AI Infrastructure - China (H/A): Traditional & transitional: AI materials & Power

研报英文原文证据摘录

AI Infrastructure - China (H/A): Traditional & transitional: AI materials & Power

Minor materials (rare earths, Merrill Lynch (Seoul)

tungsten, uranium) are small in volume but critical in value, supporting magnets, Doris Kao >>

precision manufacturing, and power generation. Buy JL Mag/ CGN Mining. 5. Liquid ResearchMerrill LynchAnalyst(Taiwan)

Cooling: we forecast a 36% 2025-30E CAGR in China due to high power intensity and Gary Tsang >>

20-50x higher heat transfer efficiency than air. Buy Shenling/ AVC. Research Analyst

Merrill Lynch (Hong Kong)

Powering AI: Global AI power from 100GW to 300GW See Team Page for List of Analysts

Owing to low costs (China tariffs 30-60% lower vs. the US/EU), high adequacy, young &

well-developed grid, and a robust equipment chain, POWER represents a distinct

Exhibit 1: Key stocks in AI materials &

competitive advantage for China in AI. We forecast cumulative DC power demand to Power

grow from 100GW in 2025 to 300GW in 2030. Direct DC power consumption may a/c for We present the key stocks involved below

3.7% of global power demand by 2030. Five themes (Exh9): 1. global transformer

tightness: China grid capex growth & solid export demand for China and Korea. Buy Stock PO 27E PE 26E ROE%

AI Materials

Sieyuan on export growth, Jinpan for its direct US factory & high AI exposure; LS/HD Zijin 50 9 31%

Hyundai on Korea export (US preferred); 2. Gas Turbine shortages till 2030: forecast Jiangxi Copper 49 10 12%

global gas turbine orders of c.120GW over next 3 years. Buy Dongfang(generator)/ Sinoma S&T 64 34 16%

Yingliu (blades); 3. Chinese diesel engine players are well penetrated the US as AIDC Zhongtian 57 16 23%

backup power. Buy Weichai; 4) ESS: forecast 23%/27% 2025-30E CAGR for global Shenling 128 54 23%

Powering AI