Policy benefits + AI computing power catalysis, power sector erupts. Investors have already pre-positioned in multiple stocks ( list )

On the morning of February 12, the electric power sector experienced a slight decline before continuing to rise. Trends in smart grids, pumped storage, ultra-high voltage, supercritical power generation, virtual power plants, nuclear energy, and nuclear power performed well. Haolianxun hit the 20-cent limit-up, while multiple stocks such as Tefa Information, Zhongheng Electric, Chuanrun Shares, Jiangwuzhuang Equipment, and Sifang Shares all closed strongly with their boards locked. Behind the volatility, besides AI computing power driving electricity demand, the construction of a unified national electricity market with new policies and statements from the State-owned Assets Supervision and Administration Commission (SASAC) have significantly boosted sector sentiment.

The State Council Deploys to Improve the Unified Electricity Market System

On February 11, the General Office of the State Council issued the “Implementation Opinions on Improving the National Unified Electricity Market System,” outlining 19 key tasks across five areas to deepen the development of a unified national market.

The “Opinions” proposed for the first time that various market levels should gradually shift from “each quoting and trading separately” to “unified quoting and joint trading,” exploring feasible ways for neighboring provincial markets to voluntarily unite or integrate. When conditions are ripe, the formation of a national electricity trading center will be studied.

Private enterprises are also expected to become important beneficiaries of this reform. For new energy storage, virtual power plants, smart microgrids, and other new entities mainly led by private companies, the “Opinions” proposed measures to promote flexible participation in market trading. It also first suggested gradually enabling all electricity users, except for protected users, to directly participate in the electricity market.

Regarding development goals, the “Opinions” require that by 2030, a basic national unified electricity market system will be established, with about 70% of electricity traded through market mechanisms. By 2035, the system will be fully built, with electricity resources optimized and efficiently utilized across the country.

SASAC Calls for Central Enterprises to Promote “Computing Power + Electricity” Coordinated Development

In addition to the above documents, the collective surge in electric power stocks today is also closely linked to a significant statement from SASAC.

According to Xinhua News Agency, SASAC recently held a special deployment meeting for the “AI+” initiative of central enterprises, emphasizing that central enterprises should strengthen investment guidance, actively expand effective investments in computing power, promote the coordinated development of “computing power + electricity,” enhance data governance capabilities across the entire chain, and continuously solidify the foundation of the artificial intelligence industry.

SASAC also proposed that central enterprises should strengthen independent innovation, focus on breaking through key core technologies, continue tackling “large model” technologies, and turn more autonomous innovation results from prototypes into products and industries. They should also enhance scenario cultivation, strengthen the precise connection between artificial intelligence, main responsibilities, and industry needs, and focus more on high adaptability, high value, and high reliability to promote large-scale AI application.

Furthermore, SASAC requires central enterprises to strengthen open-source collaboration, accelerate the iteration and upgrade of the open-source “Revamp Community,” strive to become “empowering enterprises,” promote the construction of an “AI+” industry community, and continuously foster a mutually beneficial industry ecosystem.

AI at the End of the Line is Electricity, Industry Experts Optimistic About Sector Outlook

“AI competition is a race involving energy efficiency, power grid infrastructure, green energy development, and nuclear breakthroughs,” the latest report from the Ze Ping Macro team states. In the future, the global AI industry will enter a stage where computing power equals national strength, greatly increasing the importance of stable and sufficient power supply. The core variable determining a country’s or region’s AI competitiveness will be its power infrastructure’s resilience and redundancy.

Guojin Securities pointed out that the demand for AI computing infrastructure is urgent, with global AI data center construction entering a burst period. Distribution system costs account for 10%, with each megawatt of IT load requiring an investment of $2.1 million to $7 million. From 2025 to 2030, the annual global investment in distribution is expected to reach $37.1 billion to $123.7 billion. Meanwhile, energy transition also brings long-term growth to the power equipment industry.

Cinda Securities believes that during periods of ample supply, low electricity prices, and a downward cycle, high-quality leading power state-owned enterprises may achieve excellent performance thanks to advantages in unit quality, group support, regional distribution, and governance capabilities. Under policy support, the coal price center is expected to rise year-on-year by 2026, and integrated coal-power companies may achieve a “turnaround” before pure thermal power companies. The outlook remains positive for the stability and high dividend attributes of coal-power integrated stocks.

Multiple Concept Stocks Gained Leverage Funding This Month

According to Eastmoney’s concept sector data, currently, 189 A-share stocks are involved in the smart grid concept, with a total market value of about 2.8 trillion yuan. State Grid NARI, Siyuan Electric, TBEA, and others are leading in scale.

Stimulated by the “State Grid’s 4 trillion yuan investment plan,” the electric power sector experienced a rally in January. As of February 11, nearly 90% of smart grid concept stocks saw price increases, with Xiaocheng Technology nearly doubling, and stocks like Sanbian Technology, Jiangwuzhuang Equipment, China Western Electric, and Tefa Information gaining over 50% in the period.

In terms of funds, data from Eastmoney Choice shows that since February, 25 smart grid concept stocks received net financing inflows exceeding 10 million yuan. Zhongtian Technology and Far East Shares received 250 million and 169 million yuan respectively, while Chuanrun Shares, Jiechuan Intelligent, Zhongye Da, and Xuji Electric each had net financing over 40 million yuan.