Huatai Securities: Continue to Favor Overseas Gas Turbine Volume and Price Rise + Domestic Supply Chain Going Global + Gas Turbine Supply Overflow Three Main Themes

Huatai Securities Research Report states that there are three main trends to continue optimistic about: overseas gas turbine volume and price increases, domestic supply chain going global, and spillover of gas turbine supply.

1. Overseas gas turbine volume and price increase. Manufacturers of complete machines overseas have generally reached full capacity until the end of 2029. As capacity is released, new orders are expected to be signed with both volume and profit increasing.
2. Domestic supply chain going global. Tensions in key supply chain links such as hot-end blades continue to intensify. Elon Musk mentioned in a February 2026 interview that to ensure power supply, “SpaceX and Tesla may have to manufacture turbine blades internally.”
3. Spillover of gas turbine demand. Major expansion of heavy-duty gas turbines is still expected after 2027. With a supply-demand gap of over 30%, the demand spillover trend will strengthen in the short term.
   On one hand, domestically developed lightweight gas turbines have achieved independent intellectual property rights and self-supply of hot components, supporting the outlook for Chinese gas turbines going abroad. On the other hand, traditional internal combustion engines used for backup power and ships may also provide main power solutions amid power shortages, supporting the outlook for domestic internal combustion engines and related industries going abroad. (People’s Financial News)