[Shanghai Electric]: Gas Turbine Going Global Progresses, Profitability Continues to Improve

English summary

The company is pushing for the first heavy-duty gas turbine to go overseas. After the first export, it expects to gain overseas operating track record, which will help win orders in other approved regions. The JV gas turbine capacity is sufficient to handle potential global orders in the coming years; the company's independently developed IP gas turbine (35MW class) is progressing well and is expected to launch in 2027. In other main businesses, coal power revenue and orders continue to grow; low-price orders have been fully digested, and gross margins have returned to normal levels, so no concern. Energy storage has seen strong new orders and revenue growth, becoming another engine for equipment growth. Transmission and distribution benefits from increased domestic and overseas power infrastructure investment and will become an important part of the company's going-global strategy.