Power equipment performed well today with a considerable increase. There are actually quite a few driving forces behind this.

First, the capital correction effect of the main theme, flowing from other hot sectors into the power sector. Second, expectations of meetings at the State Grid level are brewing, and the market has sensed the change in direction. More importantly, external signals—new actions in policy at the North American region—have emerged, with relevant senior officials beginning to pressure on data center electricity costs, clearly indicating that follow-up measures will be introduced. The core idea remains to encourage enterprises to build their own power sources and improve grid infrastructure. Meanwhile, there are reports of transformer explosions causing major power outages in North America, further highlighting the pressure on grid capacity and safety.

These factors combined make the allocation value of the power equipment sector very prominent. Especially with the ongoing AI export boom, the corresponding power demand catalyst is still in effect, and this area remains optimistic.