a **gas turbine backlog of close to 20 units**, which suggests strong demand and a healthy order pipeline. ### **2. Capacity Expansion Plan** - The capacity expansion is planned in **two phases**: - **Phase One**: Completion by 2027. This will increase the annual capacity of **small-to-medium size gas turbines** to **20 units** and **large-size models** to **3 units**. The capex for this phase is estimated at **RMB735 million**. - **Phase Two**: Commencement in **2029**. This will increase the annual capacity of **small-to-medium size models** to **30 units** and **large-size models** to **10 units**. The capex for this phase is expected to be **RMB860 million**. - DEC offers a **full range of gas turbines from 15MW to 500MW** and supports **multi-fuel capabilities**, including **natural gas, hydrogen, and ammonia**, positioning itself as a versatile supplier in the power generation sector. ### **3. China Power Equipment Tender Volumes (2026)** - **Coal-fired power equipment**: Expected tender volume of **50GW** in 2026 (with **16GW** in Q1 2026). - **Wind power**: Expected tender volume of **133GW** in 2026 (with **31GW** in Q1 2026). - **Hydro power**: Expected tender volume of **30GW** in 2026 (with **6.6GW** in Q1 2026). - **Gas-fired power**: Expected tender volume of **7GW** in 2026 (with **1.4GW** in Q1 2026). ### **4. Cost Impact and Mitigation Strategies** - **Raw materials**: The cost increase is mainly attributed to **engine and furnace components**, but the **overall cost hike is only 1%**. - **Oil prices**: A **3% increase in total cost** is expected due to higher oil prices, particularly impacting **gas turbines**. - **Mitigation strategies**: DEC plans to **reduce cost impact** through **long-term supply agreements**, **efficiency improvements**, **hedging**, and **negotiation with clients for cost pass-through**. ## **Key Information** - DEC is a **major player in the Chinese capital goods sector**, with a focus on **power generation equipment**. - The **gas turbine segment** is expected to **outperform** due to **strong demand from AIDC customers** and **capacity expansion**. - The **OUTPERFORM** rating indicates that the **gas turbine industry** is anticipated to **outperform the relevant broad market benchmark** over the next 12 months. - The **report includes important disclosures** regarding **conflicts of interest**, **liability**, and **distribution restrictions**, especially for **UK, US, and Singapore recipients**. ## **Conclusion** The visit to DEC's production base highlights the company's **strategic focus on gas turbines**, **robust order backlog**, and **capacity expansion plans**. These initiatives are expected to **drive growth and enhance competitiveness**, especially in **overseas markets** where **global competitors are constrained by full capacity**. The **OUTPERFORM rating** reflects the **positive outlook** for the **gas turbine industry** in the coming year, supported by **increased demand** and **strategic cost management**.